TITLE

Structuring Intellectual Capital as an Element of Virtual Organization in the SME Clusters

AUTHOR(S)
Muhammd, Yasir; Abdul, Majid; Iftikhar, Ahmad; Naila, Tabassum
PUB. DATE
September 2011
SOURCE
International Proceedings of Economics Development & Research;2011, Vol. 19, p175
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The purpose of this paper is to explore the intellectual capital as an element of virtual organization in the SME clusters. Effective organization and management of intellectual capital is particularly required for the SMEs in clusters joining together to form a virtual relationship. It could work alongside the other important elements of virtual organization, like effective communication, collaboration, and trust, to overcome the resource constraints of SMEs. The geographical proximity of SMEs in clusters reinforces the role of intellectual capital in a virtual organization. The sharing of optimal intellectual capital among the geographically proximate members of a virtual organization is ensured by the use of social forces. This is a conceptual research paper that takes up 'structuring' as a methodology to develop models that provide an insight into the role of intellectual capital in the effectiveness of a virtual organization. No earlier research has specifically explored the role of intellectual capital as an element of virtual organization; therefore, this research establishes the theoretical foundations for further empirical research in this area. Intellectual capital as an element of virtual organization in the SME clusters could act to achieve the organizational performance objectives. The proposed model of virtual organization in this paper, signifying the sharing of intellectual capital by the SMEs in clusters, could make their activities more effective and competitive.
ACCESSION #
74390273

 

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