Tacit knowledge the key to the strategic alignment of intellectual capital

In an environment of shortened business cycles and rapid technological change, the intellectual capital framework represents the primary value‐creation dynamics of the firm. It is this focus on the intellectual that has dubbed our times “the knowledge era.” At the Canadian Imperial Bank of Commerce (CIBC), we have been working for a number of years to understand the concept of intellectual capital. Our work has led us to a definition of intellectual capital, the exploration of the roles of both explicit and tacit knowledge in the three constituent elements of intellectual capital, and, finally, to the development of ways of encouraging value creation in these elements in support of our business strategies.