This paper aims to develop a conceptual framework on how Intellectual Capital (IC) accumulation and depletion processes are dynamically interrelated with firm performance. Such a framework makes explicit the relationships between policy levers, strategic resources, drivers, end-results and performance indicators through a Dynamic Resource-based perspective. Such an approach matches the Resource based perspective and the System Dynamics (SD) methodology. This paper argues that in order to explain a firm superior performance, it is not sufficient to look at the endowment of strategic resources in a given moment of time; it is instead required to investigate the dynamics of company strategic resources accumulation and depletion processes over time and how such assets are interconnected with the critical success factors which may enable the firm to build a sustainable competitive advantage. To this aim the proposed conceptual framework was applied to an insurance firm. The paper also highlights the benefits of the developed SD simulation model to support decisions makers’ learning processes in planning alternative IC investment policies.
Keywords: Intellectual Capital, Resource Based View, System Dynamics, Dynamics Resource-based perspective, performance measurement