Intellectual Capital and Knowledge Management Strategies on Performance

Both intellectual capital (IC) and knowledge management (KM) have been recognised as significant resources, when properly managed should enhance competitiveness, sustainability and performance. IC comprises the human, organisational and relational capital or resources. KM is about the ‘flow of knowledge’ from individual learning to organisational learning through KM processes to enhance organisational performance. As greater emphasis is placed on intangibles, resources such as knowledge and IC need to be properly monitored, managed and developed. Hence, both IC and KM are to be included into corporate strategies to enhance performance. The main objective of this paper is to explore the influence of IC and KM strategies on performance. A questionnaire survey was used as the main instrument to collect data from the public listed companies in Malaysia. It was found that incorporating both IC and KM into corporate strategies enhances the performance in the areas such as customer satisfaction, productivity per employee and market share of Malaysian companies.