Identify Variables to Measure Intellectual Capital in organizations: A Literature Review.

Abstract

Currently the importance and the validity of Intellectual Capital (IC) for creating and maintaining sustaining competitive advantage for organizations has been well recognised. Swiss think-tank (Gottlieb Duttweiler Foundation) research revealed that only 20 percent of knowledge available to an organization is actually used. Therefore, IC management and measuring appeals much attention from academics and practitioners. It is revealed that existing measures of human and IC are inadequate and are not developed in par with strategy processes. This desk study aims at identifying constructs and dimensions to measure IC of an organization. A systematic literature survey was conducted to identify constructs of IC. Literature was searched in Google Scholar. Articles were searched using the string “Measuring Intellectual Capital”. Time was set as “Any Time”. There were 256 articles shown. Suitable and allowable articles were referred in this study. Additionally, articles referred by the authors of above articles were also taken into consideration As accepted by many authors who interested in this subject are, the IC consist of Human Capital (HC), Structural Capital (SC) and Relational Capital (RC). As per the literature review, to measure Human Capital Employee absenteeism, Employee attitude, Capabilities, Commitment, Competencies, Creativity, Efficiency, Employee Pay, Turnover, Experience, Expertism, Intelligence, Knowledge related indices, Disputes, Leadership qualities, Learning Training and education indices, Motivation, Performance, Satisfaction, Skills Abilities and Talents and measurements of Team work can be used. In order to measure Structural Capital Working atmosphere, Controlling systems, Corporate practices and procedures, Databases, Efficiency and Effectiveness of practices, ICT usage, Information availability, Innovation rate, Intellectual Property and trade secrets, interdisciplinary projects, Internal relationships, knowledge sharing, Management philosophy, Mutual Support, Organizational Knowledge, Processes and Systems, R&D practices, Renewal and Development, Roles responsibilities and routines, Structure and Technology can be used. And to measure Relational Ccapital, indicators related to Building customer relationships, identify customer needs, Market share, Market Potential, Brand image and trademarks, Value of Supplier, Sales and Distribution channels, Stakeholder relationships, Marketing indicators, Value of Joint ventures and SCR activities has been used.