Nexus between intellectual capital and innovation performance: the mediating role of firm’s attractiveness and knowledge sharing

Abstract

Purpose Intellectual capital has recently gained significant attention for achieving a competitive advantage for firms. Accordingly, this study aims to examines the impact of intellectual capital on small and medium enterprises (SMEs) innovation performance. Additionally, it also examines the mediating role of firm’s attractiveness (FATR) and knowledge sharing (KS) in small enterprises of India’s National Capital Region (NCR). Design/methodology/approach Data was gathered from 395 owners and managers of the NCR region through a self-administered survey questionnaire. The author applied a “variance-based structural equation modeling” to examine the outcomes. Findings The outcomes exhibited that relational capital (RC) significantly influences the FATR, while human capital (HC) and structural capital (SC) insignificantly influences the FATR. Furthermore, HC, RC and SC substantially influence KS. Interestingly, the outcomes also reveal that a FATR and KS substantially influence innovation performance. Research limitations/implications This research provides valuable opportunities to expand the study of intellectual capital and innovation performance in SMEs across different countries, paving the way for future comparative analyses in diverse international contexts. Practical implications The results assist policymakers and practitioners in assessing an organization’s ability to transform data into intellectual capital within the context of “Industrial Revolution 4.0” to strengthen its sustainability and innovation performance. Originality/value The current paper delivers a more affluent and novel understanding of Indian SMEs by examining the interplay between intellectual capital and innovation performance mediating by a FATR and KS behavior. Furthermore, the proposed model has not been previously addressed in the academic literature, which signifies advancement in scientific knowledge.