Abstract
M.Com. (Business Management)
Imperative changes in the global economy continue to change the complexion of many organisations in their quest to remain competitive. Hitherto, their strive to have sustainable competitive advantage is challenged by factors such as increased competition, market volatility, geographically dispersed operations, customer awareness, raising workforce diversity and stringent regulatory regimes. These factors have driven, and in turn, have been driven by an increasing complexity of products, services and the processes that create value, resulting in changes in the structural and functional dimensions of the organisation. Equally, industry captains and scholars alike acknowledge the shift in value creating assets from the traditional land, labour and capital to intangible assets such as knowledge and information becoming the most important resources an organisation can muster.
The combination and integration of intangible assets such as human resources, structural and relational resources have been grouped under the umbrella of intellectual capital. This study sheds light on the unique variables which accelerate intellectual capital as leverage for optimising competitive advantage and collates them with the case study findings of the research conducted at an international oil and gas company headquartered in South Africa. These variables include human capital attributes, such as competencies, tacit knowledge or experience, communities of practice, and competitive intelligence; relational capital attributes such as brand, customer loyalty, corporate social responsibility, and partnerships or joint ventures; and structural capital attributes such as corporate culture, leadership philosophy, and technology or systems.
The research design follows a case study approach and applies the method of content analysis of annual reports and of analysing the content of the oil and gas company, Sasol's, four-year annual reports to establish the disclosure of intellectual capital. In conclusion, this study finds that the realisation of sustainable competitive advantage for any organisation, particularly blue chip companies like Sasol, is the
choice to implement a unique wealth-creating strategy, namely leveraging its intellectual capital. This study highlights that intellectual capital has the potential to offer companies sustainable long-term benefits through intangible assets that are inimitable, that is, current and potential competitors would not be able to duplicate of imitate.