Impact of Intangible Capital, Organisational Culture, and Innovative Capabilities on the Organisational Performance of the Indian IT Industry

Abstract

There is well-researched evidence for the linkages among intellectual capital, innovation capability, and organisational performance. However, no concrete evidence of such a relationship can be identified in knowledge-based industries such as the information technology (IT) sector. This study examined how organisational performance, organizational culture, and intellectual capital (human capital and organizational capital) are interconnected in the Indian IT sector and explored further how innovation capability can play a mediating role. In Bangalore, Hyderabad, and Chennai, 486 middle-level employees of selected IT companies were randomly selected for data collection. The authors used Smart PLS 3. A positive substantial impact is demonstrated by human capital, organizational capital, and culture on innovation capability, and an equally favorable substantial impact is demonstrated by innovation capability, human capital, and organizational capital on organizational performance.