The five Cs of intellectual capital : two additional dimensions of assessment

Abstract

Ulrich defines intellectual capital as Competence times Commitment. The model was later extended to include Control as a key ingredient to measure and leverage intellectual capital. This research expands on this model to include two additional dimensions, creativity and culture. It explores the relationship between intellectual capital and these five critical variables: Competence, Commitment, Control, Creativity, and Culture. These variables, and the inter‐relationships between them, can help firms to define and describe their intellectual capital assets. By systematically measuring these five factors, service organizations can identify their strengths and weaknesses in capitalizing their intellectual prowess and resources. In addition, looking at intellectual capital through this lens can help organizations determine where they should invest in their human capital. It can form the basis of developing training programs for employees and lay the foundation for becoming a true learning organization. The purpose of this paper is to expound on the two additional dimensions and outline the benefits of assessing IC within the five dimensions as a means to gain a deeper understanding of the competitive positioning of an organization within its industry. This paper is organized as follows: identify the common theme that emerges from the many definitions of IC, explain the multiple challenges in assessing organization IC.