Performance Impact of Intellectual Capital: A Study of Indian it Sector

Intellectual capital can be defined as the ‘economic value’ of three categories of intangible assets of acompany-that includes human capital, organisational capital and social capital collectively. Sustained advantagecan occur only in the situations in which physical, human, and organisational capital varies across the firms andwhere some firms may be unable to obtain necessary resources that are benefiting other firms. Intellectual capitalis viewed as a sub-set of intangible capital, where the term intangible relates to assets without physical existenceand capital refers to assets retained by the organisation to contribute to future profits. Intangible resources aremore likely to produce a competitive advantage because they often are rare and socially complex there bymaking them difficult to imitate. A company’s intangible assets are increasingly crucial and positively related toorganisational performance in today’s knowledge economy.