Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-28T22:37:30.476Z Has data issue: false hasContentIssue false
  • English
  • Français

A qualitative analysis of intellectual capital in social service non-profit organisations: A theory–practice divide

Published online by Cambridge University Press:  02 February 2015

Eric Kong  and
Gaby Ramia
Eric Kong
Affiliation:
School of Management and Marketing, Faculty of Business, University of Southern Queensland, Toowoomba, QLD, Australia
Gaby Ramia
Affiliation:
Graduate School of Government, University of Sydney, Sydney, NSW, Australia
Get access Rights & Permissions [Opens in a new window]

Abstract

The paper contributes to debates on non-profit strategy, first by arguing that intellectual capital (IC) can be utilised as a non-profit strategic management conceptual framework and second by highlighting nuances in the meaning and significance of IC. In responding to the public management agendas of government, non-profit organisations (NPOs) have had to commercialise their strategies. On the basis of data from in-depth interviews with 35 senior non-profit managers across 22 large Australian social service non-profit organisations (SSNPOs), the analysis confirms that IC assists SSNPOs in managing the social–commercial divide, but that managers' understandings of the IC concept are often different to those contained in the IC literature. IC scholars suggest that IC is synergetic with its components being inter-dependent. The managers perceived that very few inter-relationships existed between IC components. Implications of the theory—practice divide for non-profit strategy are discussed. Research limitations and future research direction are presented in the paper.

Keywords

intellectual capitalsocial service non-profit organisationsnon-profit strategy
Type
Research Article
Information
Journal of Management & Organization , Volume 16 , Issue 5 , November 2010 , pp. 656 - 676
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agndal, H., & Nilsson, U. (2006). Generation, of human and structural capital: Lessons from knowledge management. Electronic Journal of Knowledge Management, 4(2), 91–98.Google Scholar
Alexander, J. (2000). Adaptive strategies of nonprofit human service organisations in an era of devolution and new public management. Non-profit Management and Leadership, 10(3), 287–303.Google Scholar
Alford, J., & Hughes, O. (2008). Public value, pragmatism as the next phase of public management. American Review of Public Administration, 38(2), 130–148.Google Scholar
Australian Bureau of Statistics (ABS). (2002). Canberra: ABS. pp. 1–45.Google Scholar
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.Google Scholar
Bettis, R. A., & Hitt, M. A. (1995). The new competitive landscape. Strategic Management Journal, 16, 7–19.Google Scholar
Bevir, M., Rhodes, R. A. W., & Weller, P. (2003). Traditions of governance: Interpreting the changing role of the public sector. Public Administration, 81(1), 1–17.Google Scholar
Bontis, N. (1996). There's price on your head: Managing intellectual capital strategically. Business Quarterly, 60(4), 40–47.Google Scholar
Bontis, N. (1998). Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36(2), 63–76.Google Scholar
Bontis, N. (2002). Managing organisational knowledge by diagnosing intellectual capital: Framing and advancing the state of the field. In Choo, C. W. & Bontis, N. (Eds.), Managing, organisational knowledge by diagnosing intellectual capital: Framing and advancing the state of the field (pp. 621–642). Oxford: Oxford University Press.Google Scholar
Bontis, N., Dragonetti, N. C., Jacobsen, K., & Roos, G. (1999). The knowledge toolbox: A review of the tools available to measure and manage intangible resources. European Management Journal, 17(4), 391–402.Google Scholar
Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100.Google Scholar
Boz, I., & Palaz, S. (2007). Factors influencing the motivation of Turkey's community volunteers. Non-profit and Voluntary Sector Quarterly, 36(4), 643–661.Google Scholar
Brock, C. (2008). Financial crisis hits charities, Mortgage Loan. Retrieved 01 5, 2008, from http://www.mortgageloan.com/financial-crisis-hits-charities-2621Google Scholar
Brown, H. S. III. (2005). Non-profit and for-profit competition with public alternatives in an urban setting with congestion. International Regional Science Review, 28(3), 347–372.Google Scholar
Cavana, R. Y., Delahaye, B. L., & Sekaran, U. (2000). Applied business research: Qualitative and quantitative methods. Milton, QLD: John Wiley and Sons.Google Scholar
Charmaz, K. (2003). Grounded theory: Objectivist and constructivist methods. In Denzin, N. K. & Lincoln, Y. S. (Eds.), Grounded theory: Objectivist and constructivist methods (pp. 249–291). Thousand Oaks, CA: Sage.Google Scholar
Chell, E. (2004). Critical incident technique. In Cassell, C. & Symon, G. (Eds.), Critical incident technique (pp. 45–60). London: Sage.Google Scholar
Chetkovich, C., & Frumkin, P. (2003). Balancing margin and mission non-profit competition in charitable versus fee-based programs. Administration and Society, 35(5), 564–596.Google Scholar
Creswell, J. W. (2003). Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks, CA: Sage.Google Scholar
Cunningham, I. (2001). Sweet charity! Managing employee commitment in the U.K. voluntary sector. Employee Relations, 23(3), 226–239.Google Scholar
Dzinkowski, R. (2000). The measurement and management of intellectual capital: An introduction. Management Accounting, 78(2), 32–36.Google Scholar
Edvinsson, L., & Malone, M. S. (1997). Intellectual Capital – The proven way to establish your company's real value by measuring its hidden brainpower. New York: HarperBusiness.Google Scholar
Eisenberg, P. (2000). The non-profit sector in a changing world. Non-profit and Voluntary Sector Quarterly, 29(2), 325–330.Google Scholar
Fletcher, A., Guthrie, J., Steane, P., Roos, G., & Pike, S. (2003). Mapping stakeholder perceptions for a third sector organisation. Journal of Intellectual Capital, 4(4), 505–527.Google Scholar
Grasenick, K., & Low, J. (2004). Shaken, not stirred: Defining and connecting indicators for the measurement and valuation of intangibles. Journal of Intellectual Capital, 5(2), 268–281.Google Scholar
Grindsted, A. (2005). Interactive resources used in semi-structured research interviewing. Journal of Pragmatics, 37(7), 1015–1035.Google Scholar
Guerrero, I. (2003). How do firms measure their intellectual capital? Defining an empirical model based on firm practices. International Journal of Management and Decision Making, 4(2/3), 178–193.Google Scholar
Guthrie, J., Petty, R., & Ricceri, F. (2006). The voluntary reporting of intellectual capital: Comparing evidence from Hong Kong and Australia. Journal of Intellectual Capital, 7(2), 254–271.Google Scholar
Hedlund, G. (1994). A model of knowledge management and the N-Form corporation. Strategic Management Journal, 15, 73–90.Google Scholar
Hood, C. (1991). A public management for all seasons? Public Administration, 69(1), 3–19.Google Scholar
Hoskisson, R. E., Hitt, M. A., Wan, W. P., & Yiu, D. (1999). Theory and research in strategic management: Swings of a pendulum. Journal of Management, 25(3), 417–456.Google Scholar
Hudson, M. (1999). Managing without profit: The art of managing third-sector organisations. London: Penguin.Google Scholar
Hume, C., & Hume, M. (2008). The strategic role of knowledge management in non-profit organisations. International Journal of Non-Profit and Voluntary Sector Marketing, 13(2), 129–140.Google Scholar
Hussi, T. (2004). Reconfiguring knowledge management – Combining intellectual capital, intangible assets and knowledge creation. Journal of Knowledge Management, 8(2), 36–52.Google Scholar
Huxham, C., & Vangen, S. (2005). Managing to collaborate: The theory and practice of collaborative advantage. London: Routledge.Google Scholar
Jamison, I. B. (2003). Turnover and retention among volunteers in human service agencies. Review of Public Personnel Administration, 23(2), 114–132.Google Scholar
Juma, N., & Payne, T. G. (2004). Intellectual, capital and performance of new venture hightech firms. International Journal of Innovation, Management, 8(3), 297–318.Google Scholar
Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organisation: How balanced scorecard companies thrive in the new business environment. Boston: Harvard Business School Press.Google Scholar
Kearns, K. P. (2000). Private sector strategies for social sector success: The guide to strategy and planning for public and non-profit organisations. San Francisco: Jossey-Bass.Google Scholar
Kim, S. E., & Lee, J. W. (2007). Is mission attachment an effective management tool for employee retention? An empirical analysis of a non-profit human services agency. Review of Public Personnel Administration, 27(3), 227–248.Google Scholar
Klein, D. A. (Ed.) (1998). The strategic management of intellectual capital. Boston: Butterworth-Heinemann.Google Scholar
Knight, D. J. (1999). Performance measures for increasing intellectual capital. Planning Review, 27(2), 22–27.Google Scholar
Kong, E. (2003). Using intellectual capital as a strategic tool for non-profit organisations. The International Journal of Knowledge, Culture and Change Management, 3(1), 467–474.Google Scholar
Kong, E. (2008). The development of strategic management in the non-profit context: Intellectual capital in social service nonprofit organisations. International Journal of Management Reviews, 10(3), 281–299.Google Scholar
Kong, E., & Prior, D. (2008). An intellectual, capital perspective of competitive advantage in non-profit organisations. International Journal of Non-Profit and Voluntary Sector Marketing, 13(2), 119–128.Google Scholar
Kong, E., & Thomson, S. B. (2006). Intellectual capital and strategic human resource management in social service non-profit organisations in Australia. International Journal of Human Resources Development and Management, 6(2/3/4), 213–231.Google Scholar
Kong, E., & Thomson, S. B. (2009). An intellectual capital perspective of human resource strategies and practices. Knowledge Management Research and Practice, 7(4), 356–364.Google Scholar
Koruna, S. (2004). Leveraging knowledge assets: Combinative capabilities — Theory and practice. R&D Management, 34(5), 505–516.Google Scholar
Lee, T. W. (1999). Using qualitative methods in, organisational research. Thousand Oaks, CA: Sage.Google Scholar
Leliaert, P. J. C., Candries, W., & Tilmans, R. (2003). Identifying and managing IC: A new classification. Journal of Intellectual Capital, 4(2), 202–214.Google Scholar
Lynch, L. (2009). Smart networking: Attract a following in person and online. New York: McGraw-Hill.Google Scholar
Lyons, M., & Fabiansson, C. (1998). Is volunteering declining in Australia? Australian Journal on Volunteering, 3(2), 15–21.Google Scholar
Marr, B., & Roos, G. (2005). A strategy perspective on intellectual capital. In Marr, B. (Ed.), A strategy perspective on intellectual capital (pp. 28–41). Amsterdam: Elsevier Butterworth-Heinemann.Google Scholar
Marshall, C., & Rossman, G. B. (1999). Designing qualitative research. Thousand Oaks, CA: Sage.Google Scholar
Mayo, A. (2000). The role of employee development in the growth of intellectual capital. Personnel Review, 29(4), 521–533.Google Scholar
Moore, M. H. (1995). Creating public value: Strategic management in government. Cambridge, MA: Harvard University Press.Google Scholar
Mouritsen, J. (1998). Driving growth: Economic value added versus intellectual capital. Management Accounting Research, 9(4), 461–482.Google Scholar
Mouritsen, J., & Koleva, G. (2004). The actorhood of organisational capital. International Journal of Learning and Intellectual Capital, 1(2), 177–189.Google Scholar
Mouritsen, J., Larsen, H. T., & Bukh, P. N. (2005). Dealing with the knowledge economy: Intellectual capital versus balanced scorecard. Journal of Intellectual Capital, 6(1), 8–27.Google Scholar
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. New York: Oxford University Press.Google Scholar
Nowotny, H., Scott, P., & Gibbons, M. (2001). Re-thinking science: Knowledge and the public in an age of uncertainty. Cambridge: Polity Press.Google Scholar
Ordóñez de Pablos, P. (2004a). The importance of relational capital in service industry: The case of the Spanish banking sector. International Journal of Learning and Intellectual Capital, 1(4), 431–440.Google Scholar
Ordóñez de Pablos, P. (2004b). Measuring and reporting structural capital: Lessons from European learning firms. Journal of Intellectual, Capital, 5(4), 629–647.Google Scholar
Organisation for Economic Co-operation and, Development (OECD). (1996). Paris: OECD.Google Scholar
Peppard, J., & Rylander, A. (2001). Using an intellectual capital perspective to design and implement a growth strategy: The case of APiON. European Management Journal, 19(5), 510–525.Google Scholar
Pollitt, C. (1995). Justification by works or by faith? Evaluating the new public management. Evaluation, 1(2), 133–154.Google Scholar
Pollitt, C. (2002). The new public management in international perspective: An analysis of impacts and effects. In McLaughlin, K., Osborne, S. P. & Ferlie, E. (Eds.), The new public management in international perspective: An analysis of impacts and effects (pp. 274–292). London: Routledge.Google Scholar
Ramia, G., & Carney, T. (2003). New public management, the job network and non-profit strategy. Australian Journal of Labour Economics, 6(2), 249–271.Google Scholar
Richards, L. (2005). Handling qualitative data: A practical guide. London: Sage.Google Scholar
Roos, G., Bainbridge, A., & Jacobsen, K. (2001). Intellectual capital analysis as a strategic tool. Strategy and Leadership, 29(4), 21–26.Google Scholar
Roos, G., & Jacobsen, K. (1999). Management in a complex stakeholder organisation. Monash Mt. Eliza Business Review, 2(1), 83–93.Google Scholar
Roos, G., Pike, S., & Fernström, L. (2005). Managing intellectual capital in practice. Oxford: Butterworth-Heinemann.Google Scholar
Roos, J. (1998). Exploring the concept of intellectual capital (IC). Long Range Planning, 31(1), 150–153.Google Scholar
Roos, J., Roos, G., Dragonetti, N. C., & Edvinsson, L. (1997). Intellectual capital: Navigating the new business landscape. London: Macmillan.Google Scholar
Saint-Onge, H. (1996). Tacit knowledge: The key to the strategic alignment of intellectual capital. Strategy and Leadership, 24(2), 10–14.Google Scholar
Salamon, L. M. (1986). Government and the voluntary sector in an era of retrenchment. Journal of Public Policy, 6(1), 1–20.Google Scholar
Salamon, L. M., Sokolowski, S. W., & Associates (Eds.). (2004). Global civil society: Dimensions of the non-profit sector. Bloomfield, CT: Kumarian Press.Google Scholar
Snyder, H. W., & Pierce, J. B. (2002). Intellectual, capital. Annual Review of Information Science, and Technology, 36(1), 467–500.Google Scholar
Stewart, T. A. (1997). Intellectual capital: The new, wealth of organisations. New York: Currency Doubleday.Google Scholar
Stoker, G. (2006). Public value management: A new narrative for networked governance? American Review of Public Administration, 36(1), 41–57.Google Scholar
Strauss, A. L., & Corbin, J. (1990). Basics of qualitative research: Grounded theory procedures and techniques. Newbury Park, CA: Sage.Google Scholar
Strauss, A. L., & Corbin, J. (1998). Basics of, qualitative research: Techniques and procedures for developing grounded theory. Thousand Oaks, CA: Sage.Google Scholar
Subramaniam, M., & Youndt, M. A. (2005). The, influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450–463.Google Scholar
Teece, D. J. (2002). Managing intellectual capital: Organisational, strategic, and policy dimensions. Oxford: Oxford University Press.Google Scholar
Watson, A., Stanworth, J., Healeas, S., Purdy, D., & Stanworth, C. (2005). Retail franchising: An intellectual capital perspective. Journal of Retailing and Consumer Services, 12(1), 25–34.Google Scholar
Webster, E. (2000). The growth of enterprise intangible investment in Australia. Information Economics and Policy, 12(1), 1–25.Google Scholar
Welch, C., Marschan-Piekkari, R., Penttinen, H., & Tahvanainen, M. (2002). Corporate elites as informants in qualitative international business research. International Business Review, 11(5), 611–628.Google Scholar
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.Google Scholar
Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295–320.Google Scholar
Wright, P. M., McMahan, G. C., & McWilliams, A. (1994). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 5(2), 301–326.Google Scholar
Youndt, M. A., Subramaniam, M., & Snell, S. A. (2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management Studies, 41(2), 335–361.Google Scholar