The Development of ICTs and the Introduction of Entrepreneurial Capital

Abstract

Building on an extensive literature review, this article presents a conceptual study of the relationships between information and communication technologies (ICTs) and intellectual capital (IC), placing special emphasis on entrepreneurial capital. IC comprises human capital, structural capital, and relational capital. Relational capital consists of two sub-components: social capital and organizational capital. Human capital’s main elements are knowledge, experience, and education. Knowledge is a fundamental resource for any organization (Baden-Fuller & Pitt, 1996; Grant, 1996; Spender, 1996). Entrepreneurial capital was recently introduced as a component of human capital (Audretsch & Keilbach, 2004). A firm’s entrepreneurial capital consists of employees who innovate and take risks to change how the firm acts. In addition to addressing IC, this research examines new ICT use. An ICT firm can be defined as a firm that is technologically connected in real time. Technology, information, and communication are the most powerful tools to develop firms (Hafkin & Taggart, 2001). As such, technology, information, and communication may also have profound links to entrepreneurial capital. ICTs and IC are two keys to entrepreneurship (Costa, 2012). ICT firms need their employees’ intellectual capital, or else these firms will never achieve long-term sustainability (Madsen, Neergaard, & Ulhoi, 2003). Similarly, intellectual capital benefits from ICT firms to transfer knowledge via networks.