The distribution of knowledge around the world varies significantly with developed countries possessing most of the world's current intellectual capital (IC) compared to developing countries. Most IC research has been conducted in a variety of international settings such as the UK, Scandinavia, Australia, Canada, Austria, Malaysia, the USA, and Ireland. However, no empirical research has been conducted at the organizational level in the field of IC in Arab countries. These nations are socially, economically, and culturally different from most countries in the aforementioned list. This study describes the IC in Egyptian software firms. The study's objective is to contribute to the IC theory development by building a measurement system in an unique context. This paper highlights the key IC indicators as reported by Egyptian CEOs. Ultimately, the resultant report provides them with a direction for building a strong knowledge base for future IC development.
IntroductionWith the emergence of the knowledge-based economy, we have witnessed many changes in the nature of work and the demands placed on organizations to become the storehouses of innovation, nourishing and sustaining wellsprings of talent. The knowledge-based economy has provided us with new notions of globalization (i.e. borderless economies) and new models for firms (i.e. networked learning organizations). These emergent trends have a great influence on management research and require new approaches for investigation. Over four decades back, Penrose (1959) looked at the firm as a repository of knowledge and experience and argued that knowledge is the critical factor in explaining the growth of firms. More recently, intellectual capital (IC) is considered as the critical antecedent for the sustained performance of a firm