SURVEY THE EFFECTS OF INTELLECTUAL CAPITAL AND ABSORPTIVE CAPACITY ON INNOVATION CAPABILITY (CASE STUDY OF SAIPA COMPANY IN TEHRAN)

Abstract

The purpose of this research is to describe the effects of intellectual capital (IC) and Absorptive Capacity (ACAP) on Innovation capability (INC). Through a comprehensive literature review constructs were developed. Structural equation modelling (SEM) used to test research hypotheses based on a sample of 160 top and middle managers of SAIPA Company in Tehran. The data collection instrument of this research was standard questionnaire. The reliability of this questionnaire was proved by Cronbach’s [Formula: see text]. The results showed that IC have a significant effect on ACAP and innovation capability. Path coefficients of human capital (HC) and potential ACAP (0.40) showed that HC have a biggest impact on potential ACAP than organisational capital (OC) and social capital. Also path coefficients of OC and actualised ACAP (0.30) showed that OC have a biggest impact on actualised ACAP than HC and social capital. Finally, loading of product innovation (PR INV) was 0.50 and it showed that PR INV is the best variable and measurement for describing INC in SAIPA Company.