Dynamic intellectual capital in global rapidly changing industries

Pirjo Ståhle · Jianzhong Hong

57 citations0/0 files storedJournal of Knowledge Management

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Intellectual Capital and Performance Analysis Innovation and Knowledge Management Knowledge Management and Sharing

Abstract

This paper introduces a newly developed knowledge management concept, dynamic intellectual capital (IC), which refers to a company’s ability for self‐renewal. The paper presents how dynamic IC is created in three different knowledge environments – mechanistic, organic and dynamic – and brings out relevant empirical evidence from three case studies of multinational and Chinese firms. The paper concludes that knowledge‐intensive organizations need to master all the three knowledge environments regardless of their different strategic focus. Failures on any environment might form a hindrance for market efficiency. The development of dynamic IC is subject to the firm’s ability to balance both current arena (e.g. realized IC) and potential force (e.g. potential IC). The development of dynamic IC is strongly based on multi‐way communication, which must include both top‐down and bottom‐up as well as cross functional communication. The analysis of tensions, problems and challenges can be a critical step toward a self‐renewing organization in managing such complexity of dynamic IC.

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References

1997The Knowledge-creating company: How Japanese companies create the dynamics of innovation 1996The knowledge-creating company: How Japanese companies create the dynamics of innovation 2014Learning by Expanding 1997Motivating Creativity in Organizations: On Doing What You Love and Loving What You Do 1993The spirit of community: rights, responsibilities, and the Communitarian agenda 1990The social psychology of innovation in groups.1977Dialectical logic : essays on its history and theory

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