Proceedings of the 8th International Conference on Intellectual ...

Helen Mitchell and Dennis Viehland
within <strong>the</strong> business. Bill Martin (2008, p. 398) states: “Organizational culture is widely regarded as a
key influence on <strong>the</strong> success <strong>of</strong> knowledge management”, and to gain value from knowledge it is
essential that within <strong>the</strong> business <strong>the</strong>re is a culture that encourages <strong>the</strong> sharing <strong>of</strong> knowledge (Tseng,
2009).
Culture influences behaviour and attempting to make a transition from a culture where sharing is not
<strong>the</strong> norm, to one that emphasises <strong>the</strong> importance <strong>of</strong> sharing can be traumatic for those involved (King
and Anderson, 2002). Making cultural changes takes time, but critical elements for being successful
in making change is communicating why change is necessary and this requires giving credence to <strong>the</strong>
importance <strong>of</strong> knowledge and contributing knowledge is valued.
Recognising intellectual capital as a key provider <strong>of</strong> future wealth requires management to have in
place supportive mechanisms enabling cross fertilisation <strong>of</strong> knowledge to occur. However, <strong>the</strong>re is
power attached to knowledge in that it can be sold, or given away. Therefore, it is important
organisations are aware <strong>of</strong> <strong>the</strong>ir vulnerability with regard to <strong>the</strong> selling <strong>of</strong> knowledge, or loss <strong>of</strong>
knowledge through departing employees, because <strong>of</strong> <strong>the</strong> impact <strong>the</strong>se situations may have on <strong>the</strong>
ability to maintain <strong>the</strong>ir competitive position.
The process <strong>of</strong> renewing, organising and transforming knowledge assets enables organisations to
define <strong>the</strong>ir future capabilities and to maximise <strong>the</strong> value <strong>of</strong> <strong>the</strong>ir intellectual assets. It is important to
constantly review what has been done with <strong>the</strong> aim <strong>of</strong> doing things better, abandoning activities no
longer relevant, and replacing <strong>the</strong>m with new ones (Rastogi, 2003). Renewal should be regarded as a
way <strong>of</strong> promoting organisational sustainability through constantly re-evaluating currency <strong>of</strong> knowledge
to determine its ability to sustain <strong>the</strong> organisation’s positioning within <strong>the</strong> marketplace.
Commitment is involved in managing intellectual capital. This begins with an understanding <strong>of</strong> <strong>the</strong>
purpose and direction <strong>of</strong> <strong>the</strong> organisation, and <strong>the</strong> realisation that intellectual capital as a strategic
asset links to <strong>the</strong> organisational performance. This in turn is linked to <strong>the</strong> contribution <strong>of</strong> <strong>the</strong> individual
employee. To gain value from intellectual capital, strong management skills are required to persuade
employees that <strong>the</strong>ir contribution impacts on <strong>the</strong> organisation’s ability to continue to keep ahead <strong>of</strong> its
competitors. Therefore, it is necessary for management to focus on <strong>the</strong> development <strong>of</strong> <strong>the</strong>
organisation’s capabilities and competencies by recognising that <strong>the</strong> intellectual capital within <strong>the</strong>m
will place <strong>the</strong> organisation in a position to compete in a dynamic environment.
Difficulties associated with <strong>the</strong> replication <strong>of</strong> an organisation’s knowledge by ano<strong>the</strong>r organisation
emphasises <strong>the</strong> strategic importance <strong>of</strong> intellectual capital for an organisation’s future development
and prosperity. Previously, manufactured products tended to be recognised as <strong>the</strong> source <strong>of</strong> wealth,
but <strong>the</strong> proliferation <strong>of</strong> service, technology and research-focused businesses is attracting increased
attention. The base upon which such organisations operate can only be assumed to be <strong>the</strong>ir
intellectual capital. However, <strong>the</strong> operational activities <strong>of</strong> a manufacturer <strong>of</strong> products can also be
differentiated from o<strong>the</strong>r organisations through its intellectual capital.
Managing intellectual capital places <strong>the</strong> organisation in a position to understand <strong>the</strong> value <strong>of</strong> <strong>the</strong>
knowledge available to it, and to direct that knowledge to creating innovations. How innovative an
organisation is determines its future. Innovative organisations become recognised as forward thinkers
resulting in respect within <strong>the</strong>ir industries that can lead to fur<strong>the</strong>r opportunities. Many innovations
emerge through incremental progression ra<strong>the</strong>r than as a major breakthrough producing an amazing
new product. Therefore, organisations should be constantly questioning what <strong>the</strong>y are doing, and how
<strong>the</strong>y are doing it because <strong>the</strong> reconfiguring <strong>of</strong> specialist knowledge can lead to new innovations
(Grant, 1996).
An effective management approach identifies where <strong>the</strong> most valuable facets <strong>of</strong> <strong>the</strong> intellectual capital
are positioned, and brings relevant connections toge<strong>the</strong>r to be communicated throughout <strong>the</strong>
organisation as it involves <strong>the</strong> linking toge<strong>the</strong>r <strong>of</strong> all <strong>the</strong> threads <strong>of</strong> knowledge that permeate <strong>the</strong>
organisation. Managing intellectual capital is complex and it is important that <strong>the</strong> management <strong>of</strong>
intellectual capital is developed to provide a framework for maximising <strong>the</strong> leveraging <strong>of</strong> intangible
assets (Saint-Onge cited by Chatzkel, 2000). Rastogi (2003, p. 230) promotes a holistic perspective
“to co-ordinate, orchestrate, and deploy its knowledge resources toward creating value in pursuit <strong>of</strong> its
future vision”. A less controlling and more systems-oriented perspective is suggested by Saint-Onge
(cited by Chatzkel, 2000, p. 103). This can be achieved by reconfiguring <strong>the</strong> organisational structure
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