Impact of social capital and business operation mode on intellectual capital and knowledge management

Chief executives have recently identified knowledge management (KM) as a "must do" item for their firms. These executives have also contended that social capital is a catalyst in effectively implementing knowledge management. However, the mechanism through which social capital influences knowledge management requires further study. This study examines the influence of social capital and business operation mode on knowledge creating activities, intellectual capital (IC) and knowledge management effectiveness. After a series of interviews with experts and a questionnaire survey, this study reached the following findings: firms implementing higher levels of authority delegation and social capital tend to engage in more knowledge-creating activities and have more intellectual capital; levels of intellectual capital tend to significantly influence KM effectiveness; social capital and delegation of authority are significant moderators of the relationships between knowledge-creating activities and intellectual capital.