Using intellectual capital as a strategic tool for non-profit organisations

Kong, Eric (2003) Using intellectual capital as a strategic tool for non-profit organisations. The International Journal of Knowledge, Culture and Change Management, 3 (1). pp. 467-474. ISSN 1447-9524

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Despite the ongoing development of strategic management research over the last few decades, there is a relative shortfall in the state of knowledge on strategy in the nonprofit sector. Non-profit organisations (NPOs) are distinct from for-profit organisations as they invest in people rather than in profits. For-profit strategic
management techniques that are brought to NPOs are often criticised for being ineffective in the sector. Consequently, the need for competent strategic management
in NPOs is urgently needed. One way of addressing this shortfall is to examine strategic management in NPOs through the lens of intellectual capital (IC). Encompassing three primary interrelated components named as human capital, structural capital and relational capital, IC promotes the creativity possessed by all organisational members to account for an organisation’s future non-financial prospects. This paper argues that IC allows NPOs to keep their values, identity and distinctiveness in the non-profit sector. Consequently, value would be added to
strategic decision-making processes in NPOs.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Individual chapters copyright © individual contributors 2003.
Faculty / Department / School: Historic - Faculty of Business - Department of Management and Organisational Behaviour
Date Deposited: 14 Feb 2010 05:10
Last Modified: 02 Jul 2013 23:39
Uncontrolled Keywords: non-profit organisations, NPOs, strategic management
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150312 Organisational Planning and Management
Socio-Economic Objective: C Society > 94 Law, Politics and Community Services > 9401 Community Service (excl. Work) > 940199 Community Service (excl. Work) not elsewhere classified

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