Culture and intellectual capital: towards a conceptual framework

Abstract

Purpose The purpose of this paper is to represent the findings from the first phase of an ongoing research project whose primary goal is to identify the most significant organizational internal and external cultural variables that leverage and enable a firm’s intellectual capital (IC) to make it more competitive in the marketplace. Design/methodology/approach The authors build on their earlier work in which Ulrich’s definition of IC as Competence × Commitment was expanded to include two additional dimensions, Creativity and Culture. The previous model explored the relationship between IC and the following five critical variables: Competence, Commitment, Control, Creativity and Culture. Here, the authors identify the most significant organizational internal and external cultural variables that leverage and enable a firm’s IC to make it more competitive in the marketplace. Findings This paper demonstrates the interplay between different cultural types and levels of business volatility on IC. The authors argue that the more volatile the industry is, the greater the need to secure and capitalize on IC, and the more critical it is for firms to adopt a flexible and adaptive organic culture that encourages the creation and leveraging of IC. Originality/value This framework is original and expands on Ulrich’s classical work on IC. It helps senior leaders and managers explore how to effectively and proactively capitalize on IC and leverage complex IC assets. The preliminary exploration into these convergent strands has provided a foundation to further develop and establish the interrelationships between organizational culture and IC.