Review On Intellectual Capital And Its Components Towards Competitive Advantage In Universities
Nowadays, business organizations are undergoing in a complex and volatile environment facing big challenges caused from the rapid changes in the economic and political issues. Further, the traditional tangible capitals like cash, buildings, inventories, and etc. As effective weapons for organization...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/15519/ http://umpir.ump.edu.my/id/eprint/15519/ http://umpir.ump.edu.my/id/eprint/15519/1/P104%20pg763-774.pdf |
| Summary: | Nowadays, business organizations are undergoing in a complex and volatile environment facing big challenges caused from the rapid changes in the economic and political issues. Further, the traditional tangible capitals like cash, buildings, inventories, and etc. As effective weapons for organizational survival can no longer be counted on alone [1]. Since knowledge becomes vital in leading economy currently, the importance of the intangible assets or the so-called intellectual capital has emerged [2]. Until the period of 1990s, the Intellectual Capital management and reporting were widely practiced within industry as a response to the ever increasing investments in intangible assets or intellectual capital such as employees’ training, innovation, research and development, customer relationships or software, etc. [3] as well as a solution to the lack of existing accounting methods to provide sufficient information for managing these investments. Hence, it became necessary for organizations to define intellectual capital and learn how to turn it into a profit, or to strategically develop competitive permanent feature. And it becomes imperative for organizations to look at the intellectual wealth, skills and creative ideas inherent in human resources and non-exploitative and innovative so that they can invest in them to extract the highest value through development to achieve a competitive advantage in light of the difficult economic conditions [4]. Towards this end, the paper reviews the related literatures on intellectual capital, its components, its effects on competitive advantage. Figure 1 depicts the conceptual framework of the components of intellectural capital and its effects on competitive advantage. Finally, it narrowed down to focus on managing intellectual capital in universities. It is hoped that the review paper will raise the awareness of knowledge intensive organizations in better utilizing intellectual capital and ultimately achieving competitive advantage. |
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