Role of Intellectual Capital’s Components in Process of Strategy Development

Objective of this paper was to discuss the role of intellectual capital (IC) components in a strategy development. The aim of this paper is to propose an integrated theoretical model that explains, each element of IC (i.e. human capital, structural capital, relational capital) is influencing the process of strategy development (i.e. Mission, Vision, and values, Strategic Goals, Strategic Analysis, and Strategy formulation) independently and differently. Content analysis method was to used to find a research Gap in the field of strategy Development (formulation) and competitive advantage, and we have found that in the field of competitive advantage and strategy the element of Intellectual capital and in particular the components of intellectual capital (Human capital, Structural capital, Relational capital) their linkages with the strategy formulation in preview of gaining competitive advantage was missing. Role of each component of IC on Strategy has been discussed by many researchers and scholars already, the strategy as a source of competitive has also discussed by porter, paper will be integrating all these thing into a single model and will discuss the role of IC in strategy development that will lead the organization towards competitive as well as sustainable competitive advantage.