Intellectual capital in East and West African social enterprises

Purpose: This study aims to identify the main factors of knowledge assets (i.e., human, relational and structural capital) that affect the value creation process of social enterprises located in East and West Africa. Design: A survey was administered to a sample of social enterprises located in developing countries such as Kenya, Uganda, Sierra Leone and Ghana. The survey was designed to gather background information about social enterprises, social entrepreneurs as well as data pertaining to intellectual capital. Therefore, descriptive statistical analysis, principal component analysis and Pearson correlations were employed to identify the main components of IC for African SEs and the inter-relationship among intellectual capital components. Findings: Research findings confirmed that human capital (i.e., a social entrepreneur's knowledge), relational capital (i.e., local and global relationship quality) and structural capital (i.e., long-term and up-to-date firm knowledge) were validated as important resources for African SEs in the value creation process. Moreover, correlation analysis showed that human capital and relational capital were positively correlated; whereas structural capital was positively correlated with the local and global relationship's quality and with the social entrepreneur's skills. Limitations: The main limitations concern the heterogeneity and the restricted sample size due to challenges in the data gathering process. Moreover, the results could potentially be influenced by the context and the low response rate. However, this study can represent a starting point for future research in this unique but important research setting. Originality: This study can be considered original for several reasons. First, empirical evidence on knowledge assets in developing countries in Africa is still scarce, despite the potential of being a new frontier for intellectual capital studies and social and economic growth. Second, the use of a survey method as an IC measurement tool in this context is unique. Finally, this study helps in providing a platform for further investigation in Africa.