INTELLECTUAL CAPITAL INTEGRATION FOR VALUE CO-CREATION IN HIGHER EDUCATION

In the changing dynamics of socioeconomic settings, the role of HEIs (Higher Education
Institutions) is now realized as more strategic and central to all such developments. The
dynamics are sometimes characterized by government interventions, industry expectations and
societal needs. This new and dynamic position describes HEI as an innovation hub, a value adding
entity and as an intellectual capital powerhouse. HEIs’ role is often considered around
three key areas of teaching, research and community contribution. This paper presents a
synergized approach to portray HEIs’ strategic role by re-conceptualizing value creation for its
stakeholders. With application of discourse analysis, it attempts to identify and propose value
creation sources for HEIs. The sources are identified by constructing on intellectual capital and
service innovation frameworks. This paper shows the complexity of problem in reporting value
creation by higher education institutions in the context of dynamics and its relation to the
environment. HEIs have already adapted the structures that are more inclined to
‘managerialism’ than the administration (Enders, 2015) such as understanding of competitive
markets, stakeholders’ interests and the need for deploying strategic management practices.
Nevertheless, the organizations in higher education are yet to build systems that could provide a
strategic blue print for value creation. The discourse of intellectual capital deployment in higher
education management is also not an alien; however, its integration on reporting value creation
sources would provide a prototype that can be customized for individual institutional value
creation reporting. The sources are categorized by affirming service innovation and intellectual
capital discourses in the context of stakeholders’ evolving expectations. By reinventing
intellectual capital and re-conceptualizing value co-creation, we can facilitate the efforts on
building higher education institutions that are highly sustainable in our competitive era.
However, this intellectual capital and value co-creation alignment requires a comprehensive yet
innovative reporting to inform strategic decision making. This paper presents a reinventing
intellectual capital model to demonstrate how HEIs can develop and deploy intellectual capital
and sustain this on-going value co-creation. The model is based on intellectual capital and
service innovation frameworks. Intellectual capital is integrated as structural, human, relational
and social capital whereas service innovation is incorporated on Service-Dominant logic. The
arguments focus on the dynamics of entrepreneurship, sustainability, globalization and
knowledge society. The model is then validated by deploying content-analysis and recommends
value co-creation instruments for internal and external stakeholders.