The Mediating Effects of Sensemaking and Measurement on the Intellectual Capital and Performance Linkage pp284-295
Intellectual capital can be a major factor that can aid Caribbean policy makers as the region transitions from its agricultural based economy to service based economies with tourism being the largest contributor to GDP. This paper adds to the extant literature by providing literature on IC within the Caribbean and the tourism industry. Additionally, while the research has emphasized defining and measuring IC and its components, and their impact on firm’s performance theoretical questions remain concerning the synergistic, dynamic and contextual nature of IC. In addition, the use of sensemaking to provide the foundation for understanding the interaction of the IC components and firm’s performance will further enhance the IC literature. This paper reports on the development and testing of a theoretical model concerning the mediating effects of measurement of IC and sensemaking on the components of IC and performance linkage. This quantitative study used structural equation modeling (SEM) to test the model and structural relationships among the components of IC and performance mediated by sensemaking and measurement of IC. Independent variables used in the model were HC, RC and SC; with sensemaking and measurement of IC being the mediating variables and performance, a composite scale measuring managers’ perception on relative changes of their performance of financial and non‑financial measures, being the dependent variable. The study shows that HC, RC and SC are related to sensemaking, that measurement of IC is associated with performance, that measurement of IC mediates the relationships between RC and performance and SC and performance, and it validates the relationship between HC and performance.
This paper explores the relevance and awareness of IC in two hotel chains in the Caribbean. A qualitative exploratory case study method was used to gain an in‑depth understanding of the constructs relating to IC within indigenous Caribbean hotels. The dat a collection procedures employed were documentation, archival records and twenty interviews with top managers. Content analysis was used as the major technique for analyzing the data. The major finding is that there is no formal recognition of the constru ct of IC, but the embedded practices within the organisations suggested the presence of such. The data clustering and analysis of the evidence suggested two themes for HC ‑personal competencies and human resource praxes; three themes for RC ‑ customer ca pital, brand and community capital; and three themes for SC ‑ information systems, innovation and organization. The case studies further revealed that the chains had embedded human resource practices and well established customer relationship management systems which created linkages among the components of IC.