Abstract
The importance of intellectual capital (IC) in organizations is well accepted. Several authors have examined the effects of IC on innovation and firm performance. We argue that IC does not directly affect innovation or firm performance; instead, the firms knowledge management (KM) capabilities mediate the effect of IC on innovation and firm performance. We propose a theoretical model of how two KM capabilities (knowledge enhancement and knowledge utilization) mediate the effects of three types of IC (social capital, human capital, and organizational capital) on innovation and firm performance. The model is tested using survey data and secondary data on 533 public-listed companies in Taiwan. The results of structural equation modeling support the theoretical model with two exceptions: the path from human capital to knowledge enhancement capability is not supported, and human capital has an unexpected direct effect on innovation. Other than this unexpected effect of human capital on innovation, the effect of IC on innovation is mediated by KM capabilities. Moreover, innovation fully mediates the effects of KM capabilities on firm performance. Overall, this study provides insights into the mediating roles of knowledge enhancement and knowledge utilization in the relationship between IC and innovation.
| Original language | English |
|---|---|
| Article number | 5729803 |
| Pages (from-to) | 626-642 |
| Number of pages | 17 |
| Journal | IEEE Transactions on Engineering Management |
| Volume | 58 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2011 Nov 1 |
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All Science Journal Classification (ASJC) codes
- Strategy and Management
- Electrical and Electronic Engineering
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From intellectual capital to firm performance : The mediating role of knowledge management capabilities. / Hsu, I. Chieh; Sabherwal, Rajiv.
In: IEEE Transactions on Engineering Management, Vol. 58, No. 4, 5729803, 01.11.2011, p. 626-642.Research output: Contribution to journal › Article
TY - JOUR
T1 - From intellectual capital to firm performance
T2 - The mediating role of knowledge management capabilities
AU - Hsu, I. Chieh
AU - Sabherwal, Rajiv
PY - 2011/11/1
Y1 - 2011/11/1
N2 - The importance of intellectual capital (IC) in organizations is well accepted. Several authors have examined the effects of IC on innovation and firm performance. We argue that IC does not directly affect innovation or firm performance; instead, the firms knowledge management (KM) capabilities mediate the effect of IC on innovation and firm performance. We propose a theoretical model of how two KM capabilities (knowledge enhancement and knowledge utilization) mediate the effects of three types of IC (social capital, human capital, and organizational capital) on innovation and firm performance. The model is tested using survey data and secondary data on 533 public-listed companies in Taiwan. The results of structural equation modeling support the theoretical model with two exceptions: the path from human capital to knowledge enhancement capability is not supported, and human capital has an unexpected direct effect on innovation. Other than this unexpected effect of human capital on innovation, the effect of IC on innovation is mediated by KM capabilities. Moreover, innovation fully mediates the effects of KM capabilities on firm performance. Overall, this study provides insights into the mediating roles of knowledge enhancement and knowledge utilization in the relationship between IC and innovation.
AB - The importance of intellectual capital (IC) in organizations is well accepted. Several authors have examined the effects of IC on innovation and firm performance. We argue that IC does not directly affect innovation or firm performance; instead, the firms knowledge management (KM) capabilities mediate the effect of IC on innovation and firm performance. We propose a theoretical model of how two KM capabilities (knowledge enhancement and knowledge utilization) mediate the effects of three types of IC (social capital, human capital, and organizational capital) on innovation and firm performance. The model is tested using survey data and secondary data on 533 public-listed companies in Taiwan. The results of structural equation modeling support the theoretical model with two exceptions: the path from human capital to knowledge enhancement capability is not supported, and human capital has an unexpected direct effect on innovation. Other than this unexpected effect of human capital on innovation, the effect of IC on innovation is mediated by KM capabilities. Moreover, innovation fully mediates the effects of KM capabilities on firm performance. Overall, this study provides insights into the mediating roles of knowledge enhancement and knowledge utilization in the relationship between IC and innovation.
UR - http://www.scopus.com/inward/record.url?scp=80054867289&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=80054867289&partnerID=8YFLogxK
U2 - 10.1109/TEM.2011.2111455
DO - 10.1109/TEM.2011.2111455
M3 - Article
AN - SCOPUS:80054867289
VL - 58
SP - 626
EP - 642
JO - IEEE Transactions on Engineering Management
JF - IEEE Transactions on Engineering Management
SN - 0018-9391
IS - 4
M1 - 5729803
ER -