“The only irreplaceable capital an organisation possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their competence with those who can use it.” Andrew Carnegie
1.1. RESEARCH BACKGROUND
Knowledge is being regarded as the new engine of organisation development and advancement. It has become one of the considerable platitudes of recent years. However no doubt, effective organisations have a tendency to be those that continuously innovate, depending on the skills and aptitudes of their employees rather than resources, for example, machinery or plants. Recently, there has been an emerging recognition that a company’s intangible resources act as a vital benefactor to its ability to secure a competitive edge. Knowledge-based intangibles are perceived to be integral to value creation. Such resources have progressively been alluded to by the term intellectual capital (IC). IC refers to a much more detailed array of assets
…show more content…
goodwill, brands, patents and so forth. Effective management of IC has been a constant challenge for any company’s management and is closely related with another current development, namely knowledge management. Stewart (1997) characterizes IC in terms of firm resources involving value creation through investment in knowledge, intellectual property,