The effect of intellectual capital on competitive advantage: The mediating role of innovation

Ulya Obeidat,Ra'Ed Masa'Deh,Bader Obeidat,Ala’Aldin Alrowwad,Mohammd Abuhashesh,Muhammad Alshurideh

doi:10.5267/j.msl.2020.11.006

Abstract

The aim of this study is to explore the impact of intellectual capital on the achievement of competitive advantage in organizations. It also aims to explore the mediating impact of innovation on the relationship between intellectual capital and the achievement of competitive advantage. To meet the study’s goals, the researchers reviewed the relevant literature. The researchers also provide definitions for intellectual capital and innovation. They also identified the dimensions of intellectual capital (i.e. structural, human and relational capital). The study identified the types of innovation (incremental and radical innovation) and found that intellectual capital significantly influences on the achievement of competitive advantage. Moreover, the study found that innovation has a mediating influence on the relationship between intellectual capital and the achievement of a competitive advantage.

Highlights

Intellectual capital has been receiving much attention recently
Analyzing the data collected from 335 employees at all managerial levels working in the telecommunication sector reveals that intellectual capital significantly effect on the organizational ability in attaining a competitive advantage at (α ≤ 0.05)
Speaking, drawing on the RBV as suggested by Barney (1991), it has been stated that intellectual capital as a substantial intangible resource within an organization have a direct and indirect impact on enhancing the competitive position of the firm

Summary

Introduction

Intellectual capital has been receiving much attention recently. It consists of relational, human and structural capital. The contribution of this study is that it will investigate the mediating effect of innovation on the relationship between intellectual capital and Competitive advantage. The financial crisis of 2007 and the shortened product life cycle led organizations to provide more attention to the effective utilization of intellectual capital in order to meet the market demands. The latter capital involves human capital (like: skills, experience, competencies, and knowledge), structural capital (e.g. organizational processes, business processes, software, & databases), & relational capital (e.g. customers, suppliers, creditors, investors, and other stakeholders) and adds value to the organization (Rodrigues et al, 2017), it improves organizational performance (Ode and Ayavoo, 2020)

Objectives

Methods

Findings

Conclusion