Impact of knowledge on Intellectual Capital and Creating Value - Organizational Performance Profitability and Market Evaluation w.r.t. Software and Pharmaceutical Companies at Bengaluru

Dr. Manjunatha C.T.; Ashok Kumar S.R.

Volume : VIII, Issue : II, February - 2019

Impact of knowledge on Intellectual Capital and Creating Value - Organizational Performance Profitability and Market Evaluation w.r.t. Software and Pharmaceutical Companies at Bengaluru

Dr. Manjunatha C. T. , Ashok Kumar S. R.

Abstract :

In the present era of knowledge, intellectual capital (IC) represents value of the products. The traditional annual financial statements report only partially regarding the intangible assets. In order to gain competitive advantage IC through organizational efficiency IC assumes as a significant driver. The increase of the organizational performance is a by–product of microeconomic policies or financial balance but the outcome of technical progress, innovation, quality of human, customer loyalty, patents, concepts, models and computer and administrative system, market channels, customer and supplier relationships. The previous research reveals the presence of strong relationship between IC and organizational performance. Twenty first century is described by developing the importance of knowledge and its effect on all aspects of organization (Bose, R. 2004). Knowledge is acquiring supreme status now–a–days and through R&D markets and environmental effects can be gauged positively which is so common in American Industrial Area. Knowledge as an asset comparatively enjoys the unique nature and if is increased more valuable it becomes. Under conventional science of accounting intangible assets were usually considered as “goodwill” but today the classification of IC is found in the new classification such as external capital, internal capital and human capital.