The role of intellectual capital in non‐profit elderly care organizations

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Abstract
Purpose – The starting-point of this paper is the observation that, while intellectual capital (IC) management seems to be a potential approach for non-profit elderly care organizations, there is a lack of empirical evidence on how it could actually be applied. This paper aims to add to knowledge of this issue. Design/methodology/approach – This is an exploratory, qualitative case study including three case organizations. The case descriptions and analysis are based on interviews with managers of the case organizations. Findings – The study describes which intangible resources are highlighted in the operations of non-profit elderly care organizations, the existing practices regarding the management of IC factors and the IC needs of management in these organizations. Research limitations/implications – The study focuses on Finnish non-profits. The operations of the third sector may vary across countries. Practical implications – The elderly care sector is facing big challenges due to the changing age structure in many Western countries and due to the pressure to produce cost-effective but still high-quality services. The IC approach seems well-suited as a managerial framework that can capture the intangible aspects of operations. However, more research and practical application experience are needed at this stage. Originality/value – IC research on non-profit organizations is rare and has so far been rather generic and conceptual. The paper makes a contribution by presenting empirical and industry-specific findings.

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