INTELLECTUAL CAPITAL AND INNOVATIONS: IS ORGANISATIONAL CAPITAL A MISSING LINK IN THE SERVICE SECTOR?

Abstract

This paper analyses the direct and indirect effects of social capital (SC), human capital (HC) and customer capital (CC) on the different types of innovations via organisational capital (OC) in the service sector. The study gathered data from 198 managers in the Egyptian banks (54% response rate). The research findings indicate that product, process and organisational innovations are positively associated with OC, SC and HC have direct and indirect positive effects on both product and organisational innovation via OC. It seems that SC and HC do not have a direct influence on process innovation because OC fully mediates the relationship between SC, HC and process innovation. This study explored the direct and indirect positive effects of CC on three types of innovation through OC. Additionally, all organisational, process and product innovations are found to be inter-correlated. The most significant influence of intellectual capital (IC) is on product innovation, followed by organisational innovation, whereas the least significant influence is on process innovation.