A model for managing intellectual capital to generate wealth : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Business, Massey University, Albany, New Zealand

Abstract

In an increasingly competitive environment an organisation‟s intellectual capital is the key to its ability to generate wealth. The intangibility of intellectual capital makes it difficult to replicate and therefore it is a crucial differentiator in the business environment. The objective of the research was to develop and test a model for the managing of intellectual capital. An examination of the literature provided the foundation for developing a model to illustrate the various facets an organisation must consider when managing intellectual capital. The Intellectual Capital Management Model specifies that management of intellectual capital is derived from the corporate vision and strategy. Three sources of intellectual capital – human capital, internal capital and external capital – contribute to the outcomes essential to differentiate the organisation in the marketplace. Within each of the three sources of intellectual capital, aspects of intellectual capital management were identified and described, according to the research literature. A case study approach was used to assess the extent to which an organisation was managing its intellectual capital. Nine chief executives of the independent business units in a large New Zealand company were interviewed to understand why and how they managed the company‟s intellectual capital. Additionally, 18 employees were interviewed and 44 employees were surveyed in a questionnaire, to determine their views about issues relating to intellectual capital, especially sharing knowledge within the company. Findings indicated that although most of the aspects of the Model were present in the company, conscious management of intellectual capital was not occurring. Metrics was one characteristic frequently mentioned in the literature, but not evident in practice. Behavioural changes and socialisation were two characteristics that emerged strongly from the interviews, but were not widely addressed in the literature. From the perspective of the theoretical model greater attention should be given to behavioural changes and the importance of socialisation; and from the view of the practice model, management needs to address the issue of metrics.