Wisdom capital: definitions, meaning and a two-level model

Abstract

Purpose Anecdotal evidence suggests the growing need for wise people and organizations, which are fully dedicated to building up the greater good more than ever before. The purpose of this study is to broaden the role of wisdom by triggering an aware and genuine concern toward building wisdom capital (WC) within organizations. Design/methodology/approach First, this endeavor draws upon key issues of wisdom theory literature, namely, the nuances of its general aspects, basic components, other relevant issues and practical wisdom construct. Second, it suggests a conceptual model through which both workers and organizations may help to build up a solid WC. In addition, some research propositions are also suggested. Finally, it proposes some avenues of research and presents the conclusions. Findings The notion of WC may help individuals and organizations to keep the right path. To some degree, it reminds us that individuals exist to contribute to something greater than themselves through their potentialities, skills and capabilities. The theoretical background of WC urges the individuals to engage in meaningful projects and challenges to improve the human condition. Practical implications Seemingly, managers and CEOs still have a narrow view about what wisdom embraces. Accordingly, it is important to keep in mind that to enhance individual wisdom capital (IWC), concerted efforts are required toward human training and development to improve the organizations and their decision-making systems. Overall, this frame suggests that it is vital to accumulate a WC for the survival and thriving of individuals and organizations. As theorized, WC is a very useful, rich and sense-making form of capital to gather. Originality/value Overall, this article attempts to broaden wisdom theory within organizations by presenting the definition, meaning and scope of WC and its by-products, i.e. IWC and organizational wisdom capital. Hence, it focuses on two levels and describes specific means and ends related to each stance. At last, the proposed variables may be carefully managed and monitored to engender a new business paradigm, that is, the general well-being.

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

“…The results obtained by the research of Hånell et al . (2021), Vasconcelos (2021), Pauleen and Intezari (2019) and Ghorbani and Khormaei (2018) correspond.…”

From knowledge to wisdom: will wisdom management replace knowledge management?

“…Nevertheless, KM authors began to focus on understanding the human factors, processes, context and interactions in knowledge creation (Bencsik et al , 2020; Jakubik, 2007, 2011; Nonaka et al , 2008, 2014; Nonaka and Takeuchi, 2011; Nonaka and Toyama, 2002; Serenko, 2013, 2021; Serenko and Bontis, 2017, 2021; Vasconcelos, 2021). Since year 2000, Nonaka et al (2008) demonstrated the importance of practical wisdom ( phronesis ) and wise leadership in KM.…”

“…For example, the economic consequences of trust and distrust in knowledge-intensive organisations (Bencsik et al , 2020), and the importance of human values and human interactions in KM research. Furthermore, Vasconcelos (2021) proposed the wisdom capital concept, which is highly relevant to KM, and presented his two-level model. He argued that individual wisdom capital (IWC) means doing good, doing right, excellence, improving society, serving others and oneself and organisational wisdom capital (OWC) includes greater good, common good, human good and well-being.…”

“…Recently, research on wisdom in management has been receiving increased attention (Bachmann et al , 2018; Banerjee, 2014; Ekmekҫi et al , 2014; Jakubik, 2021a; McKenna and Rooney, 2005; McKenna et al , 2009; Müürsepp, 2021; Nonaka et al , 2014; Rooney et al , 2010; Solé, 2017). Furthermore, there exist intense discourses on intelligent work, intelligent workers, wisdom workers, wisdom organisations, wisdom capital and the wisdom economy and wisdom society (Dobson, 2010; Jakubik, 2020a; Liew, 2013; Maxwell, 2021; Müürsepp, 2013a, b, 2021; Pink, 2006; Stebbins, 2017; Vasconcelos, 2021). Additionally, since the 1980s, research on wisdom in psychology has intensified (Ardelt, 2004; Baltes and Staudinger, 2000; Bangen et al , 2013; Jeste et al , 2010; Karami et al , 2020; Karami and Parra-Martinez, 2021; Sternberg and Karami, 2021).…”

Investigating practical wisdom in complex system management: What is it and how do we get more?

“…Jeste et al (2019) list the following attributes: compassion, self‐reflection, uncertainty acceptance, spirituality and decisiveness. Vasconcelos (2022) asserted that wise people have the right expertise and knowledge to handle concrete challenges and can form proper solutions in novel situations and take action.…”