The Relationship between Intellectual Capital and Brand Equity

Abstract

Intellectual capital includes all processes and assets that are not normally shown on the balance sheet and all the intangible assets (trademarks, patents and brands) that modern accounting methods consider; it includes sum of knowledge’s of its members and practical translation of his or her knowledge. Corporate brand, on the other hand, is a valuable resource, one that provides an entity with a sustainable, competitive advantage. The present article blends the viewpoints of intellectual capital and corporate brand and suggests the measures for mining human capital to create brand equity. Indian IT sector is increasing in economic significance, but we cannot neglect the fact that since the year 2008 the IT industry on the whole is facing a very volatile and uncertain environment, with the slowdown becoming an inescapable reality. In today’s scenario IT industry is focusing on improving operational excellence, and the role of HR within organizations is undergoing a significant change as well. Organizations are realizing that they need to develop innovative ways to increase operational and workforce effectiveness that in turn would affect their brand equity. The present study will find out the how some strategic elements of IT companies and their complementarities enhance an organization’s brand equity and how some intangible elements can become the core competencies of the firm that influence the brand equity of the firm, respectively. The study shows that to improve operations and increase profits, management should continue to focus on employee education and training and maximize the professional skills and abilities of employees.