Proceedings of the 12th European Conference on Knowledge ...

Fattah Nazem
Intellectual capital is a firm's source <strong>of</strong> competitive advantage, to become knowledge driven,
companies must learn how to recognize changes in intellectual capital in <strong>the</strong> worth <strong>of</strong> <strong>the</strong>ir business
and ultimately in <strong>the</strong>ir balance sheets. A firm's intellectual capital – employees' knowledge, brain
power, know- how, and process, as well as <strong>the</strong>ir ability to continuously improve those process-is a
source <strong>of</strong> competetive advantage (Vargas-Hernández, and Noruzi, 2010). Successful organizations
hire intelligent staff and this is <strong>the</strong> usual form <strong>of</strong> developing intellectual capital in <strong>the</strong> organization
(Sveiby, 1997; Ross et al 1997; Stewart 1997; Edvinsson and Sullivan 1996; Edvinsson and Malone,
1997). Intellectual capital can foster organizational competitiveness (Vargas-Hernández, and Noruzi,
2010).
Close attention to intellectual capital is an absolute necessity within all organizations particularly
higher education institutions. Intellectual capital is a commodity necessary to guarantee organizational
survival and universities’ competitive advantage in <strong>the</strong> complex and competitive world.The results <strong>of</strong>
this study are also in line with those <strong>of</strong> o<strong>the</strong>r research projects <strong>the</strong> breadth <strong>of</strong> which are mentioned in
<strong>the</strong> previous sections. Fur<strong>the</strong>rmore, universities, as one <strong>of</strong> <strong>the</strong> social systems, have been recognized
as <strong>the</strong> engine <strong>of</strong> disseminating knowledge and awareness as well as <strong>the</strong> center <strong>of</strong> directing <strong>the</strong>
societies. They are <strong>the</strong> basic centers <strong>of</strong> thought and reflection. The questionnaire administered here
also enjoys some psychoanalytic features, specifically construct validity. These are some <strong>of</strong> <strong>the</strong>
reasons which lead <strong>the</strong> researcher to recommend that <strong>the</strong> same study be carried out not only in
Islamic Azad University but in all o<strong>the</strong>r universities and its findings, in turn, be taken into consideration
in those universities. In order to increase intellectual capital in universities, it should first be measured
through a valid instrument. Consequently, necessary managerial actions should be taken. Also since
structural capital shows <strong>the</strong> highest contribution in forming <strong>the</strong> intellectual capital in universities,
efforts should be spent to streng<strong>the</strong>n <strong>the</strong> index. Leaders are also urged to take practical steps
towards materializing <strong>the</strong> principles <strong>of</strong> Intellectual capital since <strong>the</strong>y guarantee <strong>the</strong> survival <strong>of</strong> <strong>the</strong>
organization and are <strong>the</strong> only competitive benefits in <strong>the</strong> third millennium.
Acknowledgements
This paper is extracted from a research project sponsored by <strong>the</strong> research department <strong>of</strong> <strong>the</strong> Islamic
Azad University, Roudehen Branch to whom I owe a debt <strong>of</strong> gratitude.
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