The Role of Intellectual Capital in Creating and Adding Value to Organizational Performance: A Conceptual Analysis

Abstract

Abstract: The rapid growth of knowledge economy in the last two decades has changed management styles. Organizations knowledge strategy should be driven from business strategy to ensure development of knowledge culture. Such a culture ensures knowledge activities, namely acquiring, sharing, creating, transforming and utilizing. The knowledge environment will encourage and promote innovative processes. The feedback from external environment and experience from previous projects will help in research and development. The amalgamation of new and known knowledge will help devise ways and means of transformation for effective and efficient performance. A conceptual model is developed to study the moderating role of intellectual capital competencies in knowledge strategy‑organizational performance relationship. The research studies how intellectual capital competencies moderate the knowledge strategy—organizational performance relationship. The novelty of this research is studying .relationship of Knowledge Strategy‑Organizational performance trough moderating role of process innovation, research and development integration of past projects and market intelligence. This research will educate and create awareness in managers for nurturing organizations intellectual capital and managing their daily affairs effectively. It will guide in devising better strategies, processes and methods to manage intellectual capital. This will help create value through innovations and improved performance.