Intellectual capital in East and West African social enterprises

Purpose: This study aims to identify the main factors of knowledge assets\r\n(i.e., human, relational and structural capital) that affect the value creation process of\r\nsocial enterprises located in East and West Africa.\r\nDesign: A survey was administered to a sample of social enterprises located in developing\r\ncountries such as Kenya, Uganda, Sierra Leone and Ghana. The survey was\r\ndesigned to gather background information about social enterprises, social entrepreneurs\r\nas well as data pertaining to intellectual capital. Therefore, descriptive statistical\r\nanalysis, principal component analysis and Pearson correlations were employed to\r\nidentify the main components of IC for African SEs and the inter-relationship among\r\nintellectual capital components.\r\nFindings: Research findings confirmed that human capital (i.e., a social entrepreneur's\r\nknowledge), relational capital (i.e., local and global relationship quality) and structural\r\ncapital (i.e., long-term and up-to-date firm knowledge) were validated as important\r\nresources for African SEs in the value creation process. Moreover, correlation analysis\r\nshowed that human capital and relational capital were positively correlated;\r\nwhereas structural capital was positively correlated with the local and global relationship's\r\nquality and with the social entrepreneur's skills.\r\nLimitations: The main limitations concern the heterogeneity and the restricted sample\r\nsize due to challenges in the data gathering process. Moreover, the results could\r\npotentially be influenced by the context and the low response rate. However, this\r\nstudy can represent a starting point for future research in this unique but important\r\nresearch setting.\r\nOriginality: This study can be considered original for several reasons. First, empirical\r\nevidence on knowledge assets in developing countries in Africa is still scarce, despite\r\nthe potential of being a new frontier for intellectual capital studies and social and\r\neconomic growth. Second, the use of a survey method as an IC measurement tool in\r\nthis context is unique. Finally, this study helps in providing a platform for further\r\ninvestigation in Africa.