Dynamically modelling social and intellectual capital in the search for prolonged value creation

Abstract

In Social capital, intellectual capital and the organizational advantage Janine Nahapict and Stanantra Ghoshal (1998b) explore how intellectual capital is created through the combination and exchange of existing intellectual resources, and how this process is mobilised through social capital. This in turn is demonstrated to be a source of organizational advantage. The approach outlined in this work encourages the use of Nahapiet and Cihoshal along with Kauffmann's NK model as the theoretical cornerstone for the development of empirical research. Agent based simulations based of Kauffman's NK model may capture and generalize the key properties of this value creation process. This approach offers very promising avenues for improving an understanding of the social processes, as characterized by nonlinearity, positive feedback and sense making; features, as stated, that are currently not captured by the traditional strategic management.