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Intellectual Capital as a Basis for Cash Flow and Renewal

Author

Listed:
  • Tomi Hussi

    (Think Fellows)

  • Aino Kianto

    (LUT Business School, LUT University)

Abstract

The discussion around intellectual capital (IC) has centered on organizational renewal and innovation, and the significance of IC for the effective execution of the current business model has been relatively overlooked. In this chapter, we claim that IC is equally relevant for both strategic goals and construct dynamic models portraying the role of knowledge assets and knowledge flows in the production of cash flow and renewal. We suggest that the IC-based dynamics of cash flow and renewal production are based on three types of knowledge assets (energy, demand, and platform), which interact through three knowledge flows (reflection, dialogue, and offering). The difference between cash flow and renewal processes lies in the direction of the dynamic process. We suggest futurizing IC theory and practice through an improved acknowledgment of the current cash flow perspective and the dynamics among IC components. Furthermore, we argue that it would also be wise to adjust IC terminology to make it more intelligible to the general, non-scholarly audience.

Suggested Citation

  • Tomi Hussi & Aino Kianto, 2025. "Intellectual Capital as a Basis for Cash Flow and Renewal," Knowledge Management and Organizational Learning,, Springer.
    • Handle: RePEc:spr:kmochp:978-3-031-80197-6_4
    DOI: 10.1007/978-3-031-80197-6_4
    as

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