Analysing intellectual capital management and growth based on dynamic modelling

The management of intellectual capital (IC) resources increases organizational value creation capacities. The aim of this study is to present an algorithm for analysing IC management with an emphasis on the recognition and modelling of growth mechanisms for strategic resources. Intensive interactions among different tangible and intangible assets turn organizations into complex systems of highly interrelated resources; therefore, a systems approach is adopted, and a causal loop diagram is used to model resource interaction feedback structures. The development and analysis of the resource interactions model is explained through a practical algorithm that reveals different dimensions of resource deployment, including the potential value of resources, utilization of resources in key business processes, and mechanisms responsible for the sustained growth of strategic resources. The proposed algorithm was used to examine a telecommunication company. We show that there are no growth mechanisms for certain strategic resources. To activate the growth of such strategic resources, several feedback loops are recognized and related initiatives are proposed.