Proceedings of the 3rd European Conference on Intellectual Capital

Intellectual Capital Dynamics within <strong>the</strong> Learning
Organization
Ruxandra Bejinaru 1 and Stefan Iordache 2
1 Steven <strong>the</strong> Great University <strong>of</strong> Suceava, Romania
2 Academy <strong>of</strong> Economic Studies, Bucharest, Romania
ruxandrabejinaru@yahoo.com
stefan.iordache1@gmail.com
Abstract: Throughout this paperwork we present <strong>the</strong> research we undertook with respect to <strong>the</strong> dynamics <strong>of</strong>
intellectual capital within <strong>the</strong> learning organization. Lately, <strong>the</strong> valuation <strong>of</strong> intellectual capital has become an
industry <strong>of</strong> itself and companies struggle to continuously multiply and refresh resources. Nowadays, building a
real-time learning organization represents <strong>the</strong> mission <strong>of</strong> many entrepreneurs. Thus <strong>the</strong> paper objectives are to
determine <strong>the</strong> specific implications and variations <strong>of</strong> <strong>the</strong> intellectual capital as an important component to be
managed and to be shaped within <strong>the</strong> learning organization. The learning organization and <strong>the</strong> intellectual capital
are both largely debated concepts and <strong>the</strong> universal evolution provides more and more issues to discuss due to
<strong>the</strong>ir dynamic nature. Considering that in order for <strong>the</strong> learning organization to properly work it’s required a
dynamic mechanism, we have analyzed <strong>the</strong> intellectual capital circuit within this type <strong>of</strong> organization. In our view,
intellectual capital represents knowledge with various shapes, ei<strong>the</strong>r tangible or intangible, which may be
exploited to produce financial or o<strong>the</strong>r benefits for <strong>the</strong> organization. The intellectual capital is a dynamic
component that may continuously be modelled with respect to its quantity, quality, value, usefulness or intensity
<strong>of</strong> use and this is exactly what <strong>the</strong> statute <strong>of</strong> <strong>the</strong> learning organization implies: a continuous adaptation,
continuous learning, continuous exploitation <strong>of</strong> resources and opportunities. The structure <strong>of</strong> <strong>the</strong> paper will firstly
present <strong>the</strong> dynamic approach <strong>of</strong> <strong>the</strong> authors upon <strong>the</strong> intellectual capital and <strong>the</strong> learning organization,
emphasizing <strong>the</strong> key connections between <strong>the</strong>m. Fur<strong>the</strong>r, within ano<strong>the</strong>r section <strong>of</strong> <strong>the</strong> work we shall describe <strong>the</strong>
dynamic processes within <strong>the</strong> learning organization for <strong>the</strong> individuals’ level as well as for <strong>the</strong> organizational level.
Throughout <strong>the</strong> next part we design a novel perspective <strong>of</strong> <strong>the</strong> intellectual capital dynamics including its specific
processes within <strong>the</strong> learning organization. The concluding remarks attempt to convince <strong>the</strong> audience about <strong>the</strong>
righteousness <strong>of</strong> <strong>the</strong> approach, to prove <strong>the</strong> two concepts interconnectivity and to award each one’s merits
regarding evolution.
Keywords: intellectual capital, <strong>the</strong> learning organization, knowledge dynamics, knowledge management
1. Concepts introduction
Organizations are founded upon <strong>the</strong> humans’ knowledge. Only knowledge and knowledge-based
organizations can dominate <strong>the</strong> markets (Drucker, 1995). It has long been recognized that 'economic
prosperity rests upon knowledge and its useful application' (Teece 1981). Starting from <strong>the</strong> hypo<strong>the</strong>sis
that <strong>the</strong> engine <strong>of</strong> an organization’s management works on knowledge, <strong>the</strong>n each process <strong>of</strong> decision,
planning or implementation <strong>of</strong> a strategy within <strong>the</strong> organization rely on a continuous circuit <strong>of</strong>
ga<strong>the</strong>ring, analyzing and using data and on <strong>the</strong> knowledge dynamics. Thus, we may suspect that <strong>the</strong>
continuous learning process, <strong>the</strong> continuous supply and administration <strong>of</strong> knowledge should innovate
and improve people and <strong>the</strong> organization. Knowledge dynamics could help organizations to increase
<strong>the</strong>ir capacity <strong>of</strong> facing <strong>the</strong> continuous challenges <strong>of</strong> change. Within this paper we shall discuss about
how knowledge dynamics helps and develops <strong>the</strong> organization’s intellectual capital. Our paper is
based on <strong>the</strong> conceptualization <strong>of</strong> intellectual capital being based upon knowledge dynamics and its
representation within <strong>the</strong> learning organization.
Intellectual capital has been considered by many, defined by some, understood by a select few, and
formally valued by practically no one (Stewart, 1997; Sveiby, 1997). Therein lays one <strong>of</strong> <strong>the</strong> greatest
challenges facing business leaders and academic researchers today and tomorrow. As difficult as
may be to quantify <strong>the</strong> input <strong>of</strong> intellectual capital or <strong>the</strong> processing <strong>of</strong> knowledge, we will continuously
try to do so until we shall have <strong>the</strong> right equation that generates <strong>the</strong> impressive output. The
intellectual capital dynamics represents a defining feature <strong>of</strong> <strong>the</strong> learning organization as <strong>the</strong> first is an
important and complex resource to be managed within <strong>the</strong> latter one’s framework. Each component <strong>of</strong>
<strong>the</strong> intellectual capital will integrate and contribute in various ways.
The learning organization strongly relates its existence to intellectual capital and to all its forms. In this
context <strong>the</strong> learning organization is <strong>the</strong> perspective <strong>of</strong> a system that explores, shapes, develops and
uses <strong>the</strong> employees capabilities, capacities and skills in order to gain competitive advantage and
benefits. Among <strong>the</strong>se, human capital is a fundamental component due to its endless generation <strong>of</strong>
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