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Strategic fit: Key to growing enterprise value through organizational capital

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  • Miles, Sandra Jeanquart
  • Van Clieaf, Mark

Abstract

Organizational capital is an intangible asset that is a continuous creator of value through generating above-normal revenue growth, innovation, operational excellence, and stakeholder relationships. The elusive nature of organizational capital stems from competing perspectives on how it can be defined and managed. This article presents a comprehensive model for understanding the critical process, components, and necessary linkages that result in increased enterprise value through the creation of organizational capital. Attention is given to the factors that influence organizational capital (fit among leadership, strategy, and organization design), its influence on human capital, and, ultimately, the impact on operational excellence, stakeholder capital, and the essential levels of innovation that drive capital efficient growth. Guidance is provided for the CEO, CFO, and CHRO wishing to harness the power of organizational capital and increase both current and future value of the firm.

Suggested Citation

  • Miles, Sandra Jeanquart & Van Clieaf, Mark, 2017. "Strategic fit: Key to growing enterprise value through organizational capital," Business Horizons, Elsevier, vol. 60(1), pages 55-65.
  • Handle: RePEc:eee:bushor:v:60:y:2017:i:1:p:55-65
    DOI: 10.1016/j.bushor.2016.08.008
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    References listed on IDEAS

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    1. Baruch Lev & Suresh Radhakrishnan & Weining Zhang, 2009. "Organization Capital," Abacus, Accounting Foundation, University of Sydney, vol. 45(3), pages 275-298, September.
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    3. Miles, Sandra Jeanquart & Mangold, W. Glynn, 2005. "Positioning Southwest Airlines through employee branding," Business Horizons, Elsevier, vol. 48(6), pages 535-545.
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    5. Tim R. Holcomb & R. Michael Holmes Jr. & Brian L. Connelly, 2009. "Making the most of what you have: managerial ability as a source of resource value creation," Strategic Management Journal, Wiley Blackwell, vol. 30(5), pages 457-485, May.
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    Cited by:

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    2. Diana Teixeira & Nelson Duarte, 2018. "Value creation: the internal perspective," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 3, pages 235-243.
    3. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.
    4. Currie, Denise & McCracken, Martin & Venter, Katharine, 2022. "Avoiding the vicious cycle, engendering the virtuous circle: Understanding the interaction of human, social and organizational capitals in non-profit and voluntary organizations," Journal of Business Research, Elsevier, vol. 152(C), pages 17-28.
    5. Wasim ul Rehman & Faryal Jalil & Omur Saltik & Suleyman Degirmen & Mustafa Bekmezci, 2024. "Leveraging Strategic Innovation and Process Capabilities for Intellectual Capital Initiative Performance of Higher Education Institutes (HEIs): A Knowledge-Based Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4161-4202, March.
    6. Luis Enrique Valdez-Juárez & Nicolas Salvador Beltramino & Roberto Limón-Ulloa & Elva Alicia Ramos-Escobar, 2020. "The Quality of the Service, Superior Value Generator in the Restaurant Sector," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(3), pages 1-87, March.

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