Do All Intellectual Capital Dimension Affects Innovation Capability? (Evidence from Indonesian Food and Beverage Industry)

Dian Mayastika Molthar,Nurul Indarti

doi:10.24002/kinerja.v25i1.4208

Dian Mayastika Molthar, Nurul Indarti

Open Access

https://doi.org/10.24002/kinerja.v25i1.4208

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Journal: KINERJA	Publication Date: Apr 1, 2021
Citations: 2	License type: cc-by

Affiliation: Universitas Kristen Immanuel, Universitas Gadjah Mada

Abstract

Using a survey in 120 companies in the food and beverage industry such restaurants and café, manufacture, and retail in Indonesia, this study discusses the effect of intellectual capital on innovation capability. The results prove that not all of intellectual capital dimension support innovation capability. Structural capital and relational capital are knowledge assets that play an important role for the company's ability to innovate. In addition, other findings from this study reveal that human capital has no significant effect on innovation capability. That is because in the context of three companies in the food and beverage industry in Indonesia, the innovation decision is not related to the employee or human capital aspects. Furthermore, this research also has not been able to prove that relational capital moderates the positive influence of human capital on innovation capability. That is because the formation of human capital aspects such skills of employees in this industry are not related to the relations and collaboration of the company.Keywords: human capital, structural capital, relational capital, innovation capability

Highlights

In the era of knowledge-based competition, competitive advantage is obtained through the creation of new knowledge from the unique combination of companies (Fleming, 2001) such as intellectual capital
This research is aimed to examining the effect of intellectual capital on innovation capability where the object of research focuses on three companies in the food and beverage industry in Indonesia such restaurant and café, manufacture, and retail
The results prove that structural capital and relational capital has positive effect on innovation capability in the food and beverage industry in Indonesia

Summary

Introduction

In the era of knowledge-based competition, competitive advantage is obtained through the creation of new knowledge from the unique combination of companies (Fleming, 2001) such as intellectual capital. This study aims to examine the positive effect of three dimensions of intellectual capital namely human capital (i.e., competences and skills), structural capital (i.e., systems and databases), and relational capital (i.e., networks or relationships) on the ability of corporate innovation. This is due to several reasons as follows. The relationship between intellectual capital and innovation capability requires more empirical research (Buenechea-Elberdin, 2017; Wu and Sivalogathasan, 2013). Previous research on intellectual capital and innovation (i.e., Carmona-Lavado, Cuevas-Rodríguez, and Cabello-Medina, 2013; Hsu and Fang, 2009; Leitner, 2011) only focused on intellectual capital not on the impact that can be driven by intellectual capital towards innovation (Dumay et al, 2015; Ferenhof et al, 2015)

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