Shaik Rahamath Bee, D. Appala Raju


Relational Capital (RC) concerns connections and relations of the organization with the external environment. It is value of relationship with customer, strategic partners, employees, etc. Relational Capital is defined as all resources linked to the external relationships of the institutions such as customers, suppliers, R&D partners, government, etc.


The physical infrastructure is also a very important part of intellectual capital of the organization. Hamel and Prahalad (1990)(4) recommend business houses that a special spotlight on intangible assets is essential because it represents the hub of skill in the business houses as essential to ‘vie for the potential’. The business value is principally produced in the intangibles. Relational Capital is an intangible, tangible asset. How the external stakeholders in the form of Contracts for Research and Development caters to the need of the tangibility aspect of Relational Capital in intellectual capital management with conversion of intangibility aspect of relational capital into tangible aspect. Contracts R&D (Research and Development) is the degree of response of various functions of academic and research with the outsiders usually industries through Contractual agreements of various forms. The related factors that help in smooth transactions and maintaining relations with different resources and utility oriented factors like whether there are regular competitive and non-competitive contracts with the industry, regular memorandum of understanding with industries to augment research, whether assessment of vendor rating done is yearly, is a definite selection process available and is the details of vendors available as per information act etc., all these factors are considered for the study of the Contracts R&D in Relational Capital for effective performance of Intellectual Capital Management in Institutions of higher learning in select universities of Andhra Pradesh in India.


Intellectual Capital, Relational Capital, Contracts, R&D, External relationship, Outside partners.


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