Measuring intellectual capital and ways to make organizational change: A case study of Maxwell model

Article history: Received October 20, 2012 Received in revised format 28 January 2013 Accepted 26 March 2013 Available online March 27 2013 In this paper, we present an empirical investigation to measure the effects of intellectual capital using Maxwell model [Maxwell, J. C. (2003). Thinking for a change: 11 ways highly successful people approach life and work. Faith Words]. The proposed model of this survey designs a questionnaire in Likert scale and distributes it among 64 managers in an Iranian switch organization called ABFA. The main hypothesis of this survey studies whether the managers have beautiful mind in their work or not. There are 11 sub-hypotheses in this survey based on Maxwell model and the results of this survey conclude that “Sharing the ideas” index maintains the highest rate of importance and “being detailed oriented” maintains the lowest rate of importance. © 2013 Growing Science Ltd. All rights reserved.


Introduction
Human resources have been considered as the primary source of building successful organizations and successful managers are able to think big and do their best so that their wishes come true (Barker, 1992;Daniels & New, 1994;Johannessen et al., 2005;Marr, 2008).There are different studies to measure the impact of beautiful mind on performance of organizations (Arenas & Lavanderos, 2008).Robinson and Kleiner (1996) are believed to be the first who investigated on how to measure an organization's intellectual capital.Soler and de Oro Celestino (2007) performed an investigation for evaluating the scope of intellectual capital in firms' value.Bontis (1998) and Bontis (1999), for instance, proposed a method for measuring intellectual capital within organization in an attempt to compute the performance of different organizations.Bozbura (2004) used this method for measuring intellectual capital in Turkey.El-Bannany (2008) repeated the same process to study of determinants of intellectual capital performance in United Kingdom banks.Lim and Dallimore (2004) investigated intellectual capital for service industry.Cornacchione (2010) performed an investigation on human capital by integrating intellectual capital architecture and utility theory.Nazari and Herremans (2007) provided a theoretical discussion designed to push the measurement of intellectual capital into a more rigorous and comprehensive domain.According to Perez and de Pablos (2003) knowledge management literature emphasizes the fact that the achievement of a sustained competitive advantage relies on firm's capacity to develop and to deploy its knowledge-based resources.They argued that not all resources were equally important for the achievement of this competitive edge and proposed an integrative framework to analyze human capital combining with the advances from three various areas of research including knowledge management, intellectual capital, and strategic human resource management.Sudarsanam et al. (2006) performed an investigation on real options and the impact of intellectual capital on corporate value.Finally, Tan et al. (2007) investigated on the relationship between intellectual capital and financial returns of companies.

The proposed study
In this paper, we present an empirical investigation to study the impact of intellectual capital on management decisions in one of Iranian organization involved with water supply in city of Esfahan, Iran, called ABFA.The study uses Maxwell model (Maxwell, 2003) to perform this investigation and considers the following main hypothesis, Main hypothesis: Managers of ABFA organization have beautiful mind.
To test the main hypothesis of this survey, we examine the following eleven hypotheses based on Maxwell model, 1.The managers of ABFA organization have macro-vision in their mind 2. The managers of ABFA organization have focused mind.
3. The managers of ABFA organization have creative mind.
4. The managers of ABFA organization have realistic mind.
5. The managers of ABFA organization have strategic mind.
6.The managers of ABFA organization think about possibility of their decisions.
7. The managers of ABFA organization have detailed oriented mind.
8. The managers of ABFA organization have suspicious mind on common thoughts.9.The managers of ABFA organization share their thoughts with others.
10.The managers of ABFA organization are thinking to make change.

The managers of ABFA organization always think about the outcome of their decision.
There are 45 questions associated with the proposed study of this survey in Likert scale from one (Completely disagree) to five (Completely agree) and to test the hypotheses of the survey we use the following hypothesis, : 3 The study uses t-student test to verify the hypotheses and the null hypothesis assumes that managers do not have the mentioned feature.

Conclusion
In this paper, we have presented an empirical investigation to study the effects of intellectual capital in one of switch firms in Iran.The proposed study of this paper has designed a questionnaire consists of 45 questions based on Maxwell's eleven factors and distributed it among all management teams of this firm.We have analyzed all the data using t-student and the results have confirmed that all components are within acceptable limits and management team was close to have beautiful mind.The moral story was that "sharing the ideas" maintained the highest rank followed by "intend to make changes", "having creative mind", "having macro-vision".In addition, "being detailed oriented" maintained the lowest rate of importance followed by "strategic mind".