Development of innovation capability through intellectual capital, psychological capital, authentic leadership, and knowledge management in the trading industry

PurposeMany authors have recognised multiple research gaps at empirical and theoretical levels regarding the interplay between the management of intellectual capital (IC) and the development of innovation capabilities from a strategic approach to technological opportunities, especially in knowledge-intensive business services (KIBS). This paper endeavours to provide answers to some of these research questions by relying on empirical observations in the context of an emergent economy.Design/methodology/approachAfter reviewing the literature through the lenses of the IC and knowledge-based view, the paper operationalises IC as a formative construct and explores its relationships with Technological Orientation, Innovativeness and Innovative Performance. This investigation employs structural equation modelling to analyse data collected through a questionnaire from a sample of KIBS members in a cross-sectional study.FindingsThe research confirms the positive influence of human capital on a company’s Technological Orientation, which in turn impacts Innovative Performance in KIBS. Structural and relational capital positively affect Innovativeness and the latter directly impact performance. All other IC components were found to determine the dependent variables through a mediated effect.Research limitations/implicationsThis research has several limitations. Firstly, it has to be stressed that the significance of the statistical findings is dependent on the sample size, and the results’ explanatory power and effect size cannot be extrapolated to other demographics in different regions or sectors. Secondly, it should be observed that the results of the empirical research can be affected by the respondents’ subjectivity in assessing the items and their perception of reality when providing the answers. Thirdly, this is a cross-sectional study, and results concerning, e.g. the Innovative Performance may be subject to change over a longer period of time, though items in this construct have inquired about results obtained over time. Finally, given the purpose of the research, the outcome may be limited to the research model design. Future research could attempt to replicate the results by investigating other demographics and other regions and by employing a longitudinal study.Practical implicationsThe study highlights the value added by adequate management of all IC elements, as they affect the output of organisational business strategies and processes in an integrated manner. An organisational technological strategy that is based on up-to-date technologies, the embeddedness of technology in the organisational processes and the staff’s continuous technical/digital upskilling are conducive to competitive advantage and business success in KIBS. High competencies and skills that are continuously renewed through training as well as the acquisition of digital competencies, play an influential role in generating innovative capabilities that lead to business performance. Flexible and efficient business processes, the company’s support for informal knowledge sharing between employees and its ability to exploit new knowledge to sustain growth are prerequisites for KIBS’ success. Promoting an organisational culture of trust and collaboration, making the staff feel valued and satisfied and effectively using digital technologies for communication are all significant factors in supporting the development of innovation capabilities.Social implicationsThis research proves that IC management, viewed as an integrated construct comprising human, structural and relational capital management, significantly affects Innovativeness through the development of technology-based innovative capabilities. Furthermore, in a context where KIBS (and other companies) nowadays compete in a digital environment, technology and technical knowledge are paramount for a company’s success. The study validates in an aggregated model the role played in innovation by the management of knowledge and technical knowledge embodied in the employees’ competencies and know-how, the management of tacit and explicit knowledge developed by the structural capital and the management of stakeholder knowledge accumulated by the relational capital.Originality/valueThis research takes a fresh and comprehensive perspective to investigate how IC management can impact Innovativeness and Innovative Performance in KIBS by focusing on the nexus with the organisations’ Technological Orientation. The paper makes an original contribution to research concerning IC, KIBS, technology and innovation based on empirical evidence and a new approach to assessing IC as an aggregate rather than by looking at individual components.

Objective: This paper explores the relationship between intellectual capital and knowledge management in construction companies and how they impact organisational performance. Theoretical Framework: The construction industry is characterized by a unique set of challenges related to knowledge management and intellectual capital. Project-based work is a dominant feature, necessitating robust knowledge sharing among stakeholders. Method: This article employs a statistical approach to examine the variables under investigation through a Structural Equation Modelling (SEM). The hypothesis proposed was tested using this methodology. Data were collected via a questionnaire administered to 88 individuals occupying managerial roles in small and medium-sized enterprises (SMEs) operating within the construction industry. Results and Discussion: The study concludes that intellectual capital and knowledge management have a significant positive impact on the performance of construction companies and recommends that these concepts be integrated into the management practices of construction companies. Research Implications: Correct combination by companies in the construction sector of the constructs intellectual capital and knowledge management can create dynamics that significantly improve the performance of the organisations from the construction sector. Originality/Value: Construction companies, like any other businesses, can benefit from effective knowledge management and the efficient use of intellectual capital to increase their competitiveness and long-term success.

The objective of this review study is to identify the role of knowledge in combining Intellectual Capital (IC) and Knowledge Management (KM) within an organization. Though the literature suggests a relationship between IC and KM, the recognition of the best bridge in building this relationship is yet to be discussed and hence the theoretical and conceptual relationship among knowledge, IC and KM is still a dilemma. Thus, this review attempts to identify the knowledge as the bridging source of IC and KM. According to the literature, different arguments were found on this phenomenon, and no evidence is found merely in reviewing how knowledge plays a role in linking IC and KM. Therefore, this study will fill this untouched literature gap by reviewing the previous research articles in the fields of IC and KM. This study adds new knowledge to the existing literature in solving the unsolved puzzle of the role of knowledge in combining IC and KM. This review study attempts to conclude the theoretical relationship of IC with knowledge and the theoretical relationship of KM with knowledge. For this review study, previous research articles were reviewed, and it is identified what kind of relationship exists among IC, KM and knowledge. It was found that knowledge exists in an organization in the form of stock as well as in terms of a flow. Most of the scholars in IC and KM arena argued that the two forms of knowledge, i.e., the form of stock, is the static form of knowledge, while the form of flow is the dynamic form of knowledge. The review further revealed that the static form of knowledge could be substituted with IC and the dynamic form of knowledge can be substituted with KM. Hence, it can be concluded that, based on the various arguments and opinions found from the review, IC is the knowledge stock in an organization, while the KM is the knowledge flow in the organization. Finally, the conclusion of this review study is, knowledge uses its two forms, i.e., stock and flow or static and dynamic to combine the concept of IC and concept of KM.

Purpose– The purpose of this paper is to analyse intellectual capital (IC) in SMEs. In particular two research questions are posed: how SMEs acquire or develop knowledge and intangible resources; and how they manage and exploit IC.Design/methodology/approach– An in-depth case study of an Italian SME operating in the automobile industry is carried out in order to answer the two research questions.Findings– The case study evidences the impossibility to sharply divide all of the knowledge-related elements of a firm into the three generally accepted categories of human, organisational (structural) and relational capital. The analysis of IC as a set of stock of resources is important but really partial due to the fact that IC and knowledge continuously change. In this light, the focus on activities and processes help in understating how the firm manages IC. In the studied SME, formal and informal knowledge coexist but in different areas of the firm. Again, the relationships with external stakeholders, suppliers and clients especially, are the source for improving IC. The case study also supports the important role that dialogue and familiarity play in knowledge management. However the focus of management is not knowledgeper se, but the solution to problems the firm must deal with, IC and knowledge being just one of the issues to be considered in order to solve problems.Research limitations/implications– The paper is useful since it addresses the management of IC in SMEs which is a topic under-researched with respect to the economic importance of SMEs. The conclusions of the work, emerging from an individual case study analysis, cannot be generalised. However, they offer support for other studies findings and highlight some specificities of the way SMEs manage IC.Practical implications– The paper explores the characteristics of IC management in SME in order to contribute towards the differentiation of the view of IC in relation to the “size” of the firm. Approaches originally developed for larger firms fail to consider SMEs characteristics, which indeed are not smaller large firms; therefore, it is in general impossible to think of SME management systems as simpler or smaller than those adopted by large firms. The key point is in fact that SMEs (at least the one here analysed) have management systems which are ontologically different.Originality/value– Besides the relevant role of SMEs in economy, very few papers have been published on the way IC is developed and managed in SMEs. A gap therefore exists between the economic importance of SME and the attention IC research has given to them, which calls for more research on this area. The paper is a step forward on the way of reducing that gap, since it provides a case study on knowledge and IC management within an Italian SME. Finally, the analysis reinforces similar results of other studies adopting a dynamic perspective for the analysis of IC, which found IC management in SMEs to be more based on informal systems.

PurposeThis study aims to examine the influence of intellectual capital and knowledge management on competitive advantage with the mediation role of innovativeness in the Pakistan manufacturing industry. Moreover, differentiation strategy is used as a moderator between innovativeness and competitive advantage.Design/methodology/approachThe data was collected from 387 manufacturing firms in Pakistan through questionnaires. Purposive random sampling was used to collect data. The partial least square structural equation modeling (PLS-SEM) method is used to test the proposed hypotheses. This study followed multiple regression analyses to see the influence of intellectual capital, knowledge management, innovativeness and differentiation strategy on competitive advantage.FindingsThe results elucidate that intellectual capital and knowledge management significantly determines innovativeness and competitive advantage. Moreover, innovativeness significantly mediates between intellectual capital, knowledge management and competitive advantage. Besides, innovativeness significantly determines competitive advantage. Business strategies significantly lead to competitive advantage. Finally, business strategies significantly moderate between innovativeness and competitive advantage.Practical implicationsThe research highlight an important issue that how manufacturing sector management uses intellectual capital, knowledge management, innovativeness and business strategies in determining competitive advantage. Besides, it covers the gap and assists the management of the manufacturing sector to focus on exogenous constructs to examine competitive advantage.Originality/valueThis study adds value to the body of knowledge by focusing on predictors that impact competitive advantage. This initial study determines intellectual capital and knowledge management influence on competitive advantage and innovativeness as a mediator by using resource orchestration theory. Moreover, differentiation strategy is used as moderating variable between innovativeness and competitive advantage. The managers, students and researchers can obtain benefits from this study.

PurposeThis paper experimentally examines the concept of intellectual capital in the Iranian space industries. The first objective of this study is to validate a model for assessing the relationships among some factors of intellectual capital and knowledge management; and organizational performance. The second objective is to evaluate the mediating role of some of them in the relationship between the intangible assets and organizational performance.Design/methodology/approachThe research is designed to utilize a systematic sampling and survey method. Intellectual capital here is decided to be four items of human, structural, innovation and cultural capital while two items of “knowledge development and sharing” and “learning and knowledge application” are considered for knowledge management. The structural equation modeling approach is used to validate the research model.FindingsThese analyses suggest that human capital and structural capital are positively associated with organizational performance. The findings also indicate that both cultural capital and knowledge management practices fully mediate the effects of intangible assets on organizational performance while the latter does more.Originality/valueThis study adds to the literature in two valuable ways. First, it validates a model for assessing the associations among organizational performance and adoption of knowledge management and intellectual capital. Second, it offers important results on the identification of mediating role of cultural capital and knowledge management practices.

ABSTRACTTwo important streams of the literature have examined intellectual capital (IC) and knowledge management (KM). Surprisingly, they have developed in parallel, without any empirical research on the relationship between them. This article empirically examines how IC and KM affect each other, and also investigates their consequences, viewing three intermediate consequences (dynamic capabilities, efficiency, and innovativeness) to mediate their effects on firm performance. In addition, this article examines the effects of the organization's culture on IC and KM. To address these issues, a comprehensive model is developed and tested using a combination of survey and secondary data of 533 companies in Taiwan. The results support the theoretical model. Major findings include the following: IC affects KM and dynamic capabilities; KM facilitates innovation but not dynamic capabilities or IC; a learning culture facilitates IC and innovation but not KM; firm performance depends on efficiency and innovation, but not directly on dynamic capabilities; and efficiency does not depend on any of the other constructs in the study. The article's implications for research and practice are examined.

Chief executives have recently identified knowledge management (KM) as a "must do" item for their firms. These executives have also contended that social capital is a catalyst in effectively implementing knowledge management. However, the mechanism through which social capital influences knowledge management requires further study. This study examines the influence of social capital and business operation mode on knowledge creating activities, intellectual capital (IC) and knowledge management effectiveness. After a series of interviews with experts and a questionnaire survey, this study reached the following findings: firms implementing higher levels of authority delegation and social capital tend to engage in more knowledge-creating activities and have more intellectual capital; levels of intellectual capital tend to significantly influence KM effectiveness; social capital and delegation of authority are significant moderators of the relationships between knowledge-creating activities and intellectual capital.

The study explores the relationship between intellectual capital, knowledge management on firm performance and the role of speed and quality of innovation as mediating variables. Data was collected from MSME actors through a structured questionnaire. The sample used as many as 275 MSME actors in Lumajang Regency and analyzed using Smart PLS 3. The results of the study prove that intellectual capital and knowledge management significantly affect innovation, both the speed of innovation and the quality of innovation. Intellectual capital cannot directly affect the company's performance, but knowledge management can directly affect the company's performance. Overall, the role of speed and quality of innovation mediates the relationship between intellectual capital and knowledge management on firm performance.
 Keywords: Intellectual Capital; Knowledge Management; Innovation; MSME Performance.

Purpose: The main purpose of the research presented in the article was to diagnose the intellectual capital management process in small and medium-sized enterprises in the Lower Silesian Voivodeship. To achieve this goal, the first part of the article explains the meaning of the term „intellectual capital" based on the scientific literature in the field of management, and then, based on the conducted research, an attempt was made to answer the following questions: which factors determine the process of „intellectual capital management" and what benefits it brings it to companies. Design/methodology/approach: For the research presented in the article, an analysis of the literature in the field of intellectual capital management, knowledge management and competence management was used. Literature studies also concerned secondary sources, which were messages from studies of a similar scope. The use of various research methods allowed to obtain a broader context of the studied phenomenon and ensured a higher quality of research. This differentiation was aimed at obtaining consistency of empirical grounds for inference. The diagnostic survey was adopted as the leading method. Other methods used in the work performed auxiliary (supplementary) functions. Findings: „Intellectual capital management" in the global economy is a resource of strategic importance affecting the market value of the organization itself and providing a competitive advantage. Building a significant intellectual capital of an organization in the VUCA environment requires the use of appropriate methods and tools supporting management, systematic measurement, constant comparison with the competition, elimination of barriers to knowledge sharing. Research limitations/implications: In the future, research will be continued on a larger research sample Practical implications: The article presents the results of research conducted among several dozen small and medium-sized enterprises in Lower Silesia. The research is of a pilot nature, but the research results are very interesting and encourage research on a larger scale. They are a valuable source of information for managers responsible for creating the intellectual capital of the organization in terms of acquiring and sharing knowledge. In turn, for people responsible for recruiting employees, the results may be useful in developing a candidate profile, in particular when identifying key competences of knowledge workers. The results also indicate the demand of the Polish market (especially medium-sized companies) for IT infrastructure that enables the acquisition, processing and collection of information. Originality/value Based on empirical research, the article proposes an original set of system solutions in the field of human capital management to improve the functioning of the organization in the VUCA environment. Keywords: intellectual capital management, knowledge management, human capital. Category of the paper: Research paper.

PurposeNowadays, the aspects of the intellectual capital (IC) management have become important, valuing it as an integral part of the organisation. Researchers emphasise the strategic importance of IC management, particularly in the context of satisfying the stakeholders' interests and value creation. However, the existing studies reflect individual elements of IC management, not analysing them as a system which is a part of the organisational management system, and hence it is impossible to draw valid conclusions on the impact of IC on the organisation's performance. The aim of the paper is to describe an approach to the elaboration of the IC management strategy and its integration into the organisation's management system.Design/methodology/approachThe developed approach is based on a holistic and systemic view of the organisation, where IC management is integrated into the organisation's management . This approach is based on the structure of IC developed by Lentjušenkova and Lapina (2016). In this structure, business processes are the IC component that unites the other three ones – human capital, technologies and intangible assets. The study has used induction and deduction, as well as analytical and synthetic qualitative research methods, including logical constructive and conceptual (concept) analysis.FindingsElaborating the organisational strategy by taking into account the stakeholder interests, the organisation is able to ensure sustainable development. Using the integrated management approach, IC management is integrated into the organisation's activities and joint operational strategy. In this case, IC management becomes an integral part of the organisation's activities functioning in conjunction with the other organisation's systems, and it is integrated into all ongoing business processes.Research limitations/implicationsThe approach the authors have proposed to IC management could be adapted by small and medium-sized companies. Using it, companies do not need to create special functional units or division, because IC becomes an integral part of organisation's processes.Originality/valueIn previous studies, business processes were considered as one of the components of IC. In the study’s approach, business processes imply integration of IC into the overall organisation management system. As a framework for the proposed approach, the authors have used the Deming cycle “Plan-Do-Check-Act” that envisages dividing the development and implementation of the IC management and development strategy into four phases, with a clear allocation of tasks and a defined outcome for each individual phase. To use this approach, it is enough for organisations to conduct an analysis of processes and, depending on the strategic goals of the organisation, make additions related to managing IC.

This study examines the impact of Intellectual Capital (IC), Relational Capital (RC), and Innovation Capability (INC) on the performance of Micro, Small, and Medium Enterprises (MSMEs), while also testing the moderating role of Innovation Capability. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that both IC and RC positively and significantly influence MSME performance. Intellectual Capital is identified as the most dominant factor, demonstrating that knowledge, skills, and organizational systems play a critical role in enhancing business efficiency and productivity. Relational Capital also contributes to performance by leveraging networks with customers, partners, and institutions as strategic resources. Furthermore, Innovation Capability emerges as a direct predictor of performance, underscoring its importance in building adaptability and competitiveness. However, its moderating effect on the relationship between IC, RC, and performance is not significant. These results provide strong empirical evidence for MSMEs to prioritize the management of intellectual and relational capital while strengthening innovation capability to achieve sustainable growth.

This study refers to the theory of knowledge-based view which revealed knowledge as the source of the organization to achieve competitive advantage. This study applies intellectual capital and knowledge management as variables to test the effect on firm performance. The research data were garnered using primary data in the form of a questionnaire from directors of rural banks in the Riau Islands Province of Indonesia. Hypothesis testing using Structural Equation Modelling (SEM) method. The results showed that intellectual capital and knowledge management have a positive and significant impact on firm performance.

Research Aims: This study aims to analyse the influence of intellectual capital and innovation capability on business performance in the leather MSME sector in Garut Regency, with entrepreneurial orientation as a mediating variable. Design/methodology/approach: The study applied a quantitative approach through survey techniques. A total of 106 MSME respondents were selected using purposive sampling. Data were collected from leather MSME owners and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 3.0 software. This analysis was employed to examine the relationships among intellectual capital, innovation capacity, entrepreneurial orientation, and business performance. Research Findings: The results indicated that intellectual capital and innovation capability significantly influenced entrepreneurial orientation. Furthermore, intellectual capital and entrepreneurial orientation positively affected business performance, whereas innovation capability did not directly impact business performance. Additionally, entrepreneurial orientation did not mediate the relationship between intellectual capital and business performance, but successfully mediated the relationship between innovation capability and business performance. Theoretical Contribution/Originality: This study contributed to the literature by integrating intellectual capital and innovation capability as key determinants of MSME business performance, particularly in the leather industry. The findings provided empirical evidence supporting the importance of entrepreneurial orientation in enhancing the adaptability and sustainability of MSMEs in dynamic market environments. This study offers originality by focusing on leather MSMEs in Garut Regency an underexplored yet high-potential sector, thereby filling a research gap and offering contextual insights for similar traditional industries in emerging economies. Keywords: Business Performance, Intellectual Capital, Innovation Capability, Entrepreneurial Orientation, Leather MSMEs

Knowledge management, intellectual capital and entrepreneurship: a structured literature review