Inclusion values, practices and intellectual capital predicting organizational outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Beth G. Chung ◽  
Michelle A. Dean ◽  
Karen Holcombe Ehrhart
Keyword(s):  
Intellectual Capital ◽  
Organizational Outcomes ◽  
Organizational Level ◽  
Content Type ◽  
Hr Practices ◽  
Outcome Relationship ◽  
Level Data ◽  
Human And Social Capital ◽  
Conditional Indirect Effects ◽  
The Relationship

PurposeThis study examines whether inclusion values predict organizational outcomes through mediating effects of inclusive HR practices and investigates whether intellectual (human and social) capital serves as a contingency variable in moderating the relationship between practices and outcomes.Design/methodology/approachOrganizational-level data were collected from 79 senior-level executives. Hypotheses were examined via regression analyses and the product-of-coefficients approach was used to test for indirect and conditional indirect effects.FindingsThis study found a positive relationship between inclusion values and inclusive HR practices and between inclusive HR practices and organization-level outcomes. Inclusive HR practices mediated the relationship between values and outcomes and intellectual capital moderated the relationship between practices and outcomes, such that inclusive HR practices played a greater role in augmenting outcomes for organizations with lower intellectual capital.Practical implicationsAlignment of inclusion values and inclusive HR practices is important for organizational effectiveness, and inclusive HR practices are likely to play a particularly important role when an organization is relatively weak in intellectual capital.Originality/valueThis paper broadens the inclusion literature by using a macro-level lens to understand how organizational inclusion values and practices may relate to organizational outcomes. It also shows the importance of intellectual capital as a contextual variable in the inclusion practice to outcome relationship.

Measuring intellectual capital in a firm belonging to a strategic alliance

2015 ◽  
Vol 16 (1) ◽  
pp. 174-198 ◽  
Author(s):  
Stefania Veltri ◽  
Andrea Venturelli ◽  
Giovanni Mastroleo
Keyword(s):  
Decision Making ◽  
Expert System ◽  
Intellectual Capital ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Empirical Work ◽  
Organizational Level ◽  
Decision Making Process ◽  
Content Type ◽  
Scant Attention

Purpose – The purpose of this paper is to propose a method to measure intellectual capital (IC) in firms involved in strategic alliances, an area that has received scant attention in the literature, as existing research is focused mainly on organizational level mainly and increasingly on macro-level unit such as regions or nations. There are very few works at the meso-level (i.e. alliances, clusters), and the paper aims to fill this void, by providing researchers and practitioners with a tool capable of combining measurement and management aims, developed at organizational level with the active participation of the researchers. Design/methodology/approach – The method of analysis is based on a model formalized through a fuzzy expert system (FES). The FES are able to merge the capabilities of an expert system to simulate the decision-making process with the vagueness typical of human reasoning, maintaining the ability to still have a numeric value as a response. Its construction requires the participation of experts, whose knowledge of the problem is accumulated in the form of blocks of rules. These features make it possible to formalize the decision-making process related to the IC valuation, handling qualitative and quantitative variables, and exploring the cognitive mechanisms underlying this process. Findings – The outcome of the application is a system designed to measure the intangible performance deriving from participation in a strategic alliance using FES. This study contributes to the broadening of the research community’s understanding regarding the alternative measurement of IC created within strategic alliances. Research limitations/implications – To the best of the authors’ knowledge, IC literature lacks methods expressly designed to measure the incremental value of IC originating from collaboration among firms. From a measurement perspective, the results may be regarded as valuable proof that IC performance within strategic alliances can be measured quantitatively. Practical implications – On the management side, the possibility of retracing the determinants of different IC intermediate indicators composing the final IC index allows strategic alliances managers to use this information for decision-making purposes. Originality/value – To the best of the authors’ knowledge this is the first study applying FES to measure IC in a firm belonging to a strategic alliance. In the authors’ opinion, fuzzy logic methodology, recently applied in empirical work designed to evaluate IC, represents a reliable methodology because of the “fuzzy” nature of IC.

Drivers for voluntary intellectual capital reporting based on agency theory

2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel
Keyword(s):  
Propensity Score ◽  
Agency Theory ◽  
Propensity Score Matching ◽  
Intellectual Capital ◽  
Integrated Reporting ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Management Report

PurposeThe purpose of this paper is to investigate the drivers for voluntary intellectual capital (IC) reporting based on agency theory. This study responds to calls for critical investigations of IC reporting utilising Goebel’s (2015a) IC measuring approach to investigate the role of IC value and mispricing for IC reporting.Design/methodology/approachA mandatory management report offers a unique research setting in Germany. The content analysis results of 428 German management reports are used in a regression analysis with leverage, ownership diffusion, IC value and mispricing. Additionally, a propensity score matching approach examines the relationship between IC reporting and IC value.FindingsThe regression results show that companies use voluntary IC reporting to encounter mispricing. IC reporting is negatively associated with leverage, whereas ownership diffusion and IC value show no significant results. The propensity score matching approach is also not significant.Research limitations/implicationsThis study contributes to strengthening and testing agency theory for IC reporting. As mispricing is identified to play an important role for IC reporting, IC research should account for mispricing.Practical implicationsThe findings suggest to reopen a discussion on the declared aims of the German management report and the international integrated reporting model to provide information on value creation, as IC value shows no link to IC reporting.Originality/valueThis study innovatively links IC reporting to IC value and mispricing to investigate drivers for voluntary IC reporting.

Intellectual capital in Ugandan service firms as mediator of board governance and firm performance

2014 ◽  
Vol 5 (3) ◽  
pp. 300-340 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Joseph M. Ntayi ◽  
Augustine Ahiauzu ◽  
Samuel K. Sejjaaka
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Predictor Variable ◽  
Mediating Effect ◽  
Board Governance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Starting Point ◽  
The Relationship

Purpose – The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance. Design/methodology/approach – This study was cross-sectional. Analyses were by SPSS and Analysis of Moment Structure on a sample of 128 firms. Findings – The mediated model provides support for the hypothesis that intellectual capital mediates the relationship between board governance and perceived firm performance. while the direct relationship between board governance and firm financial performance without the mediation effect of intellectual capital was found to be significant, this relationship becomes insignificant when mediation of intellectual capital is allowed. Thus, the entire effect does not only go through the main hypothesised predictor variable (board governance) but majorly also, through intellectual capital. Accordingly, the connection between board governance and firm financial performance is very much weakened by the presence of intellectual capital in the model – confirming that the presence of intellectual capital significantly acts as a conduit in the association between board governance and firm financial performance. Overall, 36 per cent of the variance in perceived firm performance is explained. the error variance being 64 per cent of perceived firm performance itself. Research limitations/implications – The authors surveyed directors or managers of firms and although the influence of common methods variance was minimal, the non-existence of common methods bias could not be guaranteed. Although the constructs have been defined as precisely as possible by drawing upon relevant literature and theory, the measurements used may not perfectly represent all the dimensions. For example board governance concept (used here as a behavioural concept) is very much in its infancy just as intellectual capital is. Similarly the authors have employed perceived firm financial performance as proxy for firm financial performance. The implication is that the constructs used/developed can realistically only be proxies for an underlying latent phenomenon that itself is not fully measureable. Practical implications – In considering the behavioural constructs of the board, a new integrative framework for board effectiveness is much needed as a starting point, followed by examining intellectual capital in firms whose mediating effect should formally be accounted for in the board governance – financial performance equation. Originality/value – Results add to the conceptual improvement in board governance studies and lend considerable support for the behavioural perspective in the study of boards and their firm performance improvement potential. Using qualitative factors for intellectual capital to predict the perceived firm financial performance, this study offers a unique dimension in understanding the causes of poor financial performance. It is always a sign of a maturing discipline (like corporate governance) to examine the role of a third variable in the relationship so as to make meaningful conclusions.

scholarly journals The secret of organisation success

2015 ◽  
Vol 4 (1) ◽  
pp. 27-36 ◽  
Author(s):  
Alma Maria Rodríguez-Sánchez ◽  
Maria Vera Perea
Keyword(s):  
Collective Efficacy ◽  
Point Of View ◽  
Behavioral Approach ◽  
Organizational Level ◽  
Content Type ◽  
Team Resilience ◽  
Multilevel Perspective ◽  
The Common ◽  
The Relationship ◽  
Resilience Capacity

Purpose – The concept of the “resilient organisation” has gained popularity as a concept that might aid organizations survive and thrive in difficult or volatile economic times. Knowing which factors may contribute to building organizational and team resilience is one of the questions that still remain unsolved. The purpose of this paper is to examine and review different conceptualisations of this emergent topic in the management literature, taking into account the common features of resilience capacity in organizations and teams. Design/methodology/approach – To examine the literature on resilience, the authors will focus on team resilience. The authors depart from the psychological-behavioral approach to study resilience and instead take a multilevel perspective (i.e. taking into account organizational and team factors). Findings – From a psychological-behavioral point of view the authors posit that there is a lack of research on which factors build team resilience. This review clarifies and relates independent and isolated studies on resilience taking into account the resources both at team and organizational level (i.e. collective efficacy, transformational leadership, teamwork, organizational practices) that build team resilience capacity. Research limitations/implications – Taking into account this review, future studies should analyze empirically the relationship between these factors that build up team resilience. Practical implications – With this review the authors try to provide guidance as to which aspects of the organization both research and practitioners should focus on. Originality/value – In sum, this literature review examines organizational and team factors that may build team resilience from a psychological-behavioral perspective, taking into account the multilevel view.

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.

Intellectual capital and performance

2018 ◽  
Vol 19 (2) ◽  
pp. 407-452 ◽  
Author(s):  
Eugénia Pedro ◽  
João Leitão ◽  
Helena Alves
Keyword(s):  
Intellectual Capital ◽  
Research Question ◽  
Empirical Studies ◽  
Content Type ◽  
Wide Range ◽  
Depth Study ◽  
Global Vision ◽  
Customer Capital ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to determine the predominant classification of intellectual capital (IC), in terms of components, using the literature of reference on the relationship between IC and performance and considering multi-dimensional analysis axes (MAAs): organisational, regional and national. Design/methodology/approach A systematic literature review (SLR) is presented focussing on empirical studies on IC published in the period 1960-2016. A protocol for action is defined and a research question is raised, gathering data from the databases of: Web of Science, Scopus and Google Scholar. A social network analysis is also provided to determine the type of networks embracing groups, IC individual components and performance type. Findings Of the 777 papers included in the SLR, 189 deal with the relationship between IC and performance. The paper highlights the greater development of empirical studies starting from 2004; the organisational MAA is the most studied. The most frequently used groups of components in studies dealing with IC’s influence on performance corresponds to a triad of human capital; structural (organisational or process) capital; and relational (social or customer) capital, which determine positively the performance of organisations/regions/countries, but their influence is not linear and depends on various factors associated with the context and surrounding environment. Practical implications This study has wide-ranging implications for politicians/governments, managers and academics, providing empirical evidence about the relationships between the components of IC and performance, by MAAs, and a global vision and better understanding of how those IC components have developed and how they are related to performance. Originality/value Due to the high number of references covering a wide range of disciplines and the various dimensions (e.g. organisational, regional and national) that form IC, it becomes fundamental to carry out an SRL and systematise its MAAs to deepen knowledge about what has been discovered/developed in this domain, in terms of empirical studies, in order to situate the topic in a wider theoretical-practical context. The paper is exceptionally wide-ranging, covering the period 1960-2016. It is one of the first clarifying studies on systemisation of the literature on IC, by MAA, and an in-depth study of IC’s impact on the performance of organisations/regions and countries which may serve as a guideline for future studies using the taxonomy proposed.

Does intellectual capital impact firms' capital structure? Exploring the role of firm risk and profitability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
A. D'Amato
Keyword(s):  
Capital Structure ◽  
Intellectual Capital ◽  
Value Added ◽  
Firm Risk ◽  
Financial Leverage ◽  
Data Set ◽  
Content Type ◽  
Novel Approach ◽  
Firm Profitability ◽  
The Relationship

PurposeThe purpose of this paper is to analyze the relationship between intellectual capital and firm capital structure by exploring whether firm profitability and risk are drivers of this relationship.Design/methodology/approachBased on a comprehensive data set of Italian firms over the 2008–2017 period, this paper examines whether intellectual capital affects firm financial leverage. Moreover, it analyzes whether firm profitability and risk mediate the abovementioned relationship. Financial leverage is measured by the debt/equity ratio. Intellectual capital is measured via the value-added intellectual coefficient approach.FindingsThe findings show that firms with a high level of intellectual capital have lower financial leverage and are more profitable and riskier than firms with a low level of intellectual capital. Furthermore, this study finds that firm profitability and risk mediate the relationship between intellectual capital and financial leverage. Thus, the higher profitability and risk of intellectual capital-intensive firms help explain their lower financial leverage.Research limitations/implicationsThe findings have several implications. From a theoretical standpoint, the paper presents and tests a mediating model of the relationship between intellectual capital and financial leverage and its underlying processes. In terms of the more general managerial implications, the results provide managers with a clear interpretation of the relationship between intellectual capital and financial leverage and point to the need to strengthen the capital structure of intangible-intensive firms.Originality/valueThrough a mediation framework, this study provides empirical evidence on the relationship between intellectual capital and firm financial leverage by exploring the underlying mechanisms behind that relationship, which is a novel approach in the literature.

Knowledge has no value until it is shared: an empowering leadership perceptive

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Misbah Hayat Bhatti ◽  
Umair Akram ◽  
Muhammad Hasnat Bhatti ◽  
Tabassum Riaz ◽  
Nausheen Syed
Keyword(s):  
Knowledge Sharing ◽  
No Value ◽  
Social Exchange ◽  
Organizational Level ◽  
Empowering Leadership ◽  
Content Type ◽  
Affective Trust ◽  
Individual Level ◽  
High Level ◽  
The Relationship

Purpose The effect of empowering leadership on knowledge sharing is well defined, but factors that stimulate employees for knowledge sharing are still limited. Therefore, this study aims to address to what extent empowering leadership is desirable to create a trustful and fair environment that is conducive for an employee’s knowledge sharing. Design/methodology/approach Through integration of social exchange, equity and uncertainty management theories develop a moderating mediating model that links empowering leadership to knowledge sharing. Three-wave data collection from the sample of 375 managers–subordinates’ dyads was done in Pakistan textile industries. Findings Hierarchal regression analysis and bootstrapping method were applied to test the hypotheses. The results indicate that affective trust partially mediates the relationship between empowering leadership and knowledge sharing. More especially, the findings demonstrate that the relationship between empowering leadership and knowledge sharing becomes strong with high level of distributive and procedural justices. Practical implications This research study uses empowering leadership as a proposed motivational pathway for stimulating employee’s knowledge sharing through development of affective trust and buffering effect of distributive and procedural justices. Originality/value Most of previous research in knowledge sharing just cynosure organizational-level elements like leadership and organizational justices but deteriorate individual factors like trust. Therefore, this study will combine both organizational- and individual-level factors for urging employees for knowledge sharing.

Impact of regulatory focus on security technostress and organizational outcomes: the moderating effect of security technostress inhibitors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Inho Hwang ◽  
Sanghyun Kim ◽  
Carl Rebman
Keyword(s):  
Regulatory Focus ◽  
Structural Equation ◽  
Negative Relationship ◽  
Organizational Outcomes ◽  
Equation Model ◽  
Organizational Level ◽  
Moderating Effects ◽  
Content Type ◽  
Individual Personality

PurposeOrganizations invest in information security (IS) technology to be more competitive; however, implementing IS measures creates environmental conditions, such as overload uncertainty, and complexity, which can cause employees technostress, eventually resulting in poor security performance. This study seeks to contribute to the intersection of research on regulatory focus (promotion and prevention) as a type of individual personality traits, technostress, and IS.Design/methodology/approachA survey questionnaire was developed, collecting 346 responses from various organizations, which were analyzed using the structural equation model approach with AMOS 22.0 to test the proposed hypotheses.FindingsThe results indicate support for both the direct and moderating effects of security technostress inhibitors. Moreover, a negative relationship exists between promotion-focused employees and facilitators of security technostress, which negatively affects strains (organizational commitment and compliance intention).Practical implicationsOrganizations should develop various programs and establish a highly IS-aware environment to strengthen employees' behavior regarding IS. Furthermore, organizations should consider employees' focus types when engaging in efforts to minimize security technostress, as lowering technostress results in positive outcomes.Originality/valueIS management at the organizational level is directly related to employees' compliance with security rather than being a technical issue. Using the transaction theory perspective, this study seeks to enhance current research on employees' behavior, particularly focusing on the effect of individuals' personality types on IS. Moreover, this study theorizes the role of security technostress inhibitors for understanding employees' IS behaviors.

Age-inclusive HR practices and the thriving of older workers: the mediating role of occupational future time perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eduardo Oliveira
Keyword(s):  
Surface Analysis ◽  
Older Workers ◽  
Time Perspective ◽  
Future Time Perspective ◽  
Future Time ◽  
Content Type ◽  
Hr Practices ◽  
The Relationship ◽  
Remaining Time

PurposeDrawing on social exchange theory and socio-emotional selectivity theory, this paper examines the role of occupational future time perspective (OFTP) in the relationship between age-inclusive HR practices (AIHRP) and the thriving of older workers.Design/methodology/approachA two-wave cross-sectional design was adopted with bootstrapped parallel multiple mediation analyses. In addition, polynomial regression with response surface analysis was used to examine the extent to which combinations of focus on opportunities and remaining time relate to thriving at work. Data were collected from 310 older workers working in 13 companies located in Portugal.FindingsAIHRP have direct effects on OFTP dimensions (i.e. focus on opportunities and remaining time), and indirect effects on the two thriving dimensions (i.e. learning and vitality) via focus on opportunities. The positive relationship between AIHRP and learning was mediated by remaining time, while no significant mediating effect on vitality through remaining time was found. Additionally, surface analysis showed that overall thriving and learning increase more sharply when focus on opportunities is higher than remaining time, rather than vice versa.Originality/valueThis paper contributes to the literature by showing the importance of personal resources like OFTP in the relationship between AIHRP and the thriving of older workers. It also provides further support for the distinctiveness of the two OFTP dimensions as remaining time was not linked to vitality, whereas focus on opportunities was linked to both thriving dimensions.

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