Submitted Successfully!
To reward your contribution, here is a gift for you: A free trial for our video production service.
Thank you for your contribution! You can also upload a video entry or images related to this topic.
Version Summary Created by Modification Content Size Created at Operation
1 -- 1778 2023-03-10 08:26:27 |
2 format correction -4 word(s) 1774 2023-03-13 01:59:11 |

Video Upload Options

Do you have a full video?


Are you sure to Delete?
If you have any further questions, please contact Encyclopedia Editorial Office.
Ali, M.A.; Hussin, N. Multidimensional View of Intellectual Capital. Encyclopedia. Available online: (accessed on 13 June 2024).
Ali MA, Hussin N. Multidimensional View of Intellectual Capital. Encyclopedia. Available at: Accessed June 13, 2024.
Ali, Mostafa A., Nazimah Hussin. "Multidimensional View of Intellectual Capital" Encyclopedia, (accessed June 13, 2024).
Ali, M.A., & Hussin, N. (2023, March 10). Multidimensional View of Intellectual Capital. In Encyclopedia.
Ali, Mostafa A. and Nazimah Hussin. "Multidimensional View of Intellectual Capital." Encyclopedia. Web. 10 March, 2023.
Multidimensional View of Intellectual Capital

Examining the past state of the art in the intellectual capital sector for achieving high levels of innovation performance provided a multidimensional picture of intellectual capital, innovation performance, and dynamic capabilities. 

intellectual capital innovation performance dynamic capabilities

1. Culture

Organisational culture was initially recognised by (Peters and Waterman 1982) as a precursor to success and greatness. As a result of studying the knowledge of the most successful organisations, they came to this conclusion. Therefore, (Henri 2006) stated that “The best companies have a very strong culture, so powerful that you can only stay if you buy into their conventions. Most employees in the best organisations can’t find a middle ground” (p. 11). A strong organisation culture is based on a set of fundamental beliefs, traditions, symbols, rituals, and unwritten norms to which all workers are expected to abide. Organisations that develop their identity by emphasising ideals, heroes, rituals, and cultural connections may also have a secret weapon lying dormant in their arsenals (Dombrowski et al. 2007).
In a study which set out to determine the organisational culture, (Stewart 1997) considered the employees’ capital as the resources of the organisational cultures and innovations. This capital can possibly be developed by considering the ideas and suggestions of the employees for the improvements of the business. The cultural factor determines the course of actions of an institution and foresees its progress (Kim and Chang 2019). According to (Berezinets et al. 2016), strong social networking being significant for the innovations can help to gain and maintain the flexibility, acting as the performance indicator. In brief, the supportive cultures are constructive due to their encouraging nature for the positive emotion that motivates the innovation performance (Berson et al. 2008).

2. Trust

The issue of organisational trust has been the primary focus of study in management studies in general, and in organisational behaviour studies in particular (Chow and Chan 2008). This is owing to the importance of the issue and its direct interaction with a wide variety of organisational factors that impact an organisation’s performance and development, as well as its capacity to fulfil its objectives successfully (Sadq et al. 2020). Thus, trust is defined as an individual’s belief in the organisation’s goals, choices, and policies, which reflects the individual’s contentment and commitment to the organisation (Cheng et al. 2020). Previous surveys suggested that an organisation could not function without trust among its employees, and managers cannot overlook the importance of trust in the business (Ashrafi et al. 2020). Thus, organisational trust is a critical component for the expansion of human property among organisations and lenders, organisations and producers, customers, and internal trustees (Ahmed et al. 2019).
Numerous definitions exist for trusting a person, products/services, or organisations (Chow and Chan 2008). These can subjectively be regarded as general shared views, implying the informant make-up of the personal generalisations (Asiaei and Jusoh 2015). Therefore, the trust factor was mainly based on simplistic/common generalisations and faiths. The existing literature reports seldom addressed the establishment of such empirical generalisations. Mutual relationships are the significant constituents to develop the emotional capacities in teamwork, thereby relating to improved trust and performance (Paliszkiewicz and Koohang 2013). In this context, (Gu et al. 2014) argued that trust and collaborative associations among group members could promote much better innovation performance. To summarize, trust is essential for inter-organisational collaboration and cooperation (Dumay et al. 2019).

3. Human Capital

Value in today’s world, and especially in the knowledge-based economy, is largely focused on the quality of human capital (Cuozzo et al. 2017). Moreover, Human capital has been suggested to be the most important factor in an organization’s value generation (Osorio et al. 2015). Human stocks such as skills, attributes, and competences have been the focus of previous research on human capital. Human capital may be thought of as the intangible assets that have dominated debates in the field of accounting for the better part of two decades. Intangible assets have presented several difficulties for governments, organisations, and regulatory agencies (Hammad Ahmad Khan et al. 2016). According to (Hsu and Wang 2012), employee equity, safety, relations, and wellbeing are all aspects of human capital that should be developed and nurtured. Human capital has been defined in several ways; for example, (Daou et al. 2014) it is all the knowledge, productivity, skills, values, expert networks, and professional teams that an organisation has.
In this context, (Massaro et al. 2015) stated that the human capital could be formed by the talents, competencies, experiences and skills of the internal members of an organisation. In addition, the human resources are crucial for the creation of human capital because the organisations do not create knowledge otherwise (Isanzu 2017). Thus, the organisations can increase their human capital by attracting individuals with high skills from the external labour market and via the internal development of the skills of their current members (Berezinets et al. 2016). However, (Palazzi et al. 2020) asserted that an organisation with a high human capital in terms of education or skills is likely to have better entrepreneurial judgment. It was inferred that as long as human capital continues developing, the employees can improve their job performance and eventually enhance the performance of the organisation (Massaro et al. 2015). Based on the aforementioned facts, it can be concluded that the human capital forms the heart of the intellectual capital.

4. Structural Capital

For the purposes of this article, “structural capital” will be taken to mean the “systems and configurations of an organisation that enable to build up greater productivity of the personnel,” as described by (Slaðana Cabrilo and Dahms 2018). In addition, The infrastructure assets and the codified information (such records, databases, and intellectual property rights) that shape up the framework of the organisation for future sustenance are both included in the structural capital (Buenechea-Elberdin 2017). This research basically linked the ideas of network characteristics and standardised information dissemination inside an organisation to the concept of structural capital (Khalique et al. 2018). However, as pointed out by (Kaya and Erkut 2017) structural capital is the means to add efficiency to human capital in order to accomplish organisational performance since it owns intellectual property, which is crucial to the growth of any organisation.
In effect, structural capital equips human capital with means to pursue novel possibilities (Chowdhury et al. 2018). The expression of human capital in an organization’s operations is facilitated by its unique culture, which in turn is largely due to its structural capital (Hammad Ahmad Khan et al. 2016). When an organization’s employees have access to a centralised database of useful information, called the “knowledge directory,” their talents can grow to their full potential (Turner et al. 2013). Information flows that underpin established structures and processes, as stated by (Vladu et al. 2017). They are expected to adhere to predetermined standards. As a result, there is a build-up of knowledge that is fundamental to structural capital but which must be used in a predetermined fashion by (Budiarti 2017). Yet again, structural capital provides an environment that enables the organisations to create and leverage knowledge (Benevene et al. 2017). Conversely, an organisation with a strong structural capital has a supportive culture that encourages its employees to try to learn new knowledge, thereby moving many steps ahead towards improved performance (Xu and Wang 2018).

5. Relational Capital

The ability of an organisation to maintain a positive affiliation/union network with its partners is referred to as its “relational capital” (Bogdan et al. 2017). Another definition of relational capital is the intangible assets based on the formation, maintenance, and promotion of high-quality connections with any firm, people, or group that affects the organization (Hsu and Wang 2012). Such capital arises when workers share their insights and experiences with one another inside an organization (Elsetouhi et al. 2015), fuelling a cycle of ongoing adaptation and development (Lamond et al. 2010). Based on the aforementioned facts, (Sladjana Cabrilo et al. 2018) draw on this background to define relational capital as the integration of all the relationships within an organisation, which can include internal relations between management and employees and between employees, as well as external relations with stakeholders such as customers, suppliers, and research and development bodies, as well as the government.
In the healthcare and pharmaceutical industries, relational capital is most valuable when it is used to successfully implement and manage programmers that ensure patients make a full recovery (Lardo et al. 2017). What this means is that the medical centre will lose relational capital when patients become dissatisfied with the therapy and abandon it owing to its length and the unpleasantness of its side effects. It is possible that the resources that might be used through the connections under evaluation have quite different features of relational capital (Černe and Etinger 2017). Improvements in the organization’s relational capital reflect the calibre of its members and the depth of communication between them (Bontis et al. 2018). Multiple relational capital studies have concluded that companies benefit from actively engaging their most loyal consumers (Al-Jinini et al. 2019). These considerations led to the study’s hypothesis that relational capital has a beneficial effect on innovation performance.

6. Social Capital

The term “social capital” is used to describe a resource that helps keep communities safe while also giving businesses more say in their operations (Allameh 2018). Another definition of social capital offered by (Nahapiet and Ghoshal 1998) that “it is the sum of the real and potential resources inherent within, available via, and derived from the network of relationships owned by an individual or social unit” (p. 13). Additionally, the term “social capital” is used to describe the aggregate of real and potential assets linked to the set of interpersonal ties represented by a given social unit (Salicru and Perryer 2007). According to a number of studies, social capital is crucial to any business’s ability to thrive in today’s cutthroat marketplace (Bolino et al. 2002; Shipilov and Danis 2006). Knowledge sharing, competitive advantage enhancement, organisational performance enhancement, value generation, and general organisational growth are all aided by a healthy dose of social capital (Ibrahim 2019; Stacchezzini et al. 2019). A variety of models have been created to describe the organisational idea of social capital and its many facets (Manes Rossi et al. 2016).
Researchers have shown that an organization’s social capital grows when members share tacit and explicit information with one another through a variety of internal networks, leading to increased innovation and competitive advantage (Nevado et al. 2018). In order to build norms and values inside an organisation that promote healthy interactions, encourage the extension of connections, and increase partnerships among employees, it is essential to invest heavily in the development of the organization’s social capital (Christensen and Kowalczyk 2017). Several studies have found that firms with high levels of social capital have higher rates of innovation (Asiaei et al. 2020). To facilitate communication and cooperation among employees and with external communities and enterprises, social capital is essential (García Lirios 2020).


  1. Peters, Thomas J., and Robert H. Waterman. 1982. In Search of Excellence: Lessons from America’s Best-Run Companies. Journal of Accountancy 156: 150.
  2. Henri, Jean-Francois François. 2006. Organizational Culture and Performance Measurement Systems. Accounting, Organizations and Society 31: 77–103.
  3. Dombrowski, Caroline, Jeffrey Y. Kim, Kevin C. Desouza, Ashley Braganza, Sridhar Papagari, Peter Baloh, and Sanjeev Jha. 2007. Elements of Innovative Cultures. Knowledge and Process Management 14: 190–202.
  4. Stewart, Thomas A. 1997. Intellectual Capital: The New Wealth of Organizations. New York: Bantam Doubleday Dell Publishing Group, Inc.
  5. Kim, Taesung, and Jihyun Chang. 2019. Organizational Culture and Performance: A Macro-Level Longitudinal Study. Leadership & Organization Development Journal 40: 65–84.
  6. Berezinets, Irina, Tatiana Garanina, and Yulia Ilina. 2016. Intellectual Capital of a Board of Directors and Its Elements: Introduction to the Concepts. Journal of Intellectual Capital 17: 632–53.
  7. Berson, Yair, Shaul Oreg, and Taly Dvir. 2008. CEO Values, Organizational Culture and Firm Outcomes. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior 29: 615–33.
  8. Chow, Wing S., and Lai Sheung Chan. 2008. Social Network, Social Trust and Shared Goals in Organizational Knowledge Sharing. Information & Management 45: 458–65.
  9. Sadq, Zana Majed, Brwa Sardar Ahmad, V. S. Saeed, Bestoon Othman, and H. O. Mohammed. 2020. The Relationship between Intellectual Capital and Organizational Trust and Its Impact on Achieving the Requirements of Entrepreneurship Strategy (The Case of Korek Telecom Company, Iraq). International Journal of Advanced Science and Technology 29: 2639–53.
  10. Cheng, Yuan, Zhongsheng Wu, Vineeta D. Sharma, Divesh S. Sharma, Umapathy Ananthanarayanan, Edy Suprianto, and Suwarno Suwarno. 2020. Client Importance and Earnings Management: The Moderating Role of Audit Committees. Iranian Journal of Finance 30: 125–56.
  11. Ashrafi, Majid, Ebrahim Abbasi, Seyed Ali Hosseini, and Mahjoobeh Poor Etemadi. 2020. The Effect Of Related Parties Transactions On The Firm Value: Moderating Role Of Audit Committee. Iranian Journal of Finance 3: 25–43.
  12. Ahmed, Abdelmuttlib Ibrahim Abdalla, Siti Hafizah Ab Hamid, Abdullah Gani, and Muhammad Khurram Khan. 2019. Trust and Reputation for Internet of Things: Fundamentals, Taxonomy, and Open Research Challenges. Journal of Network and Computer Applications 145: 102409.
  13. Asiaei, Kaveh, and Ruzita Jusoh. 2015. A Multidimensional View of Intellectual Capital: The Impact on Organizational Performance. Management Decision 53: 668–97.
  14. Paliszkiewicz, Joanna, and Alex Koohang. 2013. Organizational Trust as a Foundation for Knowledge Sharing and Its Influence on Organizational Performance. Online Journal of Applied Knowledge Management 1: 116–27.
  15. Gu, L., J. Wang, and B. Sun. 2014. Trust Management Mechanism for Internet of Things. China Communications 11: 148–56.
  16. Dumay, John, Matteo La Torre, and Federica Farneti. 2019. Developing Trust through Stewardship. Journal of Intellectual Capital 5: 1–17.
  17. Cuozzo, Benedetta, John Dumay, Matteo Palmaccio, and Rosa Lombardi. 2017. Intellectual Capital Disclosure: A Structured Literature Review. Journal of Intellectual Capital 18: 9–28.
  18. Osorio, Arturo E., Banu Ozkazanc-Pan, and Paul F. Donnelly. 2015. An Entrepreneurial Context for the Theory of the Firm: Exploring Assumptions and Consequences. New England Journal of Entrepreneurship 18: 71–85.
  19. Hammad Ahmad Khan, Hafizah, Mahazril Aini Yaacob, Hussin Abdullah, and Siti Hajar Abu Bakar Ah. 2016. Factors Affecting Performance of Co-Operatives in Malaysia. International Journal of Productivity and Performance Management 65: 641–71.
  20. Hsu, Li Chang, and Chao Hung Wang. 2012. Clarifying the Effect of Intellectual Capital on Performance: The Mediating Role of Dynamic Capability. British Journal of Management 23: 179–205.
  21. Daou, Alain, Egide Karuranga, and Zhan Su. 2014. Towards a Better Understanding of Intellectual Capital in Mexican SMEs. Journal of Intellectual Capital 15: 316–32.
  22. Massaro, Maurizio, John Dumay, and Carlo Bagnoli. 2015. Where There Is a Will There Is a Way: IC, Strategic Intent, Diversification and Firm Performance. Journal of Intellectual Capital 16: 490–517.
  23. Isanzu, Janeth N. 2017. The Relationship Between Intellectual Capital and Financial Performance of Banks in Tanzania. Journal on Innovation and Sustainability 7: 28.
  24. Palazzi, Federica, Francesca Sgrò, Massimo Ciambotti, and Nick Bontis. 2020. Technological Intensity as a Moderating Variable for the Intellectual Capital–Performance Relationship. Knowledge and Process Management 27: 3–14.
  25. Cabrilo, Slaðana, and Sven Dahms. 2018. How Strategic Knowledge Management Drives Intellectual Capital to Superior Innovation and Market Performance. Journal of Knowledge Management 22: 621–48.
  26. Buenechea-Elberdin, Marta. 2017. Structured Literature Review about Intellectual Capital and Innovation. Journal of Intellectual Capital 18: 262–85.
  27. Khalique, Muhammad, Nick Bontis, Jamal Abdul Nassir Bin Shaari, Mohd Rafi Yaacob, and Rohana Ngah. 2018. Intellectual Capital and Organisational Performance in Malaysian Knowledge-Intensive SMEs. International Journal of Learning and Intellectual Capital 15: 20–36.
  28. Kaya, Tugberk, and Burak Erkut. 2017. Tacit Knowledge for Strategic Advantage: Social Media Use of Employees in the Financial Sector. Paper present at the European Conference on Knowledge Management, ECKM 1, Barcelona, Spain, September 7–8; pp. 516–23.
  29. Chowdhury, Leena Afroz Mostofa, Tarek Rana, Mahmuda Akter, and Mahfuzul Hoque. 2018. Impact of Intellectual Capital on Financial Performance: Evidence from the Bangladeshi Textile Sector. Journal of Accounting and Organizational Change 14: 429–54.
  30. Turner, N., J. Swart, and H. Maylor. 2013. Mechanisms for Managing Ambidexterity: A Review and Research Agenda. International Journal of Management Reviews 15: 317–32.
  31. Vladu, Alina Beattrice, Oriol Amat, and Dan Dacian Cuzdriorean. 2017. Truthfulness in Accounting: How to Discriminate Accounting Manipulators from Non-Manipulators. Journal of Business Ethics 140: 633–48.
  32. Budiarti, Isniar. 2017. Knowledge Management and Intellectual Capital-A Theoretical Perspective of Human Resource Strategies and Practices. European Journal of Economics and Business Studies 3: 148–55.
  33. Benevene, Paula, Eric Kong, Barbara Barbieri, Massimiliano Lucchesi, and Michela Cortini. 2017. Representation of Intellectual Capital’s Components amongst Italian Social Enterprises. Journal of Intellectual Capital 18: 564–87.
  34. Xu, Jian, and Binghan Wang. 2018. Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry. Sustainability 10: 4651.
  35. Bogdan, Victoria, Claudia Diana Sabău Popa, Mărioara Beleneşi, Vasile Burja, and Dorina Nicoleta Popa. 2017. Empirical Analysis of Intellectual Capital Disclosure and Financial Performance—Romanian Evidence. Economic Computation and Economic Cybernetics Studies and Research 51: 125–43.
  36. Elsetouhi, Ahmed, Ibrahim Elbeltagi, and Mohamed Yacine Haddoud. 2015. Intellectual Capital and Innovations: Is Organisational Capital a Missing Link in the Service Sector? International Journal of Innovation Management 19: 1550020.
  37. Lamond, David, Yi-Chun Huang, and Yen-Chun Jim Wu. 2010. Intellectual Capital and Knowledge Productivity: The Taiwan Biotech Industry. Management Decision 48: 580–99.
  38. Cabrilo, Sladjana, Aino Kianto, and Bojana Milic. 2018. The Effect of IC Components on Innovation Performance in Serbian Companies. VINE Journal of Information and Knowledge Management Systems 48: 448–66.
  39. Lardo, Alessandra, John Dumay, Raffaele Trequattrini, and Giuseppe Russo. 2017. Social Media Networks as Drivers for Intellectual Capital Disclosure: Evidence from Professional Football Clubs. Journal of Intellectual Capital 18: 63–80.
  40. Černe, Ksenija, and Darko Etinger. 2017. IT as a Part of Intellectual Capital and Its Impact on the Performance of Business Entities. Croatian Operational Research Review 7: 389–408.
  41. Bontis, Nick, Massimo Ciambotti, Federica Palazzi, and Francesca Sgro. 2018. Intellectual Capital and Financial Performance in Social Cooperative Enterprises. Journal of Intellectual Capital 19: 712–31.
  42. Al-Jinini, Dina Khalid, Samer Eid Dahiyat, and Nick Bontis. 2019. Intellectual Capital, Entrepreneurial Orientation, and Technical Innovation in Small and Medium-Sized Enterprises. Knowledge and Process Management 26: 69–85.
  43. Allameh, Sayyed Mohsen. 2018. Antecedents and Consequences of Intellectual Capital: The Role of Social Capital, Knowledge Sharing and Innovation. Journal of Intellectual Capital 19: 858–74.
  44. Nahapiet, Janine, and Sumantra Ghoshal. 1998. Social Capital, Intellectual Capital, and the Organizational Advantage. Academy of Management Review 23: 242–66.
  45. Salicru, Sebastian, and Chris Perryer. 2007. Intellectual Capital and Company Performance—Literature Review and Research Opportunities in Australia. Paper present at the 21st Annual Australian and New Zealand Academy of Management Conference, Sydney, Australia, January 1–19.
  46. Bolino, Mark C., William H. Turnley, and James M. Bloodgood. 2002. Citizenship Behavior and the Creation of Social Capital in Organizations. Academy of Management Review 27: 505–22.
  47. Shipilov, Andrew, and Wade Danis. 2006. TMG Social Capital, Strategic Choice and Firm Performance. European Management Journal 24: 16–27.
  48. Ibrahim, Sardar S. H. H. 2019. The Impacts of Capital Structure on Bank Performance. Koya University Journal of Humanities and Social Sciences 2: 118.
  49. Stacchezzini, Riccardo, Cristina Florio, Alice Francesca Sproviero, and Silvano Corbella. 2019. An Intellectual Capital Ontology in an Integrated Reporting Context. Journal of Intellectual Capital 20: 83–99.
  50. Manes Rossi, Francesca, Francesca Citro, and Marco Bisogno. 2016. Intellectual Capital in Action: Evidence from Italian Local Governments. Journal of Intellectual Capital 17: 696–713.
  51. Nevado, Bruno, Natalia Contreras-Ortiz, Colin Hughes, and Dmitry A Filatov. 2018. Pleistocene Glacial Cycles Drive Isolation, Gene Flow and Speciation in the High-elevation Andes. New Phytologist 219: 779–93.
  52. Christensen, Bent Jesper, and Carsten Kowalczyk. 2017. Globalization: Strategies and Effects. Globalization: Strategies and Effects 4: 1–617.
  53. Asiaei, Kaveh, Omid Barani, Nick Bontis, and Maryam Arabahmadi. 2020. Unpacking the Black Box: How Intrapreneurship Intervenes in the Intellectual Capital-Performance Relationship? Journal of Intellectual Capital 21: 809–34.
  54. García Lirios, Cruz. 2020. Specification a Model for Study of Intellectual Capital. Behavior Studies in Organizations 3: 1–4.
Subjects: Business, Finance
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to : ,
View Times: 353
Revisions: 2 times (View History)
Update Date: 13 Mar 2023
Video Production Service