Author: Chan, Heron
Title: The impact of the effective management of intellectual capital on firm performance
Degree: D.B.A.
Year: 2003
Subject: Hong Kong Polytechnic University -- Dissertations
Intellectual capital
Organizational effectiveness
Knowledge management
Department: Graduate School of Business
Pages: xi, 243 leaves ; 30 cm
Language: English
Abstract: A recent review of the academic literature relating to the management of knowledge assets and intellectual capital revealed a research gap. Little was known about the true impact of a firm's knowledge assets and intellectual capital on its performance. How do different types of capital, namely human, structural, social and cultural capital, affect the firm's performance? This thesis provides some initial information and recommendations concerning this issue. After reviewing the relevant literature, a model was developed and four hypotheses were presented, in order to test the relationships between the different types of firm's performance and its aspect of capital on knowledge management. A total of 106 respondents -all of whom were senior management or owners of SME firms -participated in the mail survey. These respondents represented industries from the manufacturing and services sectors. All four hypotheses were tested with theoretical construct and formative scale indices approaches together with both correlation and regression analyses, in order to explore and validate the research model's links. The analysis found that firms with higher levels of human, structural, social and cultural aspect on knowledge management support various performance measurements. The construct relating to firm's customer networks focused (items from social capital measurement) has a positive and statistically significant correlation with most of the performance measurements. This result shows that the social capital aspects of knowledge management, such as customers' knowledge, are the key to successful company performance. The formative scale indices approach also supports that social capital index has a positive and statistically impact to most performance measurements. It has also found that theoretical construct approach provides more detailed information for practicing managers than the formative scale indices approach. The final construct contains eight variables: Quality of Employees (QOE), Employee Ownership (EO), Retaining Knowledge for Success (RKS), Customer Networks Focused (CNF), Learning From Customers (LFC), Knowledge Creation Environment (KCE) as well as New Ways of Doing Things (NWDT) were directly related to effective knowledge management and their impact to firms' performance. These are not new to general management practices. However, this study reconfirms that some of the general or basic management practices are applicable to the management of knowledge and, as a result, these practices yield increased performance.
Rights: All rights reserved
Access: restricted access

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