The strategic importance of intellectual capital in the non‐profit sector

Abstract

Purpose -This paper aims to examine five key strategic management concepts: industrial organisation (I/O), resource-based view (RBV), knowledge-based view (KBV), balanced scorecard (BSC) and intellectual capital (IC) within the non-profit context and to determine which is most applicable in the non-profit sector. Design/methodology/approach -This paper reviews the above concepts in the light of the unique non-profit environment. Findings -The IC concept is more effective compared with other strategic management concepts within the non-profit context. IC is an important resource that non-profit organisations need to develop in order to gain sustained strategic advantage. Research limitations/implications -This paper helps to build a nascent body of literature suggesting that the concept of IC is the most effective strategic management concept in NPOs. The increased awareness of the IC concept in the sector, as a result of this paper, is likely to generate further research from both non-profit practitioners and scholars. Originality/value -Very little systematic research has reviewed the applicability of strategic management concepts within the non-profit context. The paper acts as the first attempt to fill this gap.

Barriers to knowledge sharing in third sector social care: a case study

“…However, there are considerable hurdles to managing knowledge in TSOs, including: high turnover of staff and transient nature of volunteer workers (Hume and Hume, 2008;Ragsdell, 2013); lack of operational maturity (Hume and Hume, 2008); lack of opportunity to plan strategically (Ragsdell, 2013); and altruistic organisational objectives vying with competitive organisational objectives (Kong, 2007;Hume and Hume, 2008;Kong, 2010). These barriers are not reflected in Riege's list, which focuses on the for-profit environment.…”

“…However in SSNFPOs there is a careful balancing act between satisfying funding agencies and satisfying service recipients (Kong, 2010) in addition to the danger of reinventing the wheel, where each SSNFPO is not only developing their own KM programme, but is separately working on the social issue which is the goal of the organisation rather than pooling resources (Kong, 2007;Kong, 2010;Stauss, 2007). It is suggested that collaboration, rather than reducing competitive advantage, could aid organisations and sharing of resources and mutual learning could lead to real benefits not simply for individual organisations but for the overall mission of the SSNFPO (Kong, 2010).…”

Comparative Evaluation of National Intellectual Capital Measurement Models

“…Intellectual capital evaluation in the third sector is perfor med in separate social enterprises. Some scholars (Bronisz et al 2012;Guthrie et al 2009;Najafbagy et al 2014;Kong 2007) have investigated intellectual capital in nonprofit organizations and ways how it could be measured and ma naged. Nevertheless in NIC research the perspective of the third sector (e.g.…”

Introducing the Intellectual Capital Interplay Model: Advancing Knowledge Frameworks in the Not-for-Profit Environment of Higher Education

“…Kong's (2007a) work in understanding the strategic importance of IC in not-for-profits provides a valuable framework for understanding how areas of held knowledge may impact higher education institutions. Drawing upon a wealth of prior research, Kong (2007a) approaches the notion of IC in the context of a NFP by clearly identifying three forms of capital which impact the life and functionality of NFP organizations: Human Capital, Structural Capital, and Relational Capital (Figure 1). Human capital contains various human resource elements including, expertise, competencies, experience, and skills (Skaggs & Youndt, 2004;Kong, 2007a).…”

“…Drawing upon a wealth of prior research, Kong (2007a) approaches the notion of IC in the context of a NFP by clearly identifying three forms of capital which impact the life and functionality of NFP organizations: Human Capital, Structural Capital, and Relational Capital (Figure 1). Human capital contains various human resource elements including, expertise, competencies, experience, and skills (Skaggs & Youndt, 2004;Kong, 2007a). Structural capital addresses knowledge lived out in day-to-day activities of an organization which ought to remain in the organization beyond its personnel.…”