Developing Dynamic Intellectual Capital in the Public Sector

Purpose - As the imperative of continuous change seems to be facing public and private organisations alike, understanding the dynamic dimension of intellectual capital (IC) has gained increasing urgency. However, research on dynamic IC in the public sector is scant. Therefore, the purpose of this paper is to examine dynamic intellectual capital, that is, organisational renewal capability in the public sector. Design - The paper examines dynamic intellectual capital in one large public sector organisation. The case city organisation employs ca. 6,000 employees and is located in Eastern Finland. It was formed when six previously distinct municipalities merged in the early 2009, and it is still in the process of change. Research data was collected in the course of 15 months in an action research project by surveys, interviews and workshops and in several reporting discussions and development workshops. Originality-To the best of our knowledge, this paper is the first study to examine dynamic IC in the public sector. Practical implications - This paper contributes to the literature on intellectual capital in the public sector by demonstrating a structured approach to assessing dynamic IC in a city organisation. The paper also discusses the distinct challenges and characteristics of managing IC in the public sector, in contrast with private companies, and thereby extends understanding on the particularities of the public sector context.