The Effect of Intellectual Capital on Market Orientation for Insurance Companies in Lorestan, Iran: An Empirical Study

Hojjat Vahdati,Seyed Hadi Mousavi Nejad,Neda Shahsiah

doi:10.32890/ijms.23.1.2016.10465

Hojjat Vahdati, Seyed Hadi Mousavi Nejad + Show 1 more

Open Access

https://doi.org/10.32890/ijms.23.1.2016.10465

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Abstract

n the era of ultra-competitiveness, organizations are faced with new challenges which require special attention to develop and strengthen the market orientation skills, and this is done through the basics of organizational knowledge and intellectual capital. Therefore, this study aims to investigate the effect of intellectual capital and knowledge sharing on market orientation. This is a descriptive-survey which was administered in a field method. The statistical population in this study consisted of all employees working for the Lorestan insurance companies [N=121]. Due to the limited number of the population, data were collected by the census method with the help of questionnaires. Four hypotheses were presented and tested by the partial least squares method using the Smart PLS software. The results indicate that intellectual capital has a positive and significant effect on market orientation through knowledge sharing. Moreover, the positive effects of intellectual capital on market orientation, intellectual capital on knowledge sharing, and knowledge sharing on market orientation were approved. Keywords: Intellectual capital, Knowledge sharing, Market orientation, Insurance companies.

Highlights

Introduction and Problem StatementToday, due to the competition boost between organizations, and the increasing importance of the success of the organizations in this field, the organizations have been led to the use of one of the most important resources, knowledge and intellectual capital
In today’s knowledge-driven world, organizational capabilities have been based on knowledge and market orientation, and managers need to understand the capabilities that needed to sustain competitive advantages
This study evaluated the effect of intellectual capital on market orientation, according to the role of knowledge sharing as a mediator variable, and it tested four hypotheses

Summary

Introduction

Due to the competition boost between organizations, and the increasing importance of the success of the organizations in this field, the organizations have been led to the use of one of the most important resources, knowledge and intellectual capital. Knowledge as the most important capital has replaced physical capital, in particular, in the competitive and technological environment. Experience has shown that organizations that make better use of knowledge and their intellectual resources are more oriented to the market mechanism. Inkpen (1998) and Zack (1999) believe that if a company is entitled to intellectual capital and better knowledge assets in the business environment it will have a competitive advantage. The importance of intellectual capital according to today’s competitive market is constantly on the rise, but most organizations are faced with many problems. The nature and its features remain hidden in these companies (Maditinos et al, 2011)

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