SAJMS - South Asian Journal of Management Sciences

Assessing the link between Intellectual Capital Formation and Performance of a University

The resource-based view (RB V) of the firm grew out of frustration with the structure conduct-performance paradigm of the industrial organization (10) view of the firm and the early RB V theorists found the 10 view - that a firm s success was wholly determined by its external environment - to be unrealistically limited and constraining. Thispaper is an attempt to apply the RB V of the firm to university settings and it looks at the process of Intellectual Capital (IC) formation of a university as the basis for its performance. The paper deals with the issues of IC formation, its measurement,definition of a university s performance, its measurement and the association between the two. The paper provides an overview of the various RB V theories along with a detailed discussion on the notions of strategy, resources, capabilities, competencies and creation of competitive advantage of a firm with special emphasis on the role of human capital in sustaining this competitive advantage. While applying the RBV in Education industry, the four schools of University of Management & Technology(UMT) Lahore are studied in the light of RBV The paper also highlights the limitations of the current study along with some of the future research implications for the human capital-RB V link

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