Organizational culture and intellectual capital: a new model
| Published date | 31 July 2007 |
| Pages | 409-430 |
| Date | 31 July 2007 |
| DOI | https://doi.org/10.1108/14691930710774849 |
| Author | Sandra M. Sánchez‐Cañizares,Miguel Ángel Ayuso Muñoz,Tomás López‐Guzmán |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Organizational culture and
intellectual capital:
a new model
Sandra M. Sa
´nchez-Can
˜izares, Miguel A
´ngel Ayuso Mun
˜oz and
Toma
´sLo
´pez-Guzma
´n
University of Cordoba, Cordoba, Spain
Abstract
Purpose – The purpose of this study is to examine the connection between the concepts of
organizational culture and intellectual capital to enable the proposal of a model to measure intellectual
capital. This model highlights culture as an essential component of intellectual capital.
Design/methodology/approach – The study begins with an analysis of the connection between
the concepts of organizational culture and intellectual capital. It then examines the principal models
that are used to measure intellectual capital, focusing on their structure and the location of culture. The
importance of this capital for organizations is emphasized.
Findings – The paper proposes a new model to measure intellectual capital. This model considers
culture as the central nucleus around which the remaining integrated capitals configure. The
importance of cultural capital is seen within organizations at two levels: the national culture; and the
culture of the organization. These are essential features, and give internal logic to the proposed model.
Originality/value – The models of measurement of intellectual capital lack an internal logic which
would synchronize the elements with the variables employed when characterizing intellectual capital
as a body. There is a tendency to consider each of the elements or capitals mentioned as independent,
without a nexus existing to connect them. This paper centres on the search for the stated internal logic
and for the consideration of culture as a key element in this. This gives a new focus to the role that is
played by the configuration of intellectual capital in each enterprise.
Keywords Organizationalculture, Intellectual capital,Modelling
Paper type Research paper
1. Introduction
This study examines the connection between the concepts of organizational culture
and intellectual capital to enable the proposal of a model to measure intellectual capital.
This model highlights culture as an essential component of intellectual capital.
First, the concept of culture is defined. Then we examine individually the principal
models that are used to measure intellectual capital, focusing on their structure and the
location of culture. Next, the importance of this capital for organizations is emphasized.
Finally, the proposed model is elicited and the established relationships between all the
components of intellectual capital are explained, using culture as the central nucleus.
2. Concept of organizational culture
Numerous definitions can be found in the specialised management literature for the
term “organizational culture”. However, there has not yet been any definition agreed by
consensus and commonly accepted by all authors. Therefore, this section tries to
gather together the most significant contributions to its conceptualisation and
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1469-1930.htm
Organizational
culture and IC
409
Journal of Intellectual Capital
Vol. 8 No. 3, 2007
pp. 409-430
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691930710774849
structure, with the objective of designing a reference mark that describes in a more
precise way what is understood as culture within a company.
The origins of the term are found in social anthropology, where it is defined by
Tylor (1871) as “that complex whole which includes knowledge, beliefs, art, morals,
law, custom and any other capabilities and habits acquired by man as a member of
society”.
In sociology, the term “organizational culture” is used to explain the differences
among managerial results in a qualitative way (Pettigrew, 1979). In the 1980s, the term
became related to the debate over tangible and intangible aspects, considering
organizational culture as the motor of the organization and defining it as “the values
shared by the members of the organization” (Peters and Waterman, 1982). From then
on, all authors have agreed that the identification of intangible aspects is a point of
cohesion in culture (Leal, 1991). In any case, as company culture (including corporate
culture) accounts for the installation and development of new strategies, its analysis is
essential (Bueno and Morcillo, 2003). In fact, for many companies, organizational
culture can end up being more valuable than its own tangible assets (Kaplan and
Norton, 2004). These authors also focus on the anthropological roots of the term,
defining it as “symbols, myths and rituals that form an integral part of the conscious or
subconscious mind of the group”.
In spite of the many existing contributions, there continues to be a gap in the
methodology regarding the relationship that it presents with the managerial
administration. From this point of view, some authors have developed instruments to
measure it.
A significant study was carried out by Deshpande
´et al. (1993), in which culture was
defined as “a pattern of shared values and beliefs that help individuals to understand
organizational functioning, and thus provide them with the norms for behaviour in the
organization” (Deshpande
´and Webster, 1989). They follow on to identify four cultural
archetypes in the employment of processes (from organic to mechanics) and focus of
the organization (internal or external). These are:
.culture type clan (organic and internal focus);
.adhocractic (organic and external focus);
.hierarchical (mechanic and internal focus); and
.market (mechanic and external focus).
Another relevant source is that of O’Reilly (1996). The employees classify 54
declarations of value according to the importance that they perceive culture has in their
company. Once the results are analyzed, it describes organizational culture with a high
level of reliability.
Equally important is the acknowledged study by Hofstede (1980). It proposes four
cultural dimensions:
(1) power distance;
(2) masculinity;
(3) individualism; and
(4) uncertainty avoidance.
JIC
8,3
410
To continue reading
Request your trial