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Write brief of the review(refer picture below) that related to Fourth Industrial Revolution (4IR). 2. Review of literature Organizations in the modern era are existing
Write brief of the review(refer picture below) that related to Fourth Industrial Revolution (4IR).
2. Review of literature Organizations in the modern era are existing in a complex en- Human Capital (HC): Defined as the knowledge, skills, and cap- vironment of ever-increasing dynamism and uncertainty. For the suc- abilities of an individual the notion of HC can be traced back to the cess of an organization, it is vital for it to develop and acquire tacit early 1950s (Mubarik et al., 2018). However, the inception of HC resources and knowledge (Hitt et al., 2001; Hitt et al., 1998), leading to theory (Becker, 1962a) and theory of firm (Penrose, 1959) exposed the a shift from physical resources to intangible (imitable) resources, and importance of HC both at firm and country levels. These researchers for gaining both ambidexterity and competitiveness (Ashton and defined HC as the knowledge, skills, and abilities of a person that can be Morton, 2005; Wong and Aspinwall, 2005). Thus, management of instrumental in improving his job-related performance. Becker (1964) knowledge-based resources has become a key driver for better perfor- explained that improving HC through education and training can in mance and sustainable competitive advantage (Grant, 1996; turn improve an organization's performance. He also considered health Mubarik et al., 2019; Sharkie, 2003; Teece, 2012). The literature on IC as an essential component of HC. Scholars in the early 1990s, (e.g. contains attention-grabbing opinions about the technique in which or- Grant, 1996; Russo and Fouts, 1997; Edvinsson, 1997; Mouritsen, 1998; ganizations adjust exploration and exploitation activities. In the same Hitt et al., 1998) included qualities like attitude, creative thinking, and vein, HC, structural capital (SC) and relational capital (RC) represent problem solving as being part of HC, and they developed several con- different knowledge stocks at different organizational levels structs to measure it at the firm level. Likewise, HC of an organization is (Mubarik et al., 2019; Mubarik, 2015). These IC dimensions will in- also defined as the combined competencies of employees to resolve teract across different organizational levels, playing distinct roles when problems of customers, suppliers, and the organization. The organiza- creating ambidextrous capabilities (Fernandez-Perez et al., 2017; tion-wide HC is the knowledge and institutional memory about prior- Kang and Snell, 2009) and leading to superior organizational perfor- itizing the importance of the organizational issues. This resource com- mance (Andrews, 2010; Liu and Chen, 2009). Before discussing how the prises the individual skills, collective experience, general know-how IC interacts with OA and the role TMT plays in IC-ambidexterity dyad, and management expertise of all of the employees (Edvinsson, 1997). it is essential to review the various definitions of IC and how it is Gupta and Roos (2001) determine that HC includes skills and knowl- measures. To this effect, the following section briefly reviews the de- edge, so intellectual ability in employees work for quickly adopt finition of IC and its way of operationalization. change, innovation and effective solution to the problem etc. Various studies (Arshad et al., 2015; Hershberg, 1996; Mubarik et al., 2018) 2.1. Intellectual capital considered HC as being the repository of knowledge, abilities and skills exemplified in labor for the production and economic value. Thus, HC The fourth Industrial Revolution creates new relationships between can be defined as the knowledge and skills achieved by the worker humans and machines, along with changes in the work characteristics, through experience and education (Sullivan and Sullivan, 2000). Diaz- organizational structure and relationships. This has brought IC into the Fernandez et al. (2017) supported this definition and pointed out that heart of fourth industrial revolution and is the reason that researchers HC is comprised of personal attributes such as skills, knowledge, and claim that stepping into the fourth industrial revolution requires having expertise. It is HC that plays a substantial part in organizational per- strong IC. The concept of IC primarily incorporates activities of em- formance as well as in the economic development of any country. ployees, directors, intelligent human beings and stakeholders of the Drawing from the HC theory and resource-based theory, we define HC company that create value. John Kenneth Galbraith (Itami, and Roehl., as the knowledge, skills and abilities of the employees that are instru- 1991) first coined the term "intellectual capital" or IC in 1969. Ac- mental in increasing organizational performance (Figs. 1 and 2). cording to Edvinsson (1997) and Jorgensen and Boje (2010), the term Structural capital (SC): From the perspective of the organization, SC includes a degree of relative 'intellectual action'. Researchers mention incorporates all non-human knowledge resources. SC represents an IC as the knowledge and relationships that can be transformed into organization's processes and structures through which it performs its organizational performance. However the framing of IC as a subject of business transactions. These structures range from tangible to in- research is a fairly new trend. It started from after the seminal article of tangible stuff that the organization offers, for instance, copyrights, Stewart (1997) published in Fortune magazine where he discussed IC as patents, software systems, databases, processes and trademarks, ac- being the knowledge, ability, and strength of employees, which could countability, organizational culture, trust among employees and effi- strengthen the competitiveness of an organization. He also mentioned ciency ( Zameer et al., 2020). Structural or organizational capital ac- that the distinction between the market value and the book value of an cordingly comprises of internal value drivers of an organization, organization is IC. Various researchers (e.g. Barathi Kamath, 2007; namely, routines, processes, customer files, database, manuals, and the Bontis and Fitz-Enz, 2002; Bontis and Nikitopoulos, 2001; Kang and literature and structure of an organization (Reza et al., 2020)0. Snell, 2009) from distinctive backgrounds explain the concept of IC Asiaei and Jusoh (2015) state that organizational capital comprises of differently; however three components of IC can be found in almost internal capital, which encompasses management philosophy, in- every definition: HC, RC and SC. The following lines briefly explain tellectual property, management processes, financial relations, in- each of these components. formation and networking systems, and corporate cultureStep by Step Solution
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