Relationship between human capital and entrepreneurship orientation from the intellectual capital perspective of innovative literacy

Abstract

PurposeThis study measures the relationship between human capital and innovative literacy from the perspective of intellectual capital. For this purpose, the relationship between human capital and innovative literacy was first investigated to measure intellectual capital. Subsequently, the moderating effect of entrepreneurial orientation on the influence of innovative literacy on human capital was also analysed.Design/methodology/approachThis study analyses the relationship between innovative literacy, human capital and entrepreneurial orientation through structural equation modelling – the study sample comprised 457 participants in Türkiye.FindingsThe results suggest a positive relationship between human capital, a sub-component of intellectual capital and innovative literacy. Innovative literacy can influence intellectual capital and increase value. Our finding further confirms that entrepreneurial orientation has no moderating effect on the same relationship.Research limitations/implicationsDespite the observed correlation between IL and HC growth, this study had some limitations. First, the generalisability of the findings is limited because the sample was selected from individuals with a high level of education in Türkiye. Despite these limitations, this study has important theoretical and practical implications for developing countries. Türkiye is a developing country, and the selected sample is the most critical database in the country for an Innovative Literacy Scale. However, future research could focus on whether there is a potential source of bias and collect and compare data from heterogeneous workers. In addition, research on existing research frameworks in other countries may consider varying levels of education and business sectors. This research aims to be a pioneering initiative towards the advancement of IL. The question of whether IL should be considered equivalent to or a subset of HC, which has been previously proposed as a dimension of IC, can be clarified through a thorough examination of what IL means.Practical implicationsIn a theoretical framework, transforming human capital into value through innovations derived from innovative literacy activities will significantly increase the company's intellectual capital. Organizations in which innovative literacy play an important role achieve organizational goals, strengthen commitment and contribute to sustainability through the emergence of new potential innovative individuals. This research also contributes significantly to the existing literature. Initially regarding theoretical implications, this study examines the concept of innovative literacy in the existing literature on intellectual capital, human capital and entrepreneurial orientation. Additionally, this study offers a new perspective on intellectual capital.Social implicationsThe findings of this research also provide managerial outcomes. Initially, the assessment of concepts, research and development capabilities and efficient knowledge management are indicators of innovative literacy proficiency at the individual level. Human capital is a subcomponent of intellectual capital and refers to knowledge, skills and experience. Innovative and literate team members should be developed in order to strengthen the intellectual capital structure of an organization.Originality/valueThis study contributes to understanding innovative literacy from an intellectual capital perspective using the Innovative Literacy Scale to reveal important dimensions that influence innovative literacy. Using a measurement tool with new sub-dimensions not included in the extant literature on intellectual capital is unique. This study suggests that scholars should include innovative literacy – a distinct subset of intellectual capital – in their body of knowledge on human capital. Our findings have the potential to help meet the needs of human resource departments, researchers, educational institutions, public institutions and enterprises.