Study of Intellectual Capital Dimensions in IT Industry Using DEMATEL Method

Abstract

The purpose of this paper is to analyse the causal relation structure among the dimensions of Intellectual Capital (IC) by using the DEMATEL method. In this study, the dimensions of IC comprise human, structural, and relational capital. This study empirically analyses the causal relation structure with a sample of 18 (12 national and 6 multi-national) Information Technology (IT) firms operating in India. The respondents were the experts from IT firms encompassing chief executive officers, general managers, Human Resource (HR) managers, senior managers, and the IT consultants. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is used for the statistical treatment of the data. On the human, structural, and relational capital fronts, findings of the study suggest that “motivation of the personnel”, “operation process”, “brand value”, respectively, have the maximum causing properties. The study is limited to IT industry of India only. The dimensions of IC will differently trigger the attitude and behaviours of employees relevant for the parent organisation that helps the management to deal with different dynamic circumstances resulting in different outcomes. Study empirically assessed that there are synergy and causal relation structure between the dimensions. Present study contributes to retention and engagement of human capital and prefers potentially important policy implications. Examining the interrelationship among the dimensions of IC in the context of Indian IT is the novel contribution of the present study. Theoretically and empirically assessing the causal interrelationship and addressing the research gaps summarised from the literature will contribute to the IC research.