Academic journal article European Research Studies

Encouraging Employees to Increase the Labor Intellectualization Level as a Factor of Evolution of the Intellectual Capital

Academic journal article European Research Studies

Encouraging Employees to Increase the Labor Intellectualization Level as a Factor of Evolution of the Intellectual Capital

Article excerpt

1. Introduction

Drucker (1909-2005) was one of the scientists who first wrote about "knowledge employees" for the first time in 1963, drawing attention to the increasing role of knowledge and of the individual intellectual capital formed on its basis in the enterprise development. Nonaka (2011) noted in the successful development of Japanese firms the importance of "... non-formalized knowledge that secures solutions to various tasks ... This knowledge allows for the perception of the organization not only as a machine for analyzing information but rather as a living organism ... understanding what an enterprise exists for. What direction it develops in, what world this firm seek to ^ function in and how that world is arranged is more important than the analysis of information".

Brennan (2000), notes that "a spirit of self-development reigns in an intelligent enterprise, which shapes a space for self-education and improvement of employees, and they are treated as individuals who influence the economic activity". Scientific researches reveal that a 10% increase in the level of education secures an 8.6% increase in labor productivity, while a similar increase in share capital amounts only to 3-4% of productivity growth. Therefore, the modern world observes the positive dynamics of employment in the field of "intellectual work"--in particular, this figure in the USA is 85% of the total employment growth, in Britain 89%, and in Japan 90% (Chaffey, 2016). In this perspective, the most important task for an "intelligent enterprise" is to secure the ability of its employees to constantly self-educate --for the development of knowledge capital, and self-improve--to form the capital of competences (Pontoh, 2017).

It is important to note that the development of the "intellectual enterprise" is based on the innovation model, the practicality of its functioning being described by the rapid aging of the "knowledge capital" of an employee formed on the basis of the high level of education obtained, due to fluency in foreign languages, awareness in information technologies and a high level of self-organization ability, which in turn requires the organization of regular self-education and continuous improvement of professional level--personal growth (Chen, 2014; Guskova et al., 2016).

Roos paid attention to the need for constant self-education in their papers: "... in a world where the search for intangible forms of competition is ongoing, where all decisions are related to knowledge and education, training should be carried out throughout the entire professional life--education is not only theory and knowledge, but also emotional and spiritual development... If you want to find and get the best employees, you must provide them with training opportunities" (Roos, 2012). Proceeding from the above, the author come to understanding that the important role in the "intelligent enterprise" is played by workers--holders and owners of individual intellectual capital, whose ability to search for new knowledge and develop competences is the foundation the creative abilities of employees are formed on, the corresponding environment develops, which serves as a driver in ensuring the long-term development of economic entities.

However, it must be noted that the development of individual intellectual capital required not just to ensure the formation of a certain "knowledge capital" and "capital of competences", but also to minimize losses that may occur at a person release.

2. Methodology

The goal of this study is the analysis of the experience of European countries for modeling the development of individual intellectual capital at domestic enterprises. The paper uses the method of comparative analysis of the experience of various European countries regarding increasing the intellectual level of employees at enterprises, as well as encouraging them to increase the labor intellectualization level. …

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