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Showing posts with the label intellectual capital

Developing Innovative Capital Through the Subconscious

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Creativity leads to innovation that improves organizational functioning by solving problems. As more problems are resolved, the organization continues growing to become competitive on the market. Even though the subconscious influences creativity and problem solving, it is has been ignored as pseudo-science despite impacting almost everything in our lives; including solving business problems. Creativity relies on our ability to resolve problems that lead to the survival of both ourselves and society. Creative people like Einstein are honored because they have the capacity to develop new solutions to long unsolved problems. Without the use of the subconscious, creativity would have never been turned into a useful form. Problem-solving requires preparation, incubation, illumination, and verification (Grupas, 1990). A creative person studies a problem and develops a knowledge base, allows possible solutions to incubate in the subconscious, percolates a solution into a conscious form

The Importance of Hiring Managers with Divergent Thinking

Divergent thinking allows managers to find new solutions to existing organizational problems. Those that can see a problem from multiple perspectives are more likely to come to comprehensive solutions with greater impact. Tunnel Vision among managers leads to lower results and less innovative problem solving. Companies that do not consider adding divergent thinking skills to their intellectual and labor capital may find themselves with sluggish future performance.  Divergent thinking is a process of developing multiple vantage points and ways of seeing a problem. Those with higher cognitive abilities often use multiple and simultaneous pathways to understand, analyse, solve, and implement solutions from different vantage points. Switching perspectives is important for well-rounded solutions that meet multiple stakeholder solutions.  Divergent thinking is associated with genius and artistic ability. Neuroscientific studies have found that divergent thinking uses both hemisp

Free Trade Agreements can Foster Economic Hubs

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Free trade agreements are a common economic method of increasing trade. Free trade agreements work best where lower value imports are used to create higher value exports. Global hubs  often work with regional hubs in an international supply chain that continues to develop products for exportation to world markets. Effective economic hubs use intellectual capital to create value that cannot be easily copied by other countries. According to Chong and Hur (2008) each hub has access through trade agreements to the spokes but the spokes only have access to the hub. This means that the hub can sell more products and services than the spokes can themselves. This advantage gives them preferred trading and profitability standards. It also creates a value chain with the highest hub realizing the most benefits. Because hubs are central locations, they also can have an advantage in investments (Wonnacott, 1996). Those who seek to maximize their investment opportunities will invest their

Retaining Competitive Advantages through Specialized Human Capital

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Organizations seek to develop uniqueness that will allow them to create competitive advantages that allow them to better compete on international markets. The combination of human capital and organizational factors helps develop those firm specific qualities. The development of human capital through firm-specific skills will further retain the talent of organizational members and encourage lower levels of knowledge loss or competitive posturing. Competitive advantage is a unique organizational strength a company develops over competitors through the offering of higher products, value, or benefits that justifies higher prices on the market. It is a condition whereby an organization is more efficient and productive than those it competes with. Such firms are seen as competitive, “ if it is able to create more economic value than the marginal competitor (Peteraf & Barney, 2003: 314). Through this competitiveness, additional benefits are earned by the organization that other