Efficient Utilization of Intellectual Capital for Sustainable Development: A Case of Pakistan

Intellectual capital (IC) is the concept of modern economics and accountancy. There are three critical components of intellectual capital—human capital, structural capital, and relational capital. Collectively, these components are essential parts of any organization. It would not be wrong to say that a tangible asset is nothing without intellectual capital. Simultaneously, the business model of sustainable growth covers long-term preservation and improvement of the organization’s intellectual capital. Academicians and practitioners believe that organizational sustainability is associated with its culture and sometimes with its policies and SOPs. Many studies have claimed that organizations can ensure sustainable development by using intellectual capital. It is instrumental in optimizing current organizational performance. This chapter’s prime objective is to explain the theoretical and practical understanding of intellectual capital, its significance, dimensions, and its utilization for the sake of sustainable development. In aggregate, this chapter helps the readers to comprehend the concept and importance of intellectual capital in a modern economy. The chapter’s structure starts with IC’s worldwide practices and ends with Pakistan’s business practices for sustainable development, current intellectual capital utilization, and suggested action plans for better output.