Knowledge management and intellectual capital as a paradigm of value creation

Article type: Research Article

Authors: Rastogi, P.N.

Affiliations: Indian Institute Management, Prabandh Nagar, Lucknow 226 013, India. E-mail: [email protected]

Abstract: Any enterprise can potentially grow profitably through its management of knowledge for intellectual capital. For this purpose, it however, needs to craft an innovative and viable design of its business system. A business system design (BSD) comprises a dynamic architecture which is isomorphic across firms in space and time. A dense dynamic nexus of social capital, human capital and knowledge management – the knowledge management nexus (KMN) – forms the core of BSD. KMN continually rationalises and revitalises the BSD. An inclusive concept of knowledge spectrum as the quintessential resource for value creation is elaborated briefly in terms of its dynamic configuration. A firm's intellectual capital (IC) is seen as the resultant of its KMN. IC represents a firm's meta-capability toward overcoming challenges and exploiting opportunities in its continual pursuit of value creation. A synoptic overview of the KM-IC paradigm is outlined. It provides mental firepower to radically rethink businesses as experiments and exercises in value creation.

Keywords: Knowledge management, intellectual capital, value creation, business system design, knowledge spectrum

DOI: 10.3233/HSM-2002-21402

Journal: Human Systems Management, vol. 21, no. 4, pp. 229-240, 2002