A model of intellectual capital management capability in the dynamic business environment

Abstract

This paper discusses the way in which intellectual capital (IC) can be managed to assist organization to overcome dynamic challenges. An intellectual capital management capability (ICMC) model is developed which permits the management of an organization to realize the potential of IC by measuring the maturity level of its IC. The model is consistent with dynamic capability theory, which suggests leveraging internal and external resources in response to environment changes to sustain competitive advantage. By utilizing in-depth interviews with 25 chief executive officers from firms possessing high IC, this study seeks to inform the readers of the preliminary work and the way in which the maturity level of ICMC can be measured through the development and deployment of dynamic capabilities. The verification and enhancement of the proposed model has also clarified our understanding on the evolutionary path of management capabilities of IC.