Intellectual Capital, and Knowledge Processes for Organizational Innovativeness across Industries: The Case of Poland – the full version

Abstract

Purpose: This study aims to present the overview of intellectual capital creation micro-mechanisms concerning formal and informal processes. The organizational culture, transformational leadership, and innovativeness are also included in the investigation as ascendants and consequences of the focal relation of intellectual capital and processes. Method: The empirical model was developed using the structural equation modeling (SEM) method based on a sample of 1,418 Polish workers employed in the construction, healthcare, higher education (HE), and information technology (IT) industries. Findings: The study exposes that the essence of transformational leadership innovativeness oriented is developing all intellectual capital components. To do so, leaders must support both formal and informal processes through the organizational culture of and learning. Furthermore, for best results of the transformation into intellectual capital, the learning culture must be shaped by both components: learning climate and acceptance of mistakes. Originality: This study presents the big picture of all intellectual capital creation micro- mechanisms linking transformational leadership with organizational innovativeness and explains the knowledge paradox identified by Mabey and Zhao (2017). This explanation assumes that intellectual capital components are created informally (i.e., human, and relational ones) and formally (i.e., structural ones). Therefore, for best effects, both formal and informal processes must be supported. Furthermore, this study exposes that the intensity of all explored micro-mechanisms is industry-specific. Implications: Presented findings can be directly applied to organizations to enhance innovativeness. Namely, leaders who observe that the more is formally managed in their organizations, the less effective the exchange is - should put more effort into supporting informal processes to develop human and relational intellectual capital components smoothly. Shortly, leaders need to implement an authentic learning culture, including the mistakes acceptance component, to use the full organizational potential to achieve intellectual capital growth. Intellectual capital growth is essential for innovativeness.