An intellectual capital perspective of human resource strategies and practices

Previous research has investigated the relationships between intellectual capital (IC) and human resource management (HRM). Others have described the link between IC and strategic initiatives in an organization including strategic human resource management (SHRM). However, little systematic work has been done to develop a holistic overview of connections between the three concepts. Through an analysis of the recent IC literature and the literature that discusses IC, SHRM and HRM, this paper argues that not only are the three concepts closely connected, but also IC should play a key role in SHRM processes and HRM practices in organizations. The strategic connections also demonstrate that IC can be conceptualized as a holistic partner to both SHRM and HRM; thus, adding strong support for the need to measure IC accurately. A theoretical framework is proposed to illustrate IC, SHRM and HRM connections. Finally, the paper suggests directions for future research.