Performance Impact of Intellectual Capital: A Study of Indian it Sector

Choudhury, Jyotirmayee
September 2010
International Journal of Business & Management;Sep2010, Vol. 5 Issue 9, p72
Academic Journal
Intellectual capital can be defined as the 'economic value' of three categories of intangible assets of a company-that includes human capital, organisational capital and social capital collectively. Sustained advantage can occur only in the situations in which physical, human, and organisational capital varies across the firms and where some firms may be unable to obtain necessary resources that are benefiting other firms. Intellectual capital is viewed as a sub-set of intangible capital, where the term intangible relates to assets without physical existence and capital refers to assets retained by the organisation to contribute to future profits. Intangible resources are more likely to produce a competitive advantage because they often are rare and socially complex there by making them difficult to imitate. A company's intangible assets are increasingly crucial and positively related to organisational performance in today's knowledge economy.


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