Effects of intellectual capital on innovative performance

• Published in: Management decision 2015-02, Vol.53 (1), p.40-56
• Main Authors: Han, Yuqian, Li, Dayuan
• Format: Article
• Language: English
• Subjects: Management science & operations; Management science/operations research
• ISSN: 0025-1747; 1758-6070
• DOI: 10.1108/MD-08-2013-0411

Purpose – The purpose of this paper is to demonstrate the relationship between intellectual capital and innovative performance, and to specify the boundary conditions and mechanisms of the relationship from a knowledge-based dynamic capability perspective. Design/methodology/approach – This study empirically analyzes the impact of intellectual capital on innovative performance and the role knowledge-based dynamic capability plays with a sample of 217 firms in China. To test the research hypotheses, regression analysis is applied. Findings – The results show that intellectual capital positively affects innovative performance, and knowledge-based dynamic capability is a mediator rather than a moderator which partly mediates the relationship between intellectual capital and innovative performance. Practical implications – The findings suggest that realizing superior innovative performance is dependent on a firm’s intellectual capital and its ability to sense opportunities and threats, to make timely and correct decisions, and to facilitate necessary changes efficiently. Originality/value – This study is the first to clarify whether knowledge-based dynamic capability plays a moderating role or a mediating role between intellectual capital and innovative performance. The present study thus helps move forward the understanding on the conditions and mechanisms of the effects of intellectual capital.