The Role of Leadership in Intellectual Capital Management

This report delves into the relationship between leadership and intellectual capital, examining ethical considerations and the contingency theory. The assignment explores how organizations collect and utilize intellectual capital, highlighting the need for ethical discussions within accounting literature. It also investigates leadership models, particularly the contingency theory, and how leaders can improve their relationships with team members. Furthermore, the report discusses how ownership structures impact the management of intellectual capital, distinguishing between opaque and transparent industries. The assignment also touches upon the significance of knowledge acquisition, including strategies like mergers and acquisitions for accessing new markets and talent. The report provides a comprehensive overview of leadership's role in managing intellectual capital and its associated challenges.

The ethical issues related with the intellectual capital statement are being collected by
the organization in systematic ways. It is thus needed to explore the absences of ethical
discussion in case of accounting literature as the intellectual capital will reflect the
absence within the accounts in the organization. Thus proper review is needed in order
to operate the category in intellectual capital.
Typology theories focus on the leadership present in most elaborative models for the
contingency model as per the structural contingency theory. The manager thus needs to
supervise the competent employees which will be able to practice the consensus
promptly. There is the key proposition that leaders are moderately improved their
knowledge and also modify the leader-member relations.
The contingency theory related to ownership represents the present extensions of the
contingency approach to other areas of the organization. This theory thus suggests that
there are opaque and transparent industries. For opaque industries, there is a highly
specific capital investment and for that reason monitoring the mangers would likely to
manage the special expertise and information. The shareholders are found to unlike to
possess this information and thus managers under large block owners are needed to be
more effective.
For transparent industries, there is less number of firms pertaining to specific capital
and so relatively simple requirements of monitoring are needed to the large block
outside these owners who may be found to be more effective
The effective way in acquiring knowledge is required to purchase any other organization
for hiring the individuals. The companies are found to buy the other companies for

different reasons, in order to generate additional revenue or to reach out the strategic
size or the product mix. They can also access the new markets by utilizing the proper
knowledge of the senior management team.