Sustainable Competitive Advantage through Embedding Intellectual Capital in the Business Plan and Strategy

Abstract

Purpose: The purpose of this paper is to present a comprehensive model of embedding intellectual capital in the business plan and strategy. The model aims to increase the sustainable performance of companies and ensure their competitive advantage, suggesting a methodology for managing intellectual capital. A case study of a Macedonian company, where the model is piloted, is presented. Design/methodology/approach: Qualitative research in a form of interviews among managers and a case study of a Macedonian company was used to obtain data about the effects of the piloted model. The transformational process from a traditional to a learning organization started in 2014, with measurement intellectual capital, followed in the next years with measures and activities for managing intellectual capital and integrating it with the business strategy and plan. Findings: The findings confirmed the positive effects of intellectual capital on the company’s performance. In the period of 2014-2022 a number of strategic decisions, innovative actions and structural measures have been developed and implemented. For each capital (human, organisational, structural, relational, process and innovation) activities and indicators were specially designed matching the strategic goals, the organisational structure and the available resources. Research limitations/implications: This comprehensive model of embedding intellectual capital in the business strategy for sustainable competitive advantage explored in this paper is piloted for the first time. More examples and studies like this are needed to follow the effects in different companies. Our recommendation is to replicate the research and compare the analyses with different companies, preferably in other countries as well. Practical implications: This study is expected to increase the motivation of other companies to manage intellectual capital and increase their business sustainability and competitive advantage. Originality/value: The presented model has double value – contributing to research and practice in the field of intellectual capital and sustainability management.