Management and Organizational Studies 4410A/B Chapter 4: Chapter 4 Notes.docx

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: John White

Document Summary

Based on intellectual assets and intangible people skills: in the knowledge economy, wealth is increasingly created through the effective management of intellectual assets and knowledge workers instead of by the efficient control of physical and financial assets, the gap between a firm"s market value and its book value is far greater for knowledge intensive corporations than it is for firms with strategies based primarily on tangible assets. Many writers have defined intellectual capital as the difference between a firms market and book value (the measure of intangible assets: intellectual capital: consist of intangible assets such as human capital, social capital, intellectual property, brands and trademarks, which all contribute to a firm"s ability to create value through new knowledge and its useful applications. Knowledge: explicit knowledge: codified, documented, easily, tacit knowledge: knowledge that is in the minds of reproduced, and widely distributed employees and is based on their experiences and backgrounds.