The purpose of this paper is to develop propositions for empirical validation regarding appropriate management planning and control systems (MPACS) in knowledge‐intensive organizations.
The propositions were developed from interviews with members of a knowledge‐intensive virtual organization that is known for its innovative practices regarding intellectual capital (IC) development and surveys from low to middle range managers, using a semi‐structured questionnaire, from a variety of companies. Trends in responses permitted us to identify issues of importance in developing innovative MPACS for knowledge‐intensive companies.
The paper proposes that two variables, the level of IC intensity and the uncertainty of knowledge, are important for determining the degree of adaptive versus generative characteristics that an organization's MPACS should contain. Regarding IC, the paper further proposes that organizations must give careful thought to ensure that both adaptive and generative characteristics are aligned with four MPACS elements of focus, commitment, capability, and learning.
As organizations develop programs to realize the potential from their intellectual capital, many fail to develop MPACS that are appropriate for knowledge‐intensive environments. MPACS should support knowledge creation, as well as knowledge sharing, and contain elements of both adaptive and generative systems.
