Assessing organisational renewal capability Online publication date: Fri, 17-Oct-2008
by Aino Kianto
International Journal of Innovation and Regional Development (IJIRD), Vol. 1, No. 2, 2008
Abstract: Even though mastering continuous change has become a significant issue for an increasing number of organisations, the Intellectual Capital (IC) literature has so far remained quite isolated from the themes of innovation, learning and organisational development. Most of IC research adopts the viewpoint of IC as a static stock, and ignores that especially in dynamic environments, it is important to be able to renew the intangible assets continuously. This paper adopts the concept of renewal capability to examine how an organisation is able to use its knowledge resources for learning and innovation. Renewal capability is based on a combination of organisational characteristics that enable the firm to learn and innovate, which in turn produce sustainability in the face of changing market conditions. This paper contributes to the literature on IC by providing a theoretical concept and a survey instrument for understanding and assessing organisational renewal capability.
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