Assessing intellectual capital creation in regional clusters

Abstract

To provide a theoretical model of the dynamics of intellectual capital creation in regional clusters and in inter-organizational networks. The model has been constructed on the basis of earlier studies, especially system's theoretical interpretation of organizations as knowledge systems, and then applied to the examination of a regional cluster operating in the mechanical wood processing industry in Eastern Finland. Intellectual capital in regional clusters is created by three main knowledge creation activities, each of which corresponds to a specific type of an inter-organizational network. First, production networks aiming at efficiency and replication should function according to mechanistic system logic, focusing on the enactment of rules and regulations. Development networks aiming at continuous incremental development, on the other hand, are most successful when adhering to an organic mode, which emphasizes participation, tacit knowledge sharing, dialogue and mutual adjustments. Finally, innovation networks seeking to produce new intangible assets benefit from a dynamic systems model, where entropy and spontaneous knowledge flows form the basis for mastering radical change. Model should be applied to more cases to ascertain its validity. Provides means for understanding, assessing and managing creation of knowledge-based value in inter-organizational collaboration. Addresses three gaps in existing research: it focuses on regional intellectual capital; it examines the ways in which intellectual capital is created as a dynamic process; it provides means for understanding the future potential of a region.

Intellectual Capital Management Enablers: A Structural Equation Modeling Analysis

“…Regarding intellectual capital and transfer of knowledge, Pöyhönen and Smedlund (2004) suggested that organizations are most successful when adhering to an organic mode, which emphasizes participation through dialogue. In a discussion about self-managed work teams, Thibodeaux and Faden (1994) found support for organic structures as fundamental for effective control and informational changes among the work group members.…”

“…Regarding knowledge intensive organizations, Horwitz et al (2003) concluded that trust, along with other variables, is essential for turning tacit knowledge to explicit knowledge, which is important in building both intellectual and social capital that is accessible by others in the organization. Trust has also been cited as a significant consideration with reference to the learning organization (Ferguson-Amores et al, 2005), for development networks with the purpose of sharing knowledge (Pöyhönen and Smedlund, 2004), and to allow employees to participate in decision making (Puč _ etait_ e and Lämsä, 2008). With this discussion in mind, we, therefore, offer the following hypothesis:…”

“…For example, Pöyhönen and Smedlund (2004), in a discussion regarding intellectual capital, linked the transfer of knowledge for the development of network members to activities such as sharing tacit knowledge, dialogue among participants, and mutual adjustments.…”

Value creation and business models: Refocusing the intellectual capital debate

“…Whilst there has been some recognition that synergies exist in operating categories of IC together, creating a 17 A Google Scholar advanced search on the phrase 'intellectual capital' plus the words 'dynamic' and 'capabilities' anywhere in the article did not result in 'hits' in many articles outside the management discipline (as at 4 July 2012). Pöyhönen & Smedlund (2004) make this link in a specialist IC journal, however the paper has not been highly cited. The IC book by also makes the link but again this book has not been widely cited.…”

Knowledge That Matters: Identifying Regional Knowledge Assets of the Tampere Region

“…During recent years the discussion on knowledge assets has gained popularity beyond the firm level -i.e., at the level of clusters (Pöyhönen & Smedlund, 2004;Hervas Oliver & Dalmau Porta, 2006), regions (Martins & Viedma, 2006;Schiuma et al, 2008) and nations (Bontis, 2004;Lin & Edvinsson, 2008;Ståhle & Bonfour, 2008;Stam & Andriessen, 2009). Regional knowledge assets can be defined as the common knowledge capabilities of regional stakeholders to implement strategies that aim at long-term sustainable development (Kozak, 2011).…”