Intellectual Capital and Performance: A Case Study of Construction Companies

Abstract

Intellectual Capital Management is a key element for a company's development and value creation in achieving sustainable competitive advantage. Since intellectual capital is unique in the marketplace, companies retaining and transferring internally generated knowledge can face the external environment with more agility. Due to the importance of civil construction in the Portuguese economy, this exploratory research uses a case study methodology applied to construction companies in Portugal. The findings of this research evidenced that intellectual capital management influences the performance of construction companies. By recognising the importance of intellectual capital management and how it influences the performance of companies, it is possible to trigger a set of investments in human capital that will become structural capital through the transfer of their competencies and, finally, relational capital. Therefore, higher performances are achieved without losing the knowledge acquired over the years. This research can help to understand the importance of investing in intellectual capital management competencies in civil construction companies to leverage their competitive strategic development.

Conceptual Determinants of Development of Intellectual Capital of Construction Enterprises

“…At the same time, the authors of this article offer to ensure the development of the structural capital of construction enterprises as a complex of its components, empirically or with the use of mathematical modeling, selecting the quantity and quality of resources aimed at ensuring the development of the intellectual capital of a construction enterprise. In support of our proposed approach, Sucena, et al [42] presented the results of the research, according to which, on the example of construction companies in Portugal, it is proven that the management of intellectual capital affects the performance of construction companies, and investments in human capital ensure the growth of structural capital and, ultimately, relational capital.…”

Hologram of Firms with Respect to the Productive Fabric of a Region: A Case of Business Transformation through Knowledge Transfer in Medellín (Colombia)

“…In their study, Sucena et al (2022) emphasised firms' need for KM and KT, which drives them to implement strategies similar to those considered in our research, such as including the PD, the SD, and the ED.…”

“…Participation, for its part, influences the outcomes and decisions made (De Silva et al, 2022), reshaping the KM practices of actors (Sucena et al, 2022) in addressing challenges through the use of new MMs. KT generates new knowledge (Mazorodze & Buckley, 2020) that is transferrable to all members of an organisation, resulting in process innovation and transformation (Nonaka & Takeuchi, 1995).…”