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Proceedings of the 3rd European Conference on Intellectual Capital

Proceedings of the 3rd European Conference on Intellectual Capital

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Ruxandra Bejinaru and Stefan Iordache<br />

parts <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se may exist into <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r comp<strong>on</strong>ents <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>al intellectual capital. The errors<br />

may come up when measuring twice <str<strong>on</strong>g>the</str<strong>on</strong>g> same knowledge, or third times <str<strong>on</strong>g>the</str<strong>on</strong>g> intelligence from <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

human capital, <str<strong>on</strong>g>the</str<strong>on</strong>g> social capital and <str<strong>on</strong>g>the</str<strong>on</strong>g> relati<strong>on</strong>al capital. The problem is that <str<strong>on</strong>g>the</str<strong>on</strong>g>se three dimensi<strong>on</strong>s<br />

are associated to <str<strong>on</strong>g>the</str<strong>on</strong>g> dynamic nature <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital but <str<strong>on</strong>g>the</str<strong>on</strong>g> basic structure <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>al<br />

intellectual capital does not change, which c<strong>on</strong>fines understanding and evaluating <str<strong>on</strong>g>the</str<strong>on</strong>g> potential <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

intellectual capital.<br />

5. The dynamics <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> intellectual capital and <str<strong>on</strong>g>the</str<strong>on</strong>g> influence <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge<br />

dynamics<br />

<strong>Intellectual</strong> capital is a key factor to innovati<strong>on</strong> and represents a competitive advantage in nowadays<br />

knowledge based ec<strong>on</strong>omy. At <str<strong>on</strong>g>the</str<strong>on</strong>g> same time, knowledge dynamics is recognized as a fundamental<br />

activity for catching, increasing and supporting intellectual capital within <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>s. This<br />

means that successful administrati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital is tightly bound to knowledge dynamics<br />

processes in <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>; in c<strong>on</strong>sequence this implies that using knowledge dynamics in practice<br />

ensures <str<strong>on</strong>g>the</str<strong>on</strong>g> extracti<strong>on</strong> and development <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital.<br />

N<strong>on</strong>aka (2000) states that, despite <str<strong>on</strong>g>the</str<strong>on</strong>g> widely recognized importance <str<strong>on</strong>g>of</str<strong>on</strong>g> intellectual capital, even if<br />

many times intellectual capital is equalized with knowledge, exists very little applicability <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> way<br />

organizati<strong>on</strong>s achieve to create intellectual capital actually by managing knowledge dynamics. In<br />

additi<strong>on</strong>, to N<strong>on</strong>aka and K<strong>on</strong>no (1998) knowledge creati<strong>on</strong> requires a comm<strong>on</strong> c<strong>on</strong>text <str<strong>on</strong>g>the</str<strong>on</strong>g>y call “ba”<br />

(signifying “space”). Ba represents a shared c<strong>on</strong>text that may exist in various forms: as physical,<br />

virtual, or mental space and explains why knowledge, as opposite to informati<strong>on</strong>, can’t be separated<br />

from c<strong>on</strong>text – this being incorporated in <str<strong>on</strong>g>the</str<strong>on</strong>g> ba. In order to provide <str<strong>on</strong>g>the</str<strong>on</strong>g> appropriate ba, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are<br />

some requirements <str<strong>on</strong>g>the</str<strong>on</strong>g> learning organizati<strong>on</strong> has to check <strong>on</strong>. Firstly, <str<strong>on</strong>g>the</str<strong>on</strong>g> learning organizati<strong>on</strong> is <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

<strong>on</strong>e that best grants <str<strong>on</strong>g>the</str<strong>on</strong>g> benefits <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge sharing. Sec<strong>on</strong>dly, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are more processes <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

knowledge c<strong>on</strong>versi<strong>on</strong> and each <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>se processes occurs within a different c<strong>on</strong>text, or ba. In a third<br />

place, individuals must be included and guided towards <str<strong>on</strong>g>the</str<strong>on</strong>g> appropriate c<strong>on</strong>text which finally will lead<br />

to knowledge creati<strong>on</strong>. It is easy to observe that, within different departments, knowledge dynamics<br />

varies both in processes dimensi<strong>on</strong> and prevalence regarding certain types <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge c<strong>on</strong>versi<strong>on</strong>.<br />

Practice observati<strong>on</strong>s show that <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> problems organizati<strong>on</strong>s’ c<strong>on</strong>fr<strong>on</strong>t with when <str<strong>on</strong>g>the</str<strong>on</strong>g>y project<br />

and analyze knowledge dynamics are inside any organizati<strong>on</strong> and that knowledge is used in different<br />

ways depending <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> department. For example, inside an organizati<strong>on</strong> is probable that within <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

departments resp<strong>on</strong>sible with producti<strong>on</strong> and delivery <str<strong>on</strong>g>of</str<strong>on</strong>g> goods prevails explicit knowledge being<br />

enclosed into processes and procedures. On o<str<strong>on</strong>g>the</str<strong>on</strong>g>r behalf, inside <str<strong>on</strong>g>the</str<strong>on</strong>g> same organizati<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g> research<br />

department is probable to abound <str<strong>on</strong>g>of</str<strong>on</strong>g> tacit knowledge. On individual level, intellectual capital<br />

represents at least <str<strong>on</strong>g>the</str<strong>on</strong>g> basic issue when a pers<strong>on</strong> wants to develop c<strong>on</strong>tinuously his/her knowledge<br />

and increase his/her productivity, through applying each available organizati<strong>on</strong>al methodology.<br />

The existence <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge dynamics serves as an organizati<strong>on</strong> competence that helps creating <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

intellectual capital at <str<strong>on</strong>g>the</str<strong>on</strong>g> necessary level that might heighten <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>’s performance. The link<br />

between intellectual capital and knowledge dynamics at individual level may be reduced to a pers<strong>on</strong>’s<br />

motivati<strong>on</strong> to increase his/her participati<strong>on</strong> in such a way to c<strong>on</strong>tribute at building an organizati<strong>on</strong><br />

oriented towards learning. On <str<strong>on</strong>g>the</str<strong>on</strong>g> organizati<strong>on</strong>al level we picture <str<strong>on</strong>g>the</str<strong>on</strong>g> dynamic processes <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

vertical axis c<strong>on</strong>tributing to transform individuals’ assets into organizati<strong>on</strong>al, and <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> horiz<strong>on</strong>tal axis<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g>y reflect <str<strong>on</strong>g>the</str<strong>on</strong>g> progressive knowledge transformati<strong>on</strong> into acti<strong>on</strong>. (Bratianu, 2008)<br />

6. C<strong>on</strong>clusi<strong>on</strong>s<br />

We hope that we have c<strong>on</strong>vinced you about <str<strong>on</strong>g>the</str<strong>on</strong>g> righteousness <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> approach as we have been<br />

proving <str<strong>on</strong>g>the</str<strong>on</strong>g> two c<strong>on</strong>cepts interc<strong>on</strong>nectivity and granted each <strong>on</strong>e’s merits regarding evoluti<strong>on</strong>. In our<br />

opini<strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> learning organizati<strong>on</strong> c<strong>on</strong>centrates <strong>on</strong> employees and this will undisputedly lead to<br />

increase skills and capacities, to improve methods and tools <str<strong>on</strong>g>of</str<strong>on</strong>g> work and to discover new channels<br />

and paths <str<strong>on</strong>g>of</str<strong>on</strong>g> correlating things. Our c<strong>on</strong>victi<strong>on</strong> is that all <str<strong>on</strong>g>the</str<strong>on</strong>g>se may be achieved within <str<strong>on</strong>g>the</str<strong>on</strong>g> learning<br />

organizati<strong>on</strong> throughout <str<strong>on</strong>g>the</str<strong>on</strong>g> managing <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge dynamics, and <str<strong>on</strong>g>of</str<strong>on</strong>g> course that intellectual capital<br />

can’t be removed from <str<strong>on</strong>g>the</str<strong>on</strong>g> equati<strong>on</strong>.<br />

In order to form a working mechanism <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge dynamics and intellectual capital we have to<br />

comprehend <str<strong>on</strong>g>the</str<strong>on</strong>g>ir specific “pers<strong>on</strong>alities” and preview <str<strong>on</strong>g>the</str<strong>on</strong>g>ir processing toge<str<strong>on</strong>g>the</str<strong>on</strong>g>r. O<str<strong>on</strong>g>the</str<strong>on</strong>g>rwise, such<br />

segregati<strong>on</strong> limits <str<strong>on</strong>g>the</str<strong>on</strong>g> understanding <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge as a valuable resource for a company’s growth<br />

and development. Learning invariably needs to be treated as an endogenous factor in <str<strong>on</strong>g>the</str<strong>on</strong>g> formati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

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