The Proliferation of Intellectual Capital Through Leadership

The transformation of the economy from manufacturing to knowledge has relegated the importance of capital assets and brought intellectual capital to the fore. With this change, the firms must understand how they can better utilize their intellectual capital. This chapter has attempted to divulge the role of leadership in developing intellectual capital. The chapter has established the correspondence between the type of leadership and intellectual dynamics of the environment firm is operating in. Transactional leadership is more suited to a stable environment where the leader instructed employees are able to achieve the desired result. Transformational leadership is useful when there are changes that are well grasped by the leaders and they can motivate employees to adjust themselves to the emerging changes. Finally, servant leadership develops the type of intellectual capital that is useful for a highly vibrant environment. Leadership instead of selling their vision, facilitate employees to search for new ideas.