Intellectual Capital : and Environmental Dynamism

In an intensely competitive landscape where the boundaries of firms have become increasingly permeable, a firm's survival is dependent on how well it manages resources within its control to deal with factors outside its direct control. Results of this study show that IC is an important organisational capability which should be considered as a strategic resource. IC provides an important link in explaining that successful firms are those that can respond well to the new dynamics of firm competition by being able to strike an optimal balance between their employment of tangible and intangible resources through exploiting the firm's dynamic capabilities in responding to the dynamisms in the environment. Environmental dynamism is shown to positively moderate the relationship between human capital and performance. In a dynamic environment, frequent changes occur with a lesser degree of predictability. Whether a firm would succumb to or triumph over the detriments brought about by the frequent changes depends largely on the resources available at its disposal.