The impact of intellectual capital and knowledge flows on incremental and radical innovation

2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Knowledge Flows ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Content Type ◽  
Radical Innovations ◽  
The Impact

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

The impact of knowledge management strategies on the relationship between intellectual capital and innovation: evidence from SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sahar Hayaeian ◽  
Reza Hesarzadeh ◽  
Mohammad Reza Abbaszadeh
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Partial Least Square ◽  
Least Square ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to investigate the moderating role of knowledge management (KM) strategies in developing the effect of intellectual capital (IC) on innovation for small- and medium-sized enterprises (SMEs). Specifically, the current study explores how different interactions between IC and KM strategies lead to more powerful innovation in SMEs.Design/methodology/approachThis study analyzes survey responses from 170 owners/managers of SMEs in Iran. The study uses partial least square structural equation modeling methods within Smart PLS software.FindingsThis study reveals that first IC has an excellent level of engagement with both incremental and radical types of innovation, but its engagement level with radical innovation is higher than that for incremental innovation. Second, the human capital component of IC has a direct positive impact on radical innovation although it has no significant impact on incremental innovation. Third, the personalization strategy of KM positively moderates the impact of human capital on both incremental and radical innovation.Originality/valueThis paper is an empirical attempt in SMEs to combine IC and KM strategies to strengthen innovation. It presents research community for SMEs of a developing country that has been investigated in a limited way compared to large firms of developed nations and provides valuable insights into further research.

Enhancing radical innovation performance through intellectual capital components

2017 ◽  
Vol 18 (4) ◽  
pp. 789-806 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella
Keyword(s):  
Intellectual Capital ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Content Type ◽  
Key Factor ◽  
Ic Testing ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose In today’s knowledge economy the ability to innovate and develop new products is a key factor to sustain firm performance. Within this context, analysing the role of different components of intellectual capital (IC) becomes of foremost importance, as well as an under-investigated issue for small- and medium-sized enterprises (SMEs). The purpose of this paper is to investigate the impact of human, organisational and relational capital (RC) on radical innovation performance (RIP), as well as to examine whether organisational capital (OC) and RC mediate the relationship between human capital (HC) and RIP and whether OC moderates the relationship between RC and RIP. Design/methodology/approach The methodology consisted of a factor analysis and different regression models to test for mediation and moderation. The analyses are carried out on a sample of 150 micro firms and SMEs involved in the production of machinery or instruments and located in Italy. Findings Results show that HC is directly associated to RIP, as well as OC and RC that totally mediate the relationship between HC and RIP. Moreover, OC positively moderates the relationship between RC and RIP. Originality/value This study is particularly interesting because it adopts an overarching perspective on IC testing the interplay between the different components of IC. In addition, it focusses on the SME context which is under-investigated as far as IC and performance measurement is concerned.

The impact of intellectual capital on innovation generation and adoption

2016 ◽  
Vol 17 (4) ◽  
pp. 675-695 ◽  
Author(s):  
Mir Dost ◽  
Yuosre F. Badir ◽  
Zeeshan Ali ◽  
Adeel Tariq
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Innovation Adoption ◽  
Organizational Capital ◽  
Content Type ◽  
The Impact ◽  
Innovation Generation

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.

Resource scarcity in SMEs: effects on incremental and radical innovations

2017 ◽  
Vol 40 (2) ◽  
pp. 195-217 ◽  
Author(s):  
Tino Woschke ◽  
Heiko Haase ◽  
Jan Kratzer
Keyword(s):  
Electrical Engineering ◽  
Radical Innovation ◽  
Resource Scarcity ◽  
Financial Resource ◽  
Innovation Performance ◽  
Analysis Of Covariance ◽  
Content Type ◽  
Radical Innovations ◽  
Resource Limited ◽  
The Impact

Purpose This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to scrutinise whether resource scarcity among SMEs has an effect on their innovation performance. Design/methodology/approach The sample was based on panel data for 302 SMEs from the mechanical and electrical engineering sectors. Firms were divided into four groups by resource scarcity: human resource scarcity, financial resource scarcity, both types of resource scarcity and no resource scarcity. To test for significant inter-group differences in innovation performance, multivariate analysis of covariance and a multiple discriminant function analysis were carried out. Findings The results indicated that resource scarcity can have a positive effect on incremental but not radical innovation performance in SMEs. However, the authors found this to be true for financial resource scarcity only. Research limitations/implications These results may not be applicable to all SMEs, as the authors only focused on the industries of mechanical and electrical engineering. Future studies should focus on analysing the internal structures of SMEs that led to this study’s results. More research should also be conducted on ways that resource-limited SMEs can appropriately conduct radical innovations. Finally, resources should be made available for both practitioners and academics, explaining why the acquisition of resources is not always be the best option in response to limited resources. Practical implications These results indicate that resource-constrained SMEs, especially those that struggle with limited finances, should concentrate their innovation activities on incremental rather than radical innovations. Originality/value This study closes the knowledge gap as to whether it is beneficial for resource-limited SMEs to focus on either incremental or radical innovation. From the theoretical viewpoint, the resource-based view provides two strategies for resource-limited SMEs: acquiring new resources or recombining available resources. The authors were able to clearly demonstrate for the first time that the recombination of resources is especially important for SMEs that specifically wish to pursue incremental innovation.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Organizational Agility ◽  
Content Type ◽  
Technological Turbulence ◽  
The Impact

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

Exploring the impact of intellectual capital on company reputation and performance

2018 ◽  
Vol 19 (5) ◽  
pp. 915-934 ◽  
Author(s):  
Gianluca Ginesti ◽  
Adele Caldarelli ◽  
Annamaria Zampella
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Corporate Reputation ◽  
Intangible Asset ◽  
Competition Authority ◽  
Data Set ◽  
Content Type ◽  
Capital Efficiency ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies. Design/methodology/approach The paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses. Findings Results support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance. Research limitations/implications The study focuses on a single country; it is not free from the imprecisions of Pulic’s VAIC model. Practical implications This paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness. Originality/value This is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.

The effect of network structure on radical innovation in living labs

2016 ◽  
Vol 31 (6) ◽  
pp. 743-757 ◽  
Author(s):  
Seppo Leminen ◽  
Anna-Greta Nyström ◽  
Mika Westerlund ◽  
Mika J. Kortelainen
Keyword(s):  
Network Structure ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Network Structures ◽  
Content Type ◽  
Radical Innovations ◽  
Strategic Objective ◽  
Living Lab ◽  
Multiplex Network ◽  
Living Labs

Purpose This study aims to focus on living labs as a means of achieving radical innovation by discussing the differences in their network structure and its effect on the type of innovation outcome. Design/methodology/approach This research analyses 24 living labs in four countries using qualitative methods. Findings A specific network structure referred to as a distributed multiplex supports radical innovation in living labs, while distributed and centralized network structures support incremental innovations. Also, the results suggest that radical innovation depends on the driving actor and objectives in a living lab. Research limitations/implications A bias on the perceived novelty of innovation may exist when analyzing data collected through interviews with a limited number of living lab participants compared to a large number of informants. This study proposes a two-dimensional framework based on the network structure to investigate innovation in living labs. Practical implications This paper offers a classification tool to identify, categorize and make sense of organizations’ participation in open innovation networks and in living labs. Originality/value The study provides evidence that, although the distributed multiplex network structure supports the emergence of radical innovations, the distributed and centralized network structures support incremental innovation. A combination of a provider- or utilizer-driven living lab and a distributed multiplex network structure, with a clearly defined and future-oriented strategic objective, offers good potential for radical innovation to occur.

Does intellectual capital allow improving innovation performance? A quantitative analysis in the SME context

2017 ◽  
Vol 18 (2) ◽  
pp. 400-418 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Roberto Filippini
Keyword(s):  
Intellectual Capital ◽  
Innovation Performance ◽  
Three Dimensions ◽  
Incremental Innovation ◽  
Primary Data ◽  
High Tech ◽  
Content Type ◽  
Significant Difference ◽  
Confirmatory Factor ◽  
Innovation Capital

Purpose The purpose of this paper is to investigate the association between the strength of intellectual capital (IC) and small- and medium-sized enterprise (SME) innovation performance. Design/methodology/approach Primary data of 150 SMEs belonging to manufacturing medium-high tech industries were collected through a survey. The methodology consists of a confirmatory factor analysis and a cluster analysis, complemented by a t-test, to assess whether there is a significant difference in terms of innovation performance of SMEs characterized by a different strength of IC. Findings Overall, the findings show that SMEs of the sample can be divided into two groups characterized by a different strength of IC, and those SMEs disclosing a higher strength of IC, in terms of human capital, innovation capital and relational capital, exhibit a significantly higher radical and incremental innovation performance. Practical implications The present study provides SME entrepreneurs and managers with an empirical evidence that possessing strong IC in its three dimensions seems to help SMEs reinforce their ability to generate both radical and incremental innovation. This calls that SME entrepreneurs and managers need to identify and effectively manage IC in order to strengthen and effectively leverage their investments on IC. Originality/value This study is particularly relevant because, instead of focusing on single categories of IC as previous studies mainly do, it adopts an overarching perspective of the dimensions of IC and their impact on both radical and incremental innovation performance. Moreover, it focuses on the SME context which has been less investigated than large firms within the domain of IC.

Intellectual capital role in ambidexterity emergence

2017 ◽  
Vol 18 (4) ◽  
pp. 733-744 ◽  
Author(s):  
Susana Fernández-Pérez de la Lastra ◽  
Natalia García-Carbonell ◽  
Fernando Martín-Alcázar ◽  
Gonzalo Sánchez-Gardey
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Organizational Capabilities ◽  
Integrative Model ◽  
Alternative View ◽  
Organizational Ambidexterity ◽  
Organizational Capital ◽  
Content Type ◽  
Multilevel Perspective

Purpose Considering the inconclusive results in the literature on the way organizations create ambidextrous organizational capabilities, the purpose of this paper is to present an alternative theoretical model of three different paths through which ambidexterity is built. From a multilevel perspective, the model describes how specific combinations of the facets of intellectual capital – human, social and organizational capital – can synergistically work to reach ambidexterity. Design/methodology/approach The study is based on main arguments from multilevel and intellectual capital literature. The multilevel approach allows the authors to consider a broader perspective to define three specific modes to create ambidextrous capabilities. Additionally, the intellectual capital literature completes the model, with the input (human capital), mechanisms (social capital) and the infrastructure (organizational capital) needed to develop ambidexterity. With the integration of both frameworks, the model explains how different types of ambidexterity are generated at diverse firm levels – individual, group and organizational, following different and complementary paths. Findings This research goes beyond the traditional arguments on how organizations develop simultaneously exploration and exploitation activities, proposing an integrative model of three complementary modes: path 1 (ambidexterity based on individual human capital); path 2 (ambidexterity through social capital) and path 3 (ambidexterity through organizational capital). These paths link organizational levels in organizations, showing the accumulative process of ambidexterity from a multilevel perspective. Originality/value The paper offers an alternative view expanding the ongoing discussion in the ambidexterity field. There is a lack of configurational models in the literature that describe, from a synergistic point of view, these complementary paths to achieving organizational ambidexterity. This approach contributes to explaining that not only individual ambidextrous human capital is needed to generate organizational ambidexterity, but also that specialist human capital could be a source of ambidexterity.

Improving Tourism Innovation Performance: Linking Perspectives of Asset Specificity, Intellectual Capital, and Absorptive Capacity

2020 ◽  
Vol 44 (6) ◽  
pp. 908-930
Author(s):  
AiHua Wu
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Asset Specificity ◽  
Innovation Performance ◽  
Intermediate Level ◽  
Managerial Practices ◽  
Mediating Role

This study seeks to better understand the link of a tourism firm’s intellectual capital to innovation performance, empirically testing the mediating role of absorptive capacity and moderating effect of asset specificity. Findings from 217 Chinese tourism firms indicate that absorptive capacity plays a mediating role in the capital–performance link, and the effect of social capital to absorptive capacity is highest when asset specificity is at an intermediate level, having an inverted “U” shape. The result indicates that the effect of the human capital is “U” shape with asset specificity. Thus, the findings make a few new important insights to the tourism innovation literature and also offer a number of vital implications for tourism managerial practices.

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