Impact of social capital and business operation mode on intellectual capital and knowledge management

Abstract

Chief executives have recently identified knowledge management (KM) as a 'must do' item for their firms. These executives have also contended that social capital is a catalyst in effectively implementing knowledge management. However, the mechanism through which social capital influences knowledge management requires further study. This study examines the influence of social capital and business operation mode on knowledge creating activities, intellectual capital (IC) and knowledge management effectiveness.After a series of interviews with experts and a questionnaire survey, this study reached the following findings:• firms implementing higher levels of authority delegation and social capital tend to engage in more knowledge-creating activities and have more intellectual capital• levels of intellectual capital tend to significantly influence KM effectiveness • social capital and delegation of authority are significant moderators of the relationships between knowledge-creating activities and intellectual capital.

Competing explanations for knowledge exchange: Technology sharing within the globally dispersed R&D of the multinational enterprise

“…A body of theoretical and empirical literature supports the concept that social interaction (Nonaka, 1994;Tyre & von Hippel, 1997;Wu & Tsai, 2005) and social exchange (Emerson, 1976) are important in a firm. He sums up his position by stating: "Exchange theory" is not to be taken as a theory.…”

Intellectual Capital: How Do Islamic Ethics Rejuvenate It?

“…(Edvinsson & Malone, 1997;Sveiby, 1997;Bontis, 1998;Bueno et al, 2004;Ismail & Songip, 2006). The concept of IC has been extended into two more new important elements: spiritual capital and technological capital (Ismail & Songip, 2006;Wu & Tsai, 2005) that have positive impacts on organizational performance. Ramezan (2011) (Stewart, 1997;Edvinsson & Malone, 1997).…”

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“…An example of using this approach is the Value Added Intellectual Coefficient (VAIC) model [Pulic, 2000]. The following indicators are used most often: labour costs to assess human capital [Sydler et al, 2013;Pulic, 2000]; administrative costs and R&D expenditures to assess structural capital [Edvinsson, Malone, 1997;Roos, Roos, 1997;Sydler et al, 2013]; and commercial expenditures to assess relational capital [Edvinsson, Malone, 1997, Wu, Tsai, 2005. This approach does not guarantee accurate results either, since the indicators are calculated using open-source data and do not reflect the actual value of intellectual capital elements: balance sheets and profits-andlosses statements are published in accordance with conservative corporate standards which do not take into account market expectations.…”