An inductive typology of the interrelations between different components of intellectual capital

Abstract

Purpose

The purpose of this paper is to enhance knowledge of the full set of interrelations between IC components by providing an inductive typology of their strategic interactions.

Design/methodology/approach

To answer the research question the author conducted a content analysis of CEOs’ letters to shareholders published by 122 companies among the 200 first companies from the Fortune Global 500 from 2008 to 2012.

Findings

The results show that these three IC components interact with each other around the central position held by relational and structural capital and to a lesser extent human capital. Companies that have a positive evolution in the ranking focus significantly more on the structural capital while those who have a negative evolution in the ranking mention more the relational capital.

Research limitations/implications

The study is based on the CEOs’ letters that might limit the generalization of the findings. Nonetheless, this research highlights a full and fruitful set of interrelations between IC components providing a business practices-oriented typology.

Practical implications

This study provides deep insights into the interrelations between IC components that can significantly help managers to identify the strategic connections between IC dimensions.

Originality/value

This study contributes to the literature by expanding the actual academic classification of IC to five clusters of components. This research highlights that relational capital interacting with structural capital holds a central position in companies’ business strategy.

Citation

Albertini, E. (2016), "An inductive typology of the interrelations between different components of intellectual capital", Management Decision, Vol. 54 No. 4, pp. 887-901. https://doi.org/10.1108/MD-09-2015-0425