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Proceedings of the 3rd European Conference on Intellectual Capital

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Fattah Nazem<br />

intellectual capital model presented by Saint-Onge (1996), culture is viewed as <str<strong>on</strong>g>the</str<strong>on</strong>g> filter to understand<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> envir<strong>on</strong>ment according to which certain strategies are adopted. There would be no or little<br />

success in l<strong>on</strong>g-term plans if <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>’s culture were not in line with <str<strong>on</strong>g>the</str<strong>on</strong>g>se plans. Here,<br />

organizati<strong>on</strong>al culture acts as part <str<strong>on</strong>g>of</str<strong>on</strong>g> structural asset through which tacit knowledge is formed. It also<br />

determines <str<strong>on</strong>g>the</str<strong>on</strong>g> increase in <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits from competiti<strong>on</strong>. In <str<strong>on</strong>g>the</str<strong>on</strong>g> model presented by Sveiby (1997)<br />

believes that value comments are part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> competiti<strong>on</strong> and it is advisable to pay respectable<br />

attenti<strong>on</strong> to <str<strong>on</strong>g>the</str<strong>on</strong>g> work envir<strong>on</strong>ment, customers, and <str<strong>on</strong>g>the</str<strong>on</strong>g> super-ordinates which is a kind <str<strong>on</strong>g>of</str<strong>on</strong>g> comm<strong>on</strong><br />

cooperative culture. Following <str<strong>on</strong>g>the</str<strong>on</strong>g> studies which underlined <str<strong>on</strong>g>the</str<strong>on</strong>g> role <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capitals in<br />

universities in Western Ontario, B<strong>on</strong>tis (1998) presented <str<strong>on</strong>g>the</str<strong>on</strong>g> Model from <str<strong>on</strong>g>the</str<strong>on</strong>g> University <str<strong>on</strong>g>of</str<strong>on</strong>g> Western<br />

Ontario in which organizati<strong>on</strong>al culture is a fundamental element in forming structural asset. He<br />

believed that organizati<strong>on</strong>s should have <str<strong>on</strong>g>the</str<strong>on</strong>g> culture which is str<strong>on</strong>g enough for <str<strong>on</strong>g>the</str<strong>on</strong>g> individuals to be<br />

able to gain new experience, failure, and learn again something new; <str<strong>on</strong>g>the</str<strong>on</strong>g> culture that punish <str<strong>on</strong>g>the</str<strong>on</strong>g> staff<br />

for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir malfuncti<strong>on</strong>s will have <str<strong>on</strong>g>the</str<strong>on</strong>g> least success. Flamholtz (2002) c<strong>on</strong>sidered culture as <str<strong>on</strong>g>the</str<strong>on</strong>g> major<br />

factor in <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> an organizati<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g> cornerst<strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> l<strong>on</strong>g-run goals <str<strong>on</strong>g>of</str<strong>on</strong>g> a successful<br />

company. Copeland (2001) also thought <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong>al culture as a giant step forward in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

development <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> intellectual capital. Edvinss<strong>on</strong> (1997) emphasizes <str<strong>on</strong>g>the</str<strong>on</strong>g> important role <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

organizati<strong>on</strong>al culture in intellectual capital model and c<strong>on</strong>sider culture and values as <str<strong>on</strong>g>the</str<strong>on</strong>g> core <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

intellectual capital. Organizati<strong>on</strong>al culture is more than just <str<strong>on</strong>g>the</str<strong>on</strong>g> asset <str<strong>on</strong>g>of</str<strong>on</strong>g> an organizati<strong>on</strong>. Therefore,<br />

organizati<strong>on</strong>al culture is <str<strong>on</strong>g>the</str<strong>on</strong>g> surviving factor and <str<strong>on</strong>g>the</str<strong>on</strong>g> core <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong> and is, according to<br />

Tierney (1988), an internal interactive communicati<strong>on</strong> network which can easily evaluate <str<strong>on</strong>g>the</str<strong>on</strong>g> validity <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>.<br />

According to <str<strong>on</strong>g>the</str<strong>on</strong>g> results <str<strong>on</strong>g>of</str<strong>on</strong>g> this study, <str<strong>on</strong>g>the</str<strong>on</strong>g>re is ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r variable which affects intellectual capital<br />

management is managers’ creative problem-solving. In <str<strong>on</strong>g>the</str<strong>on</strong>g>ir study, Whetten and Camer<strong>on</strong> (2006)<br />

found out that skills like individual decisi<strong>on</strong>-making and problem-solving are am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>es owned<br />

by effective managers. Camer<strong>on</strong> and Tschirhart (1988) also c<strong>on</strong>cluded that problem-solving skill is<br />

am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> five most important skills <str<strong>on</strong>g>of</str<strong>on</strong>g> effective managers. Prentice (1984) also found out that <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

vital skills <str<strong>on</strong>g>of</str<strong>on</strong>g> effective managers are leadership and problem-solving. In <str<strong>on</strong>g>the</str<strong>on</strong>g>ir research, Margeris<strong>on</strong><br />

and Kakabadse (1984) pointed out <str<strong>on</strong>g>the</str<strong>on</strong>g> most important skills for high ranking managers include <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

ability to analyze, leadership and management, and decisi<strong>on</strong>-making. A study c<strong>on</strong>ducted by Whetten<br />

and Camer<strong>on</strong> (1984) revealed that decisi<strong>on</strong>-making and problem-solving are two leading skills in<br />

successful managers. Hunsieker (1987) also ended up with <str<strong>on</strong>g>the</str<strong>on</strong>g> result that two skills with significant<br />

impact <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> managers’ success are leadership and management skills. Luthans et al. (1985) also<br />

reported that decisi<strong>on</strong>-making skill to solve problems as <str<strong>on</strong>g>the</str<strong>on</strong>g> most influential skills am<strong>on</strong>g managers.<br />

According to Baghdarnia (2006), <str<strong>on</strong>g>the</str<strong>on</strong>g> more <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>ceptual abilities and skills <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> managers, <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

more efficient <str<strong>on</strong>g>the</str<strong>on</strong>g>y will be. Also, managers with creative problem-solving skill are more successful.<br />

Hassanvandi (2009) found out that managers with creative problem-solving skill lead <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />

organizati<strong>on</strong>s to success. O<str<strong>on</strong>g>the</str<strong>on</strong>g>r studies also underline <str<strong>on</strong>g>the</str<strong>on</strong>g> relati<strong>on</strong>ship between managers’ creativity<br />

and creative problem-solving and leadership and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir better functi<strong>on</strong>. (Ackerley, 2006; Johns<strong>on</strong>,<br />

1986).<br />

In Ross and Ross (1997), human capital is c<strong>on</strong>sidered as <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> comp<strong>on</strong>ents <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital<br />

which includes such features as senior managers’ leadership and innovati<strong>on</strong>. In Brooking’s (1997)<br />

model, human capital encompasses staff’s knowledge in an organizati<strong>on</strong>, problem-solving<br />

capabilities, leadership and management skills, and innovati<strong>on</strong>. Sveiby (1997) also underlines <str<strong>on</strong>g>the</str<strong>on</strong>g> role<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> management skills in human capital. Stanfield (1990) pinpointed that efficiency <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> managers in<br />

gaining pr<str<strong>on</strong>g>of</str<strong>on</strong>g>it. In Ramboll Group’s Model (2007) values and management are am<strong>on</strong>g <str<strong>on</strong>g>the</str<strong>on</strong>g> distinctive<br />

features <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital. In Edvinss<strong>on</strong> and Mal<strong>on</strong>e (1997) <str<strong>on</strong>g>the</str<strong>on</strong>g> human capital including<br />

leadership and c<strong>on</strong>ceptual problem-solving are underlined. In Marr and Giovanni’s (2001) model<br />

human capital includes knowledge asset that is represented in <str<strong>on</strong>g>the</str<strong>on</strong>g>ir problem-solving skill, initiati<strong>on</strong>,<br />

and <str<strong>on</strong>g>the</str<strong>on</strong>g>ir tendency for entrepreneurship.<br />

The results <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> studies c<strong>on</strong>ducted in <str<strong>on</strong>g>the</str<strong>on</strong>g> field reiterate that success in performing intellectual capital<br />

models requires managers who are creative so that, in <str<strong>on</strong>g>the</str<strong>on</strong>g> complicated and competitive world, <str<strong>on</strong>g>the</str<strong>on</strong>g>y<br />

can solve <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>’s problems creatively.The need for management and leadership is vital<br />

and sensible in all fields <str<strong>on</strong>g>of</str<strong>on</strong>g> social activities. Without effective leadership and guidance, material and<br />

human resources are doomed to decrease and destructi<strong>on</strong>, while <str<strong>on</strong>g>the</str<strong>on</strong>g> managers <str<strong>on</strong>g>of</str<strong>on</strong>g> higher educati<strong>on</strong><br />

as people who are in charge <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong>s and university branches are c<strong>on</strong>sidered as <str<strong>on</strong>g>the</str<strong>on</strong>g> main and<br />

determining factor in preparing and supplying <str<strong>on</strong>g>the</str<strong>on</strong>g> human resources required by o<str<strong>on</strong>g>the</str<strong>on</strong>g>r organizati<strong>on</strong>s<br />

which provide services or products in <str<strong>on</strong>g>the</str<strong>on</strong>g> society.The appointment <str<strong>on</strong>g>of</str<strong>on</strong>g> managers with creative<br />

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