VALUE OF INTELLECTUAL CAPITAL ON CORPORATE PERFORMANCE: An African experience

Abstract

Drucker (1992) views intellectual capital as the only major source of capital that can create productivity and contribute towards profits for corporations. The problem statement refers to lack of recognition about this significant contribution of intellectual capital towards corporate performance by some organisations in Africa. Thus, the objective of the research was to focus on the intellectual constructs in order to fully understand its dynamics within an African framework. The study drew corporate data from different companies using structured questionnaires. The data was analysed through the use of univariate and correlation analysis. It is found that some corporations are not still aware of the importance and necessity of intellectual capital that brings innovation and profitability. Many managers in Africa still tend to put much emphasis on the other four sources of capital as comprising labour capital, natural resource capital, financial capital and debt capital more than the intellectual capital. Thus, recognition of intellectual capital is still in the transitional stage amongst many organisations in Africa. It is expected that the results of this research will enhance knowledge and recognition of intellectual capital value as another source of productivity and a contributor towards corporate performance and profitability.