The value created from intellectual capital
The value created from intellectual capital is determined by the effectiveness of knowledge conversions and transfers. In the business world, the generated value is the outcome of a corporate’s ability to manage its business processes. Moreover, organisational competencies determine the efficiency and effectiveness of managing business processes. With knowledge assets interacting with each other to create capabilities and competencies, corporates are assured to increase their competitive advantage because these interactions make it challenging for competitors to replicate such assets (Ståhle, Ståhle, and Aho 2011, p.531). There are more sophisticated ways of creating value that may come in the forms of value networks, value shops, or value constellations. Value networks contribute to value creation by ensuring the availability of products and services to customers. Notably, this network derives value by connecting buyers to sellers of their products or services of preference and giving suppliers the opportunity to provide their product offerings. Cheng et al. (2010, p.68) explain that value must be added to every point along with the value network, and thus when participants receive value inputs, they should find ways to utilize those inputs to offer higher value in the form of services and products. Some participants in a network can gain value from themselves and still leverage those inputs for greater value outputs. Commercial banks, insurers, stock exchanges, brokers, and airlines are perfect examples of corporations creating value through networks. A linked set of value networks, according to Campbell and Rahman (2010, p.56), is referred to as a value constellation. Value shops leverage on their competency in solving unique problems for customers in order to create value. Accountants, academicians, lawyers, consulting engineers, business consultants, physicians, and investment bankers are examples of companies creating value as “shops”.