IC & OI The impact of intellectual capital on organizational innovation

2020 ◽  
Vol 6 (7) ◽  
pp. 1257-1265
Author(s):  
Fouad El-Gamal

Intellectual capital can generate value for organizations and improve organizational innovation. This study aims to investigate the effects of intellectual capital on corporate innovation. Mixed research methodology approach has been used by combining both qualitative and quantitative analysis to explore and empirical examine the research model. The targeted population of interest is the licensed pharmaceutical manufactures, 90 organizations in the Egyptian pharmaceutical industry throughout its three main sectors (11 public, 70 local private and 9 MNCs). Statistical analyses are employed based on the questionnaires gathered from 39 pharmaceutical manufactures’ companies (44% response rate). In addition, sixty-three “63” in depth interviews have been conducted with both top and middle managers. The research findings indicate that all dimensions of intellectual capital (human, structural, and relational capital) have positive significant effects on organizational innovation of pharmaceutical manufactures’ companies. The study clarifies that the most dominant dimension is structural capital, which provides the largest and strongest support to pharmaceutical manufactures’ companies. The deep realization of the importance intellectual capital and its impact on innovation helps leaders to adopt accurate system to run organizational innovation in a better way, which lead to sustainable competitive advantage for organizations.

2020 ◽  
Vol 17 (4) ◽  
pp. 189-201
Author(s):  
Abdelmohsen M. Desoky ◽  
Gehan Abdel-Hady Mousa

This study contributes to the intellectual capital (IC) area of literature by investigating the impact of IC on the firm’s financial performance of two main sectors in the Bahrain Bourse, financial and service sectors, during five years, 2013–2017. The study employs canonical correlation analysis as a unique statistical method to analyze data gathered from 29 sampled companies, representing 145 firm-year observations over the five years. Two groups of variables are employed. The first represents the firm’s financial performance with two variables (return on equity – ROE and return on assets – ROA), while the second includes three intellectual capital components, namely human, customer, and structural capital. Findings related to the financial sector reveal that all IC components (human capital, customer capital, and structural capital) have positive correlations with firm performance except for the labor costs variable (the sub-variable of human capital), which has a negative correlation with firm’s performance. Human capital is also found to be the most significant component of the IC, while structural capital is reported as the lowest effect on the firm’s performance, consistent with some previous research findings. Furthermore, the services sector results revealed that IC is significantly associated with the firm’s performance. Moreover, two sub-variables of human capital (number of Bahraini employees and labor costs) have the most significant impact on the firm’s performance.


2011 ◽  
Vol 17 (3) ◽  
pp. 307-325 ◽  
Author(s):  
Nekane Aramburu ◽  
Josune Sáenz

AbstractThe aim of this paper is to analyze the impact of different organizational enablers – i.e. ‘structural capital’ – on the ideation stage of innovation processes from an ‘intellectual capital’ (IC) perspective. Considering company size as one of the most relevant contingent variables as regards organizational conditions, the moderator role of this variable is also examined. To gather information about the variables under study, a questionnaire has been designed and addressed to the CEOs of a set of 142 Spanish manufacturing firms with more than 50 employees and which carry out R&D activities. Structural equation modelling (SEM) based on partial least squares (PLS) has then been applied in order to test the hypotheses drawn from the research. The results obtained show the organizational components which exert the greatest impact on the ideation phase and, therefore, the priority aspects to work on, in order to enhance this particular dimension of the innovation capability.


2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xi Liu ◽  
Shuai Yang

In order to explore how the core technological capabilities of the high-tech industry affect the sustainable competitive advantage of an enterprise, by consulting a large number of literature studies on sustainable competition, the characteristics of high-tech enterprises were summarized through analysis and sorting and a sustainable competition model was proposed based on market, management, marketing, strategy, and organizational innovation. Through factor analysis, correlation analysis, and structural equations of 266 survey data of related companies, the effectiveness of the model based on the impact of core capabilities of high-tech companies on sustainable competitive advantage was confirmed. The results show that the core competencies of high-tech enterprises’ market recognition, strategic planning, management and operation, full-person marketing, and dynamic marketing directly affect the company’s sustainable competitive advantage. The most important influence on a company’s sustainable competitive advantage is market awareness, and the organizational innovation of the company can also influence the sustainable competitive advantage indirectly, while dynamic marketing can increase the other four capabilities to improve the sustainable competitive advantage of the enterprise. The theoretical model is established to identify the core technological capabilities of high-tech enterprises that can help enterprises effectively identify the core technological capabilities that can form a sustainable competitive advantage and then provide ideas for enterprises to build theoretical research on core technological capabilities.


2021 ◽  
Vol 5 (1) ◽  
pp. 26-40
Author(s):  
Arfah Arfah

The era of the industrial revolution 4.0. In the last century, experts have increasingly convinced that the intellectual resources of an organization determine the competitive advantage of an organization in accelerating the effectiveness of artificial intelligence, especially in presenting the best customer service innovation products. However, there are only a few studies on the relationship between intellectual capital and innovation. Based on the importance of these issues, this study aims to examine the impact of intellectual capital on organizational innovation. Questionnaires have been distributed to 100 employees of PT. Pelindo from Indonesian State-Owned Enterprises (BUMN), and 82 usable questionnaires were returned. The regression statistical method analysis was used to test the hypothesis. The results of the research simultaneously show that intellectual capital has a positive and significant effect on organizational innovation. The next test results partially prove that human capital, organizational capital, and relational capital have a significant and positive effect on organizational innovation. This study opens several pathways for innovation program projects in future Indonesian organizations. The significance of the findings of this study shows the practical implications of the support in the next roadmap on research and development (R&D) of Human Resources and innovation of Indonesian BUMN organizations, particularly at PT. Pelindo as one of the important pillars in the success of the vision of the Indonesian government's maritime axis. Based on the high level of socio-cultural heterogeneity in Indonesia, the implications of follow-up studies are important to expand the sample of employees to a larger and more diverse range and combine other independent variables (such as demographic factors, organizational culture, organizational climate, leadership, job satisfaction or other motivational factors) which may result in different study findings and recommendations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Nick Bontis ◽  
Mobasher Mubarik ◽  
Tarique Mahmood

PurposeThe main objective of this study is to test whether firms with a higher level of intellectual capital (IC) perform better in terms of their supply chain resilience compared to those with lower levels of IC. Likewise, the study also examines the impact of IC (characterized by human capital, relational capital and structural capital) on supply chain resilience directly and through supply chain learning.Design/methodology/approachData were collected from the 159 processed-food sector firms using a close-ended questionnaire during the corona virus 2019 (COVID-19) pandemic. Partial least squares structural equation modelling (PLS-SEM), partial least squares multigroup analysis (PLS-MGA) and one-way analysis of variance (ANOVA) were used to test a set of hypotheses emanating from a conceptual model of IC and supply chain resilience.FindingsEmpirical results revealed a significant influence of all dimension of IC on a firm's supply chain learning and supply chain resilience. Likewise, findings also exhibit a momentous role of supply chain learning in reinforcing the impact of IC on supply chain resilience. Cross-firm size comparison reveals that supply chain resilience of firms with a higher level of IC performed significantly better than those with lower levels of IC. Firms with a higher level of structural capital had a highly resilient supply chain.Practical implicationsFindings of the study imply that IC and supply chain learning should be considered as a strategic tool and should be strategically developed for uplifting a supply chain performance of a firm. The development of IC and supply chain learning (SCL) not only improves the supply chain resilience of a firm but also can help to integrate the internal and external knowledge for harnessing supply chain resilience.Originality/valueThis research study was conducted during the COVID-19 pandemic which provides a unique setting to examine resiliency and learning.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yolanda Ramírez ◽  
Julio Dieguez-Soto ◽  
Montserrat Manzaneque

PurposeThe purpose of this paper is twofold: to know whether those firms that achieve greater efficiency from their intangible resources (intellectual capital) also obtain greater performance; and to analyze the moderating role of family management on that relationship in small to medium-sized enterprises (SMEs).Design/methodology/approachThis paper conducts an empirical study with different econometric models using a panel data sample of 6,132 paired firm-year observations from Spanish manufacturing SMEs in the period 2000–2013.FindingsThe findings suggest that intellectual capital efficiency is a key factor that allows the firm to achieve and maintain competitive advantages, obtaining greater performance. Additionally, this research also shows that the moderating role of family management can be a double-edged sword depending on the type of intangible resources.Practical implicationsThis paper may give managers an insight in how to better utilize and manage intangible resources available in their firms to improve competitive advantage and ultimately firm performance. Additionally, on the basis of the Socioemotional Wealth perspective (SEW), this article argues that family-managed firms that focus on SEW preservation can enhance the impact of structural capital efficiency on performance.Originality/valueThis paper extends the prior literature by studying the joint effects of intellectual capital efficiency, distinguishing between human capital and structural capital efficiency, and family management on performance in the context of SMEs.


2017 ◽  
Vol 14 (1) ◽  
pp. 151-156 ◽  
Author(s):  
Fu-Sheng Wang ◽  
Bei Yuan

Along with the human society entered the era of knowledge economy, intellectual capital has become a new growth point of enterprise value. How does the factor of intellectual capital influence the enterprise value? This paper reviews the relevant literatures and analyzes the relationship between intellectual capital and the enterprise value through both theoretical method and empirical method. In the theoretical analysis, we explore the impact of intellectual capital on enterprise value by mechanism and behavior. Then we selected the data of GEM listed companies from 2010 to 2015 for empirical analysis. Through descriptive statistical analysis and multiple regression analysis, we find there is some correlation between the intellectual capital and enterprise value. The empirical results show that material capital, human capital and structural capital are all positively correlated with the enterprise value.


2017 ◽  
Vol 28 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Carlos Maria Jardon ◽  
Amandio Dasilva

Purpose Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future. Design/methodology/approach A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study. Findings The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs. Research limitations/implications The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America. Practical implications This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development. Originality/value The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.


2018 ◽  
Vol 2 (1) ◽  
pp. 35-46
Author(s):  
Ngatindriatun Ngatindriatun

The aim of the research was to analyze the management of the SMEs of Troso Weaving Craft in Jepara Regency in relation to the human resources. In order that the SMEs can compete with today’s industry, the SMEs are required to be able to run their businesses professionally and to innovate, as well as to implement new breakthroughs. Therefore, the management of the SMEs needs to develop their intellectual ability and competitive advantage for their products. Intellectual capital is the intangible resource that can be used as the source of sustainable competitive advantage. The measurement of IC associated with competitive advantage was made against the elements of human capital, structural capital and costumer capital. Hence,this research discussed a model that relates the intellectual capital of the SMEs to the competitive advantage of the SMEs of Troso Weaving Craft in Jepara Regency. For the development of the model and hypothesis, the research used the Structural Equation Modelling (SEM), by taking the samples of 157 SMEs of Troso Weaving Craft selected in simple random sampling. The analysis results show that human capital, structural capital, and customer capital have the effect on competitive advantage. It means that the improvement of the competitive advantage for Troso Weaving Craft requires trainings in the managements of production, distribution, marketing and finance for all individuals and employees of the SMEs.


2019 ◽  
pp. 1433-1451
Author(s):  
Mufleh Amin AL Jarrah ◽  
Louay Karadsheh ◽  
Muawya Naser ◽  
Samer Alhawari

This article is used to examine the impact of HRMP to achieve a sustainable competitive advantage (SCA) in organizations. The hypotheses that HRMPs influences SCA imply that control of distinctive processes of human resources management (HRM) in industrial companies implies distinct factors of SCA. As a result, new questionnaires were developed and disseminated to 50 companies (200 top and middle managers) in Jordan in a survey format. The collected data was subjected to several simple regression tests using an SPSS program. The research findings presented that different processes of HRM, depending on acquisition, recruitment, training, evaluation performance, and promotion. There has been a strong interest in competing to achieve the highest SCA. The implications of the findings were discussed and suggestions were made.


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