Overall, from inception, this study sought to undertake a practicable research endeavour that would enquire on the management of intellectual capital in the retaining of organisational competitive advantages. This was to be done through the collection and analysis of both primary and secondary data. In the growing knowledge economy, the value of intangible assets can no longer be ignored. The term “intangible assets” being a broadly umbrella term encapsulating several inherent variables necessitated this research to constrict its focus to be inclusive of only the intellectual capital elements of this broad term. As has been presented in Chapter 1, the research sought to determine the extent to which the strategic management of intellectual capital was being pursued as a source of competitive advantage within the participant institution in the banking and financial services sector in Zimbabwe. The study to a greater extent sought to convey the varying perspectives into the need for improved strategic thinking on matters surrounding the management of intellectual capital. The research captured the perceptions and managerial insights from within a financial services institution on the management of intellectual capital as a source of competitive advantage.
The research also captured the insights from the non-managerial members of staff from within the institution. This capturing of perspectives was from inception designed to best capture an exploratory perspective as opposed to a “cause and effect” viewpoint. The models and frameworks for measuring IC assets have been addressed in Chapter 2 and the challenges underscored. Following from “the resource based view” on strategy, the essence of strategy lies in being able to exploit the strategic capability of the firm by harnessing its resources and competences to give the organisation that competitive advantage and/or yield fresh opportunities.
In offering a conclusion to the research undertaking, its theoretical abstractions as offered in Chapter 2, its methodology as presented in Chapter 3 and its findings and discussions as presented in Chapter 4 and Chapter 5, it is important to give recommendations by first restating the research questions as they were presented in Chapter 1 and highlight were there may be room for improvements within the participant institution.
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How does the institution under study define intellectual capital as a competitive strategy tool?
The institution does not have an express definition for the term intellectual capital and the management of intellectual capital is at best being performed with little or no planning. It was noted however from the findings that the organisation to a large extent positively perceives its intangible assets of value. It would hence be prudent if senior management would put into place express intellectual strategies to better manage their intangible assets.
Does this institution have a strategy for the management of its intellectual capital, if so, what is the nature of such strategy?
The in-depth interview findings and inferences illustrate the institution as not having a strategy for the management of its intellectual capital. As has been highlighted in literature, like in so many other business organisations, the management of intellectual capital is at best being conducted ad hoc. It would be recommended that the senior management put together a clear strategic framework for investing in intellectual capital and build on acquiring competitive advantage from their intangible assets.
To what extent is the bank management addressing the constructs of intellectual capital (namely human, structural and relational capital) as presented in the standard intellectual capital models in the management of their IC?
Bank management is largely addressing the constructs of intellectual capital as alluded in the intellectual capital models presented in Chapter 2. The general narrative reflects that there is low employee turnover and high satisfied employee index as evidenced by the proportion of satisfied employees from the questionnaire responses. The bank has a high leadership index (as evidenced by the proportion of managers with advanced degrees) and there is acknowledgement of human capital being addressed as key in the organisation’s competitive strategy.
How does the organisation replicate its IC strategies to retain long term competitiveness?
The organisation replicates its IC strategies through good employee hires, the engagement in training programs for its employees and through the documentation of trends and work processes. This allows the organisation to retain long term competitiveness as it allows organisational learning. There is evidence of the banking institution placing importance on
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the external relationships that it has with such external stakeholders as investors, customers, creditors, suppliers among others. This to a large extent can be construed as evidence of the organisation seeking to retain long term competitiveness.
What are the challenges faced by the financial institution with regards to measurement components of intellectual capital?
One prevalent challenge faced by the financial institution with regards to the measurement components of intellectual capital is the lack of a standard unit of measurement for such. The other key challenge lies around the conceptual confusion over terms like ‘intellectual capital’,
‘knowledge management’ and these may tend to threaten many strategic initiatives around such. It would be commendable for the organisation to design its own intellectual capital metrics and knowledge management systems and allow the organisation to create its own distinct metrics for measurement of their intangible assets based on their perceived importance. That way since the organisation would have facilitated the measurement of its intangible assets, it would be better positioned to utilise these and further retain competitive advantages.
From the findings agglomerated in this research undertaking, it is a plausible conjecture to infer that intellectual capital may be appropriated by knowledge intensive institutions in fostering retained competitive advantages and that intellectual capital management is of paramount importance as a success strategy into the future. Managers will however need to be ready and willing to equip themselves with the understanding of the peripheral components of the intellectual capital within their organisations, and advance management practices that advocate for the “harvesting of knowledge”. Firer (2003:166) states that to begin the effective management of intellectual capital it is imperative for management to start by recognising that intangible assets are no less valuable than the tangible assets. The bottom line is that to a greater extent, intellectual capital management is an operable and plausible strategic management tool towards business excellence. The main challenge within the institution under study, as would be with most institutions would be the lacking knowledgeability of “intellectual capital” as a singular business concept of importance evidenced by the varying and somewhat inconsistent definitions presented by the respondents in the in-depth interviews.
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