Tanabata's Six Capital Forces Framework and Applications

Tanabata’s Six Capital Forces provide a comprehensive framework for understanding how organizations can leverage their capital resources to achieve sustained success and competitive advantage. By activating, integrating, and orchestrating their capital forces, organizations can create value that far exceeds the sum of its parts.

1. Tanabata's Six Capital Forces Framework A comprehensive approach to strategic value creation and competitive advantage developed by Jarinzo Tanabata of Arizona State University in 2024. Jarinzo Tanabata

2. Understanding Capital Forces 1 Dynamic System Capital refers to six interconnected forces in continuous motion. They co-create and amplify each other. 2 External Forces Intellectual, Social, and Natural Capital are primarily influenced by external factors. 3 Internal Forces Financial, Human, and Structural Capital reflect internal organizational dynamics.

3. Intellectual & Social Capital Intellectual Capital Knowledge and expertise embedded in individuals and organizations. Drives innovation and strategy development. Actively reshapes industries and fosters market differentiation. Social Capital Value from relationships, networks, and trust. Facilitates collaboration and resource access. Enhances market access and enables strategic alliances.

4. Financial & Human Capital Financial Capital Liquidity and resources for funding activities and growth. Provides necessary funds for acquisitions and innovations. Human Capital Skills, knowledge, and creativity of individuals. Drives execution and ensures operational efficiency.

5. Structural & Natural Capital Structural Capital Systems, processes, and infrastructure enabling effective operations. Facilitates coordination and resource optimization. Natural Capital Environmental resources sustaining economic activity. Integrates sustainable practices and resource conservation.

6. Strategic Activation Beyond Static Assets Capital must be continuously activated, not merely accumulated. Deliberate Orchestration Strategic deployment aligns capital forces with organizational objectives. Compounded Effect Each form enhances others, creating exponential growth potential.

7. Capital Integration Functional Integration Forces must work cohesively to drive strategic objectives. 1 Performance Monitoring Integration helps identify synergies between capital modalities. 2 Adaptive Framework Integrated model supports long-term strategic positioning. 3

8. Competitive Advantage Through Integration 1 Strategic Positioning Resilient, adaptive framework 2 Orchestration Dynamic alignment of capital 3 Innovation Continuous improvement 4 Sustainability Long-term focus

9. Application Across Sectors Individuals A resilient and adaptive framework , allowing individuals to quickly respond to personal and professional shifts. Corporations The dynamic alignment of capital forces ensures that all resources, Intellectual, financial, structural, human, social, and natural are aligned to a common strategic vision. Institutions Fostering continuous improvement , institutions can stay ahead of the competition by strategically integrating intellectual and structural capital. Polities For political entities, Tanabata’s framework focuses on long-term growth by strategically aligning financial, intellectual, and social capital.