International Journal of Innovative Research and Development

Abstract

Purpose–The purpose of this paper is to explore the practical implications of an epistemological approach to intellectual capital (IC) in the context of the capital markets. It draws on the theory of IC and the capital market actors. The purpose of this paper is to demonstrate that market capitalization (market cap) of many countries outweigh their GDP.  This market cap is represented by IC but which deplorably is ignored by the stakeholders to a large extent – out of ignorance, indifference and lack of ethics, governance and compliance. The article drives home the point that the rules of business are being rewritten and the industrial era enterprise models are no longer adequate to meet the dynamic condition of a changing world market. Hence, the need for thinkers and thought leaders to chart new paradigms and new directions to view IC as strategic investments of organizations.

Design/methodology/approach–This paper through critical reflection addresses the content elementsof the strategic nature of the holistic intellectual capital and how the capital market actors from the demand and supply side view it through the prism of financial market behavior. .  It also for the first time comes out with an optimization model of Sustainable One World of Stakeholders juxtaposed with the raison d etreof IC-driven business framework wanting all those who matter to be on same page for a better, one world.

Findings– IC makes a strategic differentiation in contemporary business being the catalyst for market capitalization.  Despite being an alchemist to transmute IC into business excellence and the realization by stakeholders of its stellar  role in the world economy, it does not get a place of primacy it deserves by the demand-side and supply-side of the  capital market participants. This paper highlights and provides fresh insights on the need to look IC as a game-changer by the capital market actors (demand-side and supply-side)  and powers that be as gate-keepers and conscience-keepers to foster IC-driven business growth.

Originality/value– To the best of the authors knowledge so far there are no studies published that provide a detailed discussion relating IC to capital market participants.  This paper by offering a critical lens through which to enrich extant IC literature for the first time extends the frontier of IC knowledge offering a new path and demonstrating  that there is a need for  scholars,  practitioners and other stakeholders of IC to pursue possible avenues to further develop the visualization, management, measurement and reporting of IC.  It also allows stakeholders to understand the barriers to implementing IC in organizations and do self-introspection. Given the exploratory, conjectural nature of this article relating to an optimization  IC model and the capital markets and non-existence of research literature on the IC-driven one-world philosophy and practice, issues and ideas discussed in this article  will inevitably require further conceptual exploration and fundamental research.  The intent of the article is to further debate and research on   IC-based business strategy aimed at improving the capacity-to-act both inside and outside the organization. The constructed heuristic tools serve as a basis for rigorous empirical testing through systematic investigation of the theoretical underpinnings of IC strategy thereby throwing up considerable potential for future research – both pure and applied bringing in its train green shoots to be bullish on IC.

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Abstract

Purpose– The aim of this paper is to reflect on how intellectual capital (IC) as a strategic, mission-critical resource could be pragmatically, yet powerfully leveraged as a value-driven process by contemporary organizations.

Design/methodology/approach– This article is based on the authors’ reflections of the past and vision for the future to identify and tread on paths useful for theoretical and practical relevance from the IC research perspective.  Referred published studies and seminal works were analyzed and then systematized.

Findings– IC literature is rich in theory matured over the past two decades. The work of scholars, practitioners and thought leaders need to be integrated to pave the way for an empowered, maximization approach to reap the benefits of IC by all stakeholders through the prism of current research insights

Practical implications–It is hoped that the implication of this paper for IC research and practice is to evolve a leading edge approach.

Originality/value– The paper is a first attempt to present “an optimization IC model of business” It provides a deeper understanding of how companies can create and realize value for impact. It is also the first study that uses the IC optimization model of the “input-output-outcome-impact-value of impact” genre using the most popular contemporary IC models in theory and practice with focus on the need of the hour, that is, leveraging critical and per formative research literature.

Paper type -Conceptual paper

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Purpose – The purpose of the paper is to roll out a cognitive map spotlighting the quintessence of the valuable information in contemporary IC literature of how IC has been historically and currently vital.  It also aims to give the fundamental frameworks against the backdrop of today‘s strategic concepts used in business and industry.

Design/methodology/approach – The paper reviews the seminal literature of IC to be a theoretical framework.

Findings – The findings show that IC has been a catalyst in the lives of people and business since time immemorial. This is at the core of   contemporary business occupying the centre stage in 21^st century organizations synergizing business models and practices. Hence, its comprehension and robust application  by all concerned in terms of its definitions, elements, frameworks, measurement models   are indispensable and imperative.

Research limitations/implications – The review is limited to scholarly peer-reviewed,   referred international journals   published before August 2013.

Practical implications – IC is an area of interest to numerous parties, including managers, accountants and accounting firms, shareholders, individual and institutional investors, regulators, analysts, technologists, scholars, board of directors, corporate executives, policymakers and other stakeholders. IC can equip them to formulate effective strategies to discover blue oceans and stay ahead of Strategic Inflection Points (SIP), a fact of life in the 21^st century going by recessions, political upheavals and the political and economic balance of power among nation states.  This paper serves as a useful reference on the evolution of IC and the concepts for application to business and management.

Originality/value – The study examines the why, what and how of IC.  Existing strategy literature   rarely connects the different IC dimensions and points out their interdependencies with a line of sight with business strategy and execution.   This overarching perspective knitting the past-present-future horizon helps to integrate the different dimensions of IC to formulate and execute strategy by organizations.  

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