Abstract

Although the effects of intellectual capital on an organization’s competitive advantage are well documented, the mechanisms that explain those effects remain unclear. We propose that intellectual capital is associated with the way problems are identified, which is concerned with enhancing competitive advantage. The results of our study support a structural model whereby the indirect effects of intellectual capital on a hotel’s competitive advantage are determined through the mechanisms of problem identification. Additional analyses reveal that customer capital is related to structural capital, which predicts the hotel’s human capital. Furthermore, the process-oriented view indicates that innovative ability mediates the effects of ability capital on competitive performance.

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