Intellectual capital creates value for the organization: What about other stakeholders?

The ever-increasing market turbulence has turned today’s corporate landscape more competitive and complex. Particularly during the last two decades, the increased utilization of ICT systems and technologies globally transformed the services sector in terms of ease of business processes and improved client service delivery. However, in the current knowledge-based era, ICT-enabled systems and tools would only be meaningful if these are appropriately utilized by the knowledgeable and skilled workforce. However, leveraging these necessitates a knowledge-enabled work culture and recognizing that people are crucial to building a robust Intellectual Capital (IC) that is central to achieving long-term market competitiveness. IC comprising of intangible assets and knowledge resources is central to value creation for the firm as evident from the growth of the knowledge-based industries. Nevertheless, the true potential of IC for deriving value advantage for diverse organizational stakeholders has not been fully utilized. Hence, by conducting 12 face2face interviews with the senior executives within Australian Professional Service Firms (PSFs), this study offers renewed approach to IC valuation by introducing ‘Triple Value Bottom-line’ perspective in PSFs. The results highlight that the IC offers enormous potential towards deriving broader value outcomes for multiple organizational stakeholders.