Influence of Intellectual Capital Initiatives on Value Creation in Universities in Kenya

Abstract

Intellectual capital initiatives in Kenyan universities are opportunities to act on the value of universities with activities covering the key components of human capital, structural capital and relational capital. This study provides evidence that the combined effect of intellectual capital constructs have a positive significant effect on university value creation. The purpose of this study was to examine the influence of intellectual capital initiatives on value creation in public universities in Kenya. The study focused on; the influence of human capital initiatives on value creation in public universities in Kenya; influence of relational capital initiatives on value creation in public universities in Kenya. To determine what structural capital initiatives influence value creation in public universities in Kenya and to determine the extent to which situational environment moderated the influence of intellectual capital initiatives on value creation in public universities in Kenya. A survey design was employed. The study targeted management employees of public universities chartered before the year 2010. A sample of 144 respondents was drawn from a total of 480 management employees of public universities selected. The study employed a questionnaire to academic staff who were purposively sampled. Descriptive analysis generated frequencies, means percentages and standard deviations. The study employed factor analysis with reference to principal Component Analysis to ascertaining the suitability of data for further statistical analysis. Linear regression analysis, analysis of variance, coefficients and multiple regression were employed to examine the nature of the relationship between variables. The study established a positive significant relationship between Human Capital initiatives, Structural Capital initiatives, relational capital initiatives and Value Creation in public universities in Kenya. Situational environment yielded a weak positive insignificant relationship as a moderator on combined intellectual capital constructs. However, the moderating effect of situational environment on human capital and on structural capital saw an improvement of the scores of regression coefficients. The study concluded that intellectual capital constructs have a positive and significant influence on value creation in public Universities in Kenya. This implies that organizational effort to codify organizational knowledge and thereby further develop and make use their intellectual capital ultimately results in value creation in public universities. Therefore the study recommended that the intelligence generated through intellectual capital ought to be entrenched into practice by knowledge intensive organizations given the high returns that are associated in its application. Furthermore, there is a need for universities to take up the challenge in measuring, managing and reporting on their intangible assets which include but are not limited to processes, innovation capacity, patents, tacit knowledge of its members and their network of collaborators and contacts.