The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Salvador Beltramino ◽  
Domingo Garcia-Perez-de-Lema ◽  
Luis Enrique Valdez-Juarez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Companies ◽  
Emerging Country ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the Cordoba, Argentina. The data were analyzed by partial least squares–structural equation modeling (PLS–SEM).FindingsThe study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products. Structural capital is the component that has the greatest effect on innovation. It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes limitations that uncover a path for future. First, the work uses as the only source of information, the consultation at the highest level of the company. Second, the study covered only industrial companies. Future studies should focus on other sectors and countries.Practical implicationsThe results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization.Originality/valueThe value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area.

The structural capital, the innovation and the performance of the industrial SMES

2020 ◽  
Vol 21 (6) ◽  
pp. 913-945 ◽  
Author(s):  
Nicolás Salvador Beltramino ◽  
Domingo García-Perez-de-Lema ◽  
Luis Enrique Valdez-Juárez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Industrial Sector ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the structural capital of SMEs in the capacity of innovation and organizational performance, in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the province of Córdoba Argentina. The data was analyzed by Partial Least Squares Structural Equation Modeling (PLS–SEM).FindingsThe study provided evidence that acquisition of information and knowledge management, organizational culture and structure, systems and processes have positive and significant effects on the innovation capacity of SMEs. Only the communication and cohesion component did not show positive and significant results on it. It also showed a positive and significant relationship between the capacity for innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes some limitations that uncover a path for the development of future lines of research. In the first place, the work focuses on the use of a single source of information, the consultation at the managerial level of the company, without considering other representative variables to measure the capacity for innovation. Second, the study covered only companies in the industrial sector and country. Future studies should focus on other sectors and countries.Practical implicationsThe results of the study can have important practical implications for the owners and managers of SMEs. The results offer a vision of the dimensions of structural capital that most influence the innovative capacity of the organization. This is especially useful given that in the context of Argentina there is a low level of knowledge and structural capital is key to being more competitive. The managers of SMEs can thus increase the innovative potential of the company and favor the acquisition of information and knowledge and improve its processes and systems to contribute to the development of innovation capabilities to make SMEs more competitive.Social implicationsThe results obtained can be useful for those responsible for making public policy decisions, since in the knowledge of the economy to maintain a developed state and nation, it is necessary to include as one of the main issues on the national agenda the improvement of intellectual capital of its people to promote the competitiveness of companies.Originality/valueThe research contributes to the development of intellectual capital literature focused on the generation of innovation and performance in the perspective of SMEs in emerging countries.

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

scholarly journals The mediating role of total quality management between the entrepreneurial orientation and the organizational performance

2016 ◽  
Vol 28 (1) ◽  
pp. 89-111 ◽  
Author(s):  
Hassan Saleh Al-Dhaafri ◽  
Abdullah Kaid Al-Swidi ◽  
Rushami Zien Bin Yusoff
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Organizational Performance ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Total Quality ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the joint effect of entrepreneurial orientation (EO) and total quality management (TQM) on the organizational performance. In addition, this study aimed to examine the ability of TQM to transmit the effect of EO on the organizational performance. Design/methodology/approach – To examine the hypothesized model of the study, the survey questionnaire research design was employed. The data were collected from Dubai police department. The total number of questionnaires distributed was 320 out of which only 111 usable questionnaires were returned. The structural equation modeling partial least squares approach was used. Findings – The statistical results confirmed the effect of EO and TQM on the organizational performance. In addition, TQM was found to partially mediate the effect of EO on organizational performance. Practical implications – Further details and valuable implications of this study were discussed throughout the study. The results of this study have many practical implications. The results will help managers to make the proper decisions when deciding to implement TQM in their organizations. TQM can help managers with strong EO to achieve maximum performance in organizations and to remain competitive in the market. Originality/value – This study is a rare and unique empirical study that examines the effect of EO on TQM and the mediating effect of TQM on the EO-performance relationship.

Metrics for the elements of intellectual capital in an economy driven by knowledge

2014 ◽  
Vol 15 (2) ◽  
pp. 206-226 ◽  
Author(s):  
Mariya Anatolievna Molodchik ◽  
Elena Anatolievna Shakina ◽  
Angel Barajas
Keyword(s):  
Customer Loyalty ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Design Methodology ◽  
Relevant Literature ◽  
Empirical Support ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
Practical Implications

Purpose – The purpose of this paper is to explore the plausibility of six elements of IC and justify the measurement ability of a set of indicators based on publicly available data for each of the proposed element in order to provide tools to managers for their decision-making process in knowledge management (KM). Design/methodology/approach – Core company's intangibles are combined into six intellectual capital (IC) elements that appear after the division of each of the traditional components (human, structural and relational capital (RC)). The human capital includes management and human resources capabilities (HRC). Structural capital is divided into innovation and internal process capabilities (IPC). RC contains networking capabilities and customer loyalty. In drawing on the relevant literature each element is described through a set of indicators collected from publicly available data. The validity of proposed IC model is justified through structural equation modeling. Each element is tested on a sample of more than 1,650 listed European companies over the period of 2004-2011. Findings – The study gives empirical support of three component IC structure and its decomposition into second level. The findings reveal that implementation of KM plays a significant role for HRC as well as for IPC. Research limitations/implications – The analysis was conducted for a particular sample that may restrict the conclusions. Practical implications – The proposed measurements for intangibles can be applied by any company for benchmarking and comparative analysis in KM. Originality/value – The study provides empirical justification of metrics for intangibles allowing a better route in an economy driven by knowledge.

scholarly journals The role of management accounting systems in the development of intellectual capital

2017 ◽  
Vol 18 (2) ◽  
pp. 286-315 ◽  
Author(s):  
Jorge Casas Novas ◽  
Maria do Céu Gaspar Alves ◽  
António Sousa
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Management Accounting ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
And Performance

Purpose The purpose of this paper is to examine the role of management accounting systems (MAS) in the development of intellectual capital (IC) – i.e. human capital (HC), structural capital (SC) and relational capital (RC) – and the resultant effects on organizational performance. Design/methodology/approach A questionnaire was developed to conduct a survey of high-level managers of Portuguese companies. The data collected were analyzed through the use of structural equation modeling with AMOS. Findings Statistical support was found for six out of nine hypothesized relationships. The findings confirm the role of MAS in the development of HC and SC. Results also showed positive and statistically significant relationships between the three dimensions of IC, in line with previous research. Finally, results indicated that SC has a positive and significant link with organizational performance, in keeping with some research. Research limitations/implications The estimation procedure allowed only a partial validation of the proposed model because, although positive, the relationships between MAS and RC, between HC and performance and between RC and organizational performance were not statistically significant. Practical implications The study highlights the role of MAS as information networks that collect, process and communicate information that influences the development of IC, as well as networks of relationships that support the establishment of conditions for the creation and integration of organizational knowledge and the development of IC. Originality/value In this research, an arguably more complete framework of the relations between MAS, IC and performance is developed and empirically tested. Despite the existence of some literature addressing the relationship between MAS and IC, this is the first study, of which authors are aware, that focuses specifically on the relationships between MAS and the three dimensions of IC (HC, SC and RC), as well as their effects on organizational performance.

scholarly journals Knowledge sharing, intellectual capital and organizational results in SMES: are they related?

2020 ◽  
Vol 21 (6) ◽  
pp. 893-911 ◽  
Author(s):  
Mírian Oliveira ◽  
Carla Curado ◽  
Andrea Raymundo Balle ◽  
Aino Kianto
Keyword(s):  
Knowledge Sharing ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
Organizational Results ◽  
Medium Enterprises

PurposeThe purpose of this paper is to explore the relations among knowledge sharing (KS), intellectual capital (IC), absorptive capacity (AC), innovation (IN) and organizational performance (OP).Design/methodology/approachThis paper empirically tests a model that uses structural equation modeling (SEM) based on a partial least squares (PLS). The sample is composed of 351 Brazilian and 135 Portuguese enterprises. They are micro, small and medium enterprises.FindingsThe results show that: the relation between KS and AC is partially mediated by IC; the relation between IC and IN is partially mediated by AC and the relation between KS and IN is mediated by AC and IC or both. There are relations among KS, IC, AC, IN and OP.Research limitations/implicationsThe study does not control for industry effects and technological differences among the firms.Practical implicationsThe use of KS mitigates the loss of knowledge associated to employees' retirement or job changes. The knowledge appropriation by the organization (turning human capital (HC) into structural capital (SC)), the knowledge achieved from connections (relational capital, RC) and the trust embedded in an organization's relation with employees are important for AC and IN. Moreover, KS can positively influence all elements of IC. OP depends directly on IN and indirectly on the others constructs.Originality/valueThis study is relevant because it explores the relations among KS, IC, AC, IN and OP in one model. Moreover, it focuses on small and mid-size enterprises (SMEs) with data from two countries.

How does business-IT strategic alignment dimension impact on organizational performance measures

2019 ◽  
Vol 32 (3) ◽  
pp. 457-476 ◽  
Author(s):  
Aboobucker Ilmudeen ◽  
Yukun Bao ◽  
Ibraheem Mubarak Alharbi
Keyword(s):  
Organizational Performance ◽  
Performance Measures ◽  
Business Strategy ◽  
Structural Equation ◽  
Strategic Alignment ◽  
Equation Modeling ◽  
Financial Return ◽  
Content Type ◽  
It Alignment ◽  
Practical Implications

Purpose Despite the conceptual, empirical and theoretical advances in alignment–performance relationship, there is a limited research on the alignment dimensions and organizational performance measures. Though strategic alignment is believed to improve organizational performance, the purpose of this paper is to develop conjectures for understanding how different alignment dimensions influence organizational performance measures. Design/methodology/approach The data were acquired from 161 senior IT and business managers paired responses in China and were analyzed by using a structural equation modeling technique. Findings The hypothesized relationships are largely supported. Thus, quality-oriented strategic alignment dimension has a significant relationship with all performance measures. Contrary to expectations, both product and marketing-oriented strategic alignment dimensions do not show a significant impact on financial return. The marketing-oriented strategic alignment dimension also has an insignificant relationship with operational excellence. Practical implications This study suggests that the business–IT alignment can be dimensioned to better combine business strategy and IT strategy. Hence, managers can focus specific alignment dimension instead of entire strategies of a firm for a better decision making. Originality/value Findings suggest guidance for formulating combined business and IT strategic alignment into dimensions and proposing insightful and practical implications.

From knowledge management to organizational performance

2019 ◽  
Vol 32 (1) ◽  
pp. 36-59 ◽  
Author(s):  
Amjad Iqbal ◽  
Fawad Latif ◽  
Frederic Marimon ◽  
Umar Farooq Sahibzada ◽  
Saddam Hussain
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Research Universities ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Administrative Personnel ◽  
And Performance

Purpose The purpose of this paper is to empirically investigate the effects of knowledge management (KM) enablers on KM processes in research universities and testing the direct relation between KM processes and OP. This study also proposes to examine the mediating role of intellectual capital (IC) and innovation in the relationship between KM processes and performance of universities. Design/methodology/approach Using a sample of 217 academic and administrative personnel from research universities of Pakistan, the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The results reveal that KM enablers have a significant impact on KM processes. The results also indicate that KM processes influence organizational performance (OP) directly and indirectly through innovation and IC. Practical implications Findings of this study reinforce the corporate experience of KM and suggest how administrators of research universities and higher educational institutions can promote innovation and IC, which in turn enhance OP. Originality/value Despite the augmented importance of KM in higher education institutions or research universities, there is a dearth of studies that investigate the interplay of KM, innovation, IC and OP. This is one of the earliest studies that not only empirically investigate the interaction of KM enablers, KM processes and performance of research universities but also shed insights into the existing literature by simultaneously investigating mediating role of IC and innovation in the underlying relationship.

scholarly journals Organizational learning and innovation as sources of strategic fit

2016 ◽  
Vol 116 (8) ◽  
pp. 1445-1467 ◽  
Author(s):  
Ignacio Tamayo-Torres ◽  
Leopoldo J. Gutiérrez-Gutiérrez ◽  
Francisco Javier Llorens-Montes ◽  
Francisco J. Martínez-López
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Strategic Fit ◽  
Turbulent Environments ◽  
Innovation Climate ◽  
And Performance

Purpose The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance. Design/methodology/approach The authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study. Findings The model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit. Research limitations/implications This study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions. Practical implications Managers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments. Originality/value This study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.

Social capital, knowledge sharing and innovation of small- and medium-sized enterprises in a tourism cluster

2018 ◽  
Vol 30 (6) ◽  
pp. 2417-2437 ◽  
Author(s):  
Namhyun Kim ◽  
Changsup Shim
Keyword(s):  
Social Capital ◽  
Knowledge Sharing ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThis study aims to identify the structural relationship among social capital, knowledge sharing, innovation and performance of small- and medium-sized enterprises (SMEs) in a tourism cluster.Design/methodology/approachA total of 199 valid questionnaires are collected from SMEs in the Bomun tourism cluster in South Korea. A structural equation modeling approach is used to test the research hypotheses.FindingsThe findings suggest that social capital constructs, including network density of structural capital, relational capital and cognitive capital, all positively influence knowledge sharing among SMEs in the cluster. This implies that creating social capital is critical to enhancing the competitiveness of SMEs. This study confirms that knowledge sharing positively affects SME performance through innovation.Research limitations/implicationsThis study suggests that social capital, consisting of structural, cognitive and relational capital, facilitates increased knowledge sharing and innovation in a tourism cluster, which in turn enhances SME business performance.Practical/implicationsThis study suggests that tourism cluster policies should focus on how to create a friendly operational climate to build social capital and support SME innovation.Originality/valueThis study contributes to the literature on social capital and innovation as well as the discourse on tourism clusters by addressing knowledge sharing among SMEs in a tourism cluster. It also expands the knowledge sharing and innovation literature by focusing on inter-organizational social networking among SMEs.

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