The impact of intellectual capital on innovation generation and adoption

Mir Dost · Yuosre F. Badir · Zeeshan Ali · Adeel Tariq

154 citations0/0 files storedJournal of Intellectual Capital

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Intellectual Capital and Performance Analysis Innovation and Knowledge Management Knowledge Management and Sharing

Abstract

Purpose The purpose of this paper is to measure the separate and interrelated effects of three aspects of intellectual capital (human, social and organizational capital) on innovation generation and adoption. Design/methodology/approach Data were collected from 318 respondents’ of chemical firms. This study used multiple regression analysis to analyze the influence of human, organizational and social capital on innovation generation and adoption. Findings Results suggest that organizational capital exerts significantly positive impact on innovation adoption. In the same vein, social capital exerts significantly positive impact on both innovation generation and adoption. Moreover, interaction of social capital further strengthens the influence of organizational capital on innovation adoption. Contrary to hypotheses, human capital does not exert significant influence on innovation generation. However, interaction of social capital further strengthens the impact of human capital on innovation generation. Practical implications Findings offer implications for modern managers to utilize the knowledge that resides in firm’s different locations. It also enhances managerial ability to identify and apply these knowledge resources to expedite innovation generation and adoption. Originality/value Innovation generation and adoption plays a critical role in firm’s acquiring success and competitive advantage, yet the influence of intellectual capital on innovation generation and adoption mostly remains as unexplained puzzle. This study contributes to knowledge-innovation literature by examining the missing link between different types of knowledge and innovation generation and adoption. It also helps to comprehend the enabling factors through which firms capitalize upon, and obtain, a sustainable competitive advantage.

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References

1990Absorptive Capacity: A New Perspective on Learning and Innovation 1997Dynamic capabilities and strategic management 2003The Theory of Economic Development 1991Exploration and Exploitation in Organizational Learning 2000Social Capital in the Creation of Human Capital 1998The Knowledge-Creating Company 1995Bowling Alone: America's Declining Social Capital 1998Social Capital, Intellectual Capital, and the Organizational Advantage

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