Turning knowledge assets into innovative business processes: an empirical example in the asset management industry

Purpose - This paper introduces initial insights into how Mediolanum Asset Management Limited (MAML), an innovative and expanding Italian asset manager based in Ireland, relies on a knowledge-based organisational structure fostering innovation in order to generate a sustainable competitive advantage. Knowledge-based SMEs such as MAML face a recurring challenge in the highly competitive asset management industry: they rely heavily on their staff expertise in order to generate innovation while trying to downplay at the same time their dependency on their human assets. The company fosters innovation while resting on KM practices and IC to build a social and organisational capital. Design/methodology/approach - Primary and secondary data are gathered from observation, documentation and semi-structured interviews and provide the material on which this study is based. Knowledge management and intellectual capital theoretical lenses are elicited for the critical analysis and interpretation of the results. Originality/value - This paper based on empirical evidence demonstrates how intellectual capital stocks and knowledge management practices are actually approached and implemented in order to create value through innovation-led processes. To our knowledge, MAML constitutes a rare case of a SME in the asset management industry that is positively and consciously concerned with managing and capturing intellectual capital so thoroughly. Practical implications - This paper provides interesting and valuable insights to other small asset managers on how they can employ intellectual capital and knowledge management practices as an alternative way to generate an innovation-led sustainable competitive advantage while reducing at the same time their dependence on human assets.