Intellectual Capital and External Environment Links in Organisations: An Exploratory Study

By Eric Kong.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Intellectual capital (IC) is generally categorised into three primary interrelated components: human capital (HC), structural capital (SC), and relational capital (RC). The popular ‘value platform’ has been widely used to help managers to visualise the importance of value creation through the interactions of the three IC components. However, organisations do not exist in vacuum. External environment conditions are crucial to organisations’ ability to function as well as knowledge transfer from and to the organisations. A review of the literature and a series of in-depth interviews with 36 senior executives from 23 organisations in Australia reveal that there is a strong link between IC and external environment in organisations. A better understanding of the link enables organisations to better manage their intellectual resources and external environmental conditions. The paper contributes to the existing IC literature by suggesting a modified IC conceptual framework which highlights the importance of external environment in the today’s knowledge economy.

Keywords: Intellectual Capital, External Environment, Knowledge Flow, Strategic Management

International Journal of Knowledge, Culture and Change Management, Volume 8, Issue 4, pp.11-18. Article: Print (Spiral Bound). Article: Electronic (PDF File; 699.493KB).

Dr. Eric Kong

Lecturer, School of Commerce, Charles Sturt University, Wagga Wagga, New South Wales, Australia

Eric Kong is a Lecturer at the School of Commerce, Charles Sturt University, Australia. He completed his PhD in Strategic Management at Monash University, Australia. He also holds a Master of Science in Quality Management from the University of Paisley, United Kingdom and a Postgraduate Diploma in Training from the University of Leicester, United Kingdom. Prior to joining the academia, Eric worked in Human Resources and Training & Development in the private sector for 10 years. His current research interests include intellectual capital, knowledge management, non-profit management, strategic management and governance. Eric is a member of Academy of Management (AOM) and Australian and New Zealand Academy of Management (ANZAM).

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