The role of intellectual capital and corporate strategy on sustainable value creation

Abstract

Intellectual capital is changing into an important issue for a firm's long-term profit and performance within the knowledge-based economy as many firms determine their core competence as invisible assets instead of visible assets. In this article, we example the role of intellectual capital in terms of how it affects organisational strategy. Based on a sample of Portuguese firms from diverse industries (trading, service, finance, and technology), we examine the role of top manager's judgement on the role of intellectual capital on organisational strategy. The findings reveal that Portuguese managers do acknowledge the importance of intellectual capital and its components have a significant positive relationship with firms' organisational strategy. Future research suggestions and practical implications are discussed in the article, which stress the role of intellectual capital being one of the most important assets for a firm's strategy regardless of industry structure.