In the matrix organizational structure most of the workers have dual line of reporting as they are responsible to report the team leader and chief of the organization for their work activities osullivan, 2009. Social capital, intellectual capital, and the organizational advantage janine nahapiet. On the other hand, social capital is a new concept playing much more important role compared to physical and personal capital in organizations and society prusak and cohen, 2001. Although organizations have avoided the area of intellectual capital for many years15, scholars have come to emphasize the apparent importance of measuring and managing intellectual capital 16. The role of social capital in enhancing competitive advantage. The intellectual capital that developed in the past according to an organizational architecture based on. University of oxford sumantra ghoshal london business school scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage. This trust will be tempered by hierarchical rules to ensure stability. Ghoshal this article considers the value of social capital in providing an organizational advantage, which is rooted in the idea of the significance of relationships as a. Th is defi nition focuses on the relationship between intellectual capital and organizational learning. In addition, our findings show that pc explains percent of competitive advantage. While social capital proponents are arguing for its inclusion in formulations of intellectual capital mcelroy, 2002.
Social capital, intellectual capital, and the organization. First, intellectual capital is a firms only appreciable asset. The impacts of intellectual capital, innovation and. Managing the intellectual capital of the firm has become one of the main tasks on the. Stewart identifies also three types of intellectual capital. Intellectual capital, social capital and communities of. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge. Intellectual capital and organizational organic structure. Intellectual capital is defined as the organizational resources which comprise human capital, structural capital and relational capital bontis, 1998. Nonfinancial reports and accounts routledge advances in organizational learning and knowledge management.
Intellectual capital is the intangible value of a business, covering its people human capital, the value relating to its relationships relational capital, and everything that is left when the employees go home structural capital, of which intellectual property ip is but one component. Investigating the impact of social capital on knowledge. Although, for a long time it has been recognized that economic wealth comes from knowledge assets, i. Introduction the global market is progressively moving towards knowledge and technological innovation, seeking methods to boost competitive advantage. Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. Social capital, intellectual capital, and the organizational advantage 1998. Social capital intellectual capital and the organizational advantage janine nahapiet templeton college. The construct of organizational commitment has received. Social capital, intellectual capital, and the organizational advantage janine nahapiet templeton college, university of oxford sumantra ghoshal london business school scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage, rather than focus on. Influence of intellectual capital in the organizational. Social capital, intellectual capital, and the organizational advantage janine nahapiet templeton college, university of oxford sumantra ghoshal london business school scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage. Organizational investment in social capital social capital is the predictable combined or economic benefits resulting from the better. Capital refers to the internal systems, patents, organisational structures and human capital as the skills, competencies and education of the firms staff.
Social capital and organizational commitment pdf social capital and organizational commitment. Moreover, intellectual capital has been comprised of human capital, customer capital, and structural capital. Introduction in todays competitive global market, value creating factors for companies are changing. Besides, the dimensions of intellectual capital human capital. Developing a comprehensive understanding of how transformational leadership effectiveness could be affected by key organizational factors will require understanding social capital theory. With this study the relationships between intellectual capital, organizational strategy, innovation and firm performance have been researched. Main components of intellectual capital and competitive advantage. Intellectual capital the concept of intellectual capital was first used in 1969 by john. Almost by definition, tightly knit communities, such as some immigrant groups, have strong. Confirmatory factor analysis and structural equation modelling. The essence of intellectual capital is the value creation that can be understood as a complex of intangible property, knowledge, skills, processes, applied experience and technologies used in organizations to ensure a competitive advantage on the market. Consequently, the impact of intellectual capital on organizational performance is high, allowing the validation of the assumed association in 201 luminita maria gogan et al. The relation between intellectual capital and knowledge society can be seen as a relation between the past and the future graph 1, namely between the outcomes and the present and the ability to generate such outcomes in the future, too. Intellectual capital, competitive advantage, human capital, organizational capital, relational capital, knowledge based economy.
It is the sum of everything everybody in a company knows that gives it a competitive edge. The output of effective management of the intellectual capital of the organization is the increase of innovation activities through the creation of new products or services with higher added value for the customer by increasing. The social capital is derived from the organizations values, goals, and principles that. Value creation is the essence of effective firm strategies as well as the primary source of their advantage over market institutions moran and ghoshal, 1996. Human capital is weak or where the state offers few social services. The effect of intellectual capital on organizational. This work was supported in part by atma jaya catholic university of indonesia. Broking describes intellectual capital as a combination of all the intangible. Ultimately, every industry worked effortlessly to use intellectual capital in attaining organizational innovative performance. It can be seen that the organizational culture and intellectual capital is an. The impact of intellectual capital, social capital and. Intellectual capital, social capital, psychological capital and competitive advantage. Organizational investment in social capital oisc and. Additionally, the relationship between social capital and intellectual capital is explored, as is the impact of this relationship upon a firms perceived organizational advantage.
Intellectual capital has a positive effect on competitive advantage. Social capital, intellectual capital, and the organizational advantage. Instead of being derived from tradition or loyalty, the new trust is built upon values of competence and integrity. Intellectual capital, corporate reputation, corporate. Social capital and competitive advantage the consumers competitive advantage has received a significant attention over the last few years. Nahapiet and ghoshal 1998 determine three dimensions for social capital, and categorize them as. White paper communities of practice, social capital and. A survey of the relationship between social capital and intellectual capital of the organization case study of the employees and lecturers of azad university of kermanshah of iran. The influence of intellectual capital on knowledge sharing. Intellectual capital can be located in its people, its structures and its customers stewart, 1997. Managers perception on the role of integrators that generate and develop intellectual capital is similar to the employees perception. A survey of the relationship between social capital and.
Intellectual capital, social capital and communities of practice john pierce c eng, fics this, the third of a series of articles on managing knowledge, visits the concepts of intellectual and social capital and looks at communities of practice, with a real example. The second hypothesis refers to managers and employees perception. The study of social capital, organizational learning. A proposed management response framework for competitive advantage based on knowledge growth. Intellectual capital, corporate reputation, corporate culture and performance of firms listed at the nairobi securities exchange anne wangui kariuki a phd thesis submitted in partial fulfillment of the requirements for the award of degree of the doctor of philosophy in business administration, school of business, university of nairobi 2014. Analysis of influence organizational culture toward. Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage, rather than focus on the causes and consequences of market failure. The impact of intellectual capital on organizational. Introduction in the past years, ic and its measurement was a subject of the researches only in developed.
The impact of intellectual capital on firm performance is still poorly defined. The source of this advantage, we argue, lies in their ability to develop dense social capital which facilitates the. Silvi and cuganesan 2006 refer to eustaces statement saying, a fundamental shift in the. How cultural capital can help you become a more effective leader. At the same time, edvinsson says the main distinction is between human capital and structural capital, which can then be. Social capital, intellectual capital social capital.