Abstract
Background: After carrying out an extensive literature review, it is clear that Total Quality Management (TQM) has a significant influence on many areas of companies. The development of quality management practices can lead to the generation of intellectual capital and thus become a key competitive factor. Objectives: The purpose of this research was to explore whether TQM practices have a positive influence on a company’s intellectual capital. Method: We formulate three hypotheses considering the components of intellectual capital: human capital, social capital and organisational capital. This article develops an empirical analysis through the use of structural equation modelling using the partial least squares technique. Results: The results show that TQM has a strong positive causal effect on intellectual capital. Conclusion: This research, therefore, identifies a key determinant of one of the most important strategic variables for companies at present: intellectual capital.
Highlights
Grant (1991) considers that companies’ competitive advantage originates from their intangible resources and capacities
We formulated three hypotheses considering the components of intellectual capital: human capital (HC), social capital (SC) and organisational capital (OC)
The findings of this study indicate that Total Quality Management (TQM) has a strong positive causal effect on intellectual capital (Figure 2)
Summary
After carrying out an extensive literature review, it is clear that Total Quality Management (TQM) has a significant influence on many areas of companies. The development of quality management practices can lead to the generation of intellectual capital and become a key competitive factor
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