Questions and Answers on Intellectual Capital, KM Systems, and Absorptive Capacity - Paper Example

aExplain the differing conceptions and frameworks of intellectual capital

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It is highly volatile and has no universally accepted definition. Intellectual capital also creates intangible risks for shareholders and investors. Several Frameworks were proposed by Sullivan, Petrash, Brooking, Edussion and Mallone, and Lowendahl.

bEvaluate the need to have non-financial measures of intellectual capital to supplement traditional financial measures.

Market to book value of a company with intellectual capital is often higher as compared to that of traditional firms. Also, companies with intellectual capital are more financially stable than those that apply traditional financial practices only.

cHow to apply concepts of intellectual capital in practice

Intellectual capital starts by the identification of reliable and best approaches to deal with human resource management. The concepts must be applied at an organizational level to ensure that they maximize the competitive advantage of the company.

dHow to appreciate the different aspects of intellectual property such as patents and copyrights.

Ensure that one does not breach the copyright rules by distributing, reproducing or using without permission of any copyrighted materials. Also, patented goods can only be produced by the particular manufacturer for a period not less than 20 years.

eAre intellectual capital accounts likely to help a firm gain competitive advantage and how can they enable a firm to critically review its practices and processes?

Intellectual capital enables firms to gain competitive advantages. In one instance, the IP gives the organization a monopoly status where it is the only one with the rights to produce certain goods or provide particular services.

fWhat aspects of Knowing how and knowing that can be reliably measured to be meaningful for an organization and its external stakeholders?

Aspects of knowing how to utilize organizational resources, how to apply the limited resources and knowing that resources are limited and deplete quickly, knowing that the organization must apply effective KM strategies for it to be successful.

gHow can intellectual capital accounts be produced using existing organizational processes. If new processes are needed, what form should they take?

IP accounts are produced using the prevailing organizational processes through the application of structural, human, and relational capital. The skills and experiences of the organization can also be utilized to develop new processes in the long-run.

hHow can a firm strategically manage its intellectual property?

First, it is important to ensure that the management of the Intellectual Property (IP) is not left on the hands of senior managers only. For a firm to manage its IP strategically, it must incorporate the use of technology as well as the opinions of other employees who are not ideally in the senior management level.

iExplain the implications of intellectual capital measurement and reporting on strategic development.

Intellectual capital must ensure to develop strategic development for it to be effective. The reason being that without the proper strategic development strategies, intellectual capital will be of no benefits to the organization.

jHow to recognize the implications of knowledge management systems and communities of practice on organizational and human capital.

Recognizing the effects of KM systems entails the assessment of how the intellectual capital is obtained and managed within the organization. Organizations must be proactive in ensuring that they protect their intellectual capital.

KExplain the differences between the industrial organization tradition and the institutionalism perspective in strategic thinking.

Industrial organization tradition entails running the firm in a different manner such as making sure that only the decision of the senior managers are considered. On the other hand, instituionalist approach ensures that everyone is given the chance to give their opinions.

LWhat is resource-based view and what is knowledge-based view of the firm to strategic management.

The resource-based perspective tries to expound on the firms identity and is also concerned with nature and source of strategic abilities of the firm. Knowledge-based perspective considers companies to be generators, distributors, and integrators of knowledge. Both approaches try to address how a firm may strategically create a competitive market.

MDiscuss the development of IS strategy and its influence on KM strategies

The information system of any organization affects the Knowledge management strategies that the company undertakes. The IS strategy starts with the integration of various technological issues surrounding the firm. This integration will either positively or negatively affect the KM strategies of the firm.

NHow far do you plan a KM strategy or do you allow it to emerge through the everyday processes of organizational learning?

KM strategy should be allowed to emerge in the daily processes of the organization. The reason for the latter being that KM is a developmental approach that changes with the changes that occur in the organizations.

OWhat are the core competences of and organization and how do you exploit them of competitive advantage?

The core competencies of an organization are the strengths that make it emerge as competitively stronger than other firms within its industry. The organization must capitalize on the core competencies to grab the opportunities presented to the company hence developing a competitive edge.

PHow do you manage the conflicting interest of the IS/It department and HR department to develop a coherent knowledge management strategy?

Solving conflicts of interest begins by preventing private forms of interest by the top managers. Also, it is imperative to indicate any probable situation that may lead to the rise of conflicting interests between departments and take precautionary measures.

Q1Can Absorptive Capacity be brought onto the organization?

Yes. Absorptive capacity may be brought to an organization to facilitate proper adoption of technologies. The absorptive capacity has given organizations the capability to find innovative behaviors and improve the managerial inclination to changes. Managerial inclination to change is the extent to which managers are willing to adapt to the changes that affect their organization. Therefore, with absorptive capacity, the managers will know what to do when faced with complex changes in the organization especially those inclined towards information technology.

Q2How does Absorptive Capacity affect the organization?

Absorptive capacity aids an organization to adopt complex technologies which have, over time, been challenging many organizations. Absorptive capacity acts as an intermediary that bridges the gap between adoption of complex technology and meeting the commercial demands of the company. An organization can reap the benefits of viability and competitiveness after application of absorptive capacity. Also, since not many organizations are at the edge of innovativeness, absorptive capacity helps them to make the right judgment when adopting a particular innovation.

Q3Base on Passive and Explicit Knowledge

Explicit knowledge can be obtained from documents, either written or printed, and have been codified. This type of knowledge is easily transferrable among individuals. It has a challenge of sharing updated information to individuals. On the other hand, passive knowledge is gathered from observing and imitating the behavior of another individual. The latter may include learning another language. Unlike explicit knowledge, passive knowledge is gained from un-codified materials. However, it is evident that the two types of knowledge are shareable and transferrable among individuals.