Abstract
M.A.
The purpose of this thesis is to determine to what extent intellectual capital is
recognised and developed in the South African horseracing industry. A significant
motivation for this study is that, despite the importance of intellectual capital in
today’s market environment, no such study has been done in this specific industry.
Because of the scope and nature of the horseracing industry, such a study is crucial.
The study is divided into a literature review, where theoretical groundwork is
discussed, and an empirical study, where the theory is practically applied within the
South African horseracing industry context. The industry can be defined as an
oligopoly, with Phumelela and Gold Circle as the key organisations. Therefore,
Phumelela and Gold Circle’s intellectual capital recognition and development is
examined in depth and compared with each other. Other industry role players and
factors, such as betting types and racecourses, are also discussed, as it provides an
overview essential to the study.
The literature review is divided into three sections – intellectual capital, knowledge
sharing, and the learning organisation. Intellectual capital is the main focus of the
study, with knowledge sharing and the learning organisation seen as key intellectual
capital development methods. Intellectual capital is defined according to three
categories – human, structural, and relational capital. Intellectual capital’s
organisational importance and measurement are also discussed. Knowledge,
knowledge sharing, and knowledge sharing methods (formal and informal) are
described and placed within organisational and intellectual capital frameworks. The
overall importance of knowledge sharing, in addition to its importance to intellectual
capital, is discussed.
The learning organisation is an essential paradigm in the knowledge economy and
refers to an organisational and individual mindset for knowledge improvement, goal
achievement, and development. It is defined and discussed in an intellectual capital
context. The learning organisation’s importance to the development of intellectual
capital, knowledge sharing, and the organisation as a whole, is explained.
The qualitative empirical study is conducted primarily by examining the annual
reports and financial statements of Gold Circle and Phumelela. Specific structured
interviews with key industry role players are also referred to and comparisons of the
aforementioned organisations are given.
Summaries of findings are presented and recommendations are made to assist in the
industry’s task of managing and developing intellectual capital. Areas of future
research are also referred to, which include studying intellectual capital on a global
horseracing scale as well as the role that knowledge development plays in the
international competitiveness of the horseracing industry.
The South African horseracing industry is complex and vast, requiring the
development of intellectual capital and other intangible assets to compete strongly
globally. This thesis shows that this is not done to its full extent as yet and there is
still a long way to go for the national industry to realise its full potential.