Relationship between Intellectual Capital and Knowledge Management: An Empirical Investigation

I. Chieh Hsu, Rajiv Sabherwal

Research output: Contribution to journalArticlepeer-review

125 Citations (Scopus)


Two important streams of the literature have examined intellectual capital (IC) and knowledge management (KM). Surprisingly, they have developed in parallel, without any empirical research on the relationship between them. This article empirically examines how IC and KM affect each other, and also investigates their consequences, viewing three intermediate consequences (dynamic capabilities, efficiency, and innovativeness) to mediate their effects on firm performance. In addition, this article examines the effects of the organization's culture on IC and KM. To address these issues, a comprehensive model is developed and tested using a combination of survey and secondary data of 533 companies in Taiwan. The results support the theoretical model. Major findings include the following: IC affects KM and dynamic capabilities; KM facilitates innovation but not dynamic capabilities or IC; a learning culture facilitates IC and innovation but not KM; firm performance depends on efficiency and innovation, but not directly on dynamic capabilities; and efficiency does not depend on any of the other constructs in the study. The article's implications for research and practice are examined.

Original languageEnglish
Pages (from-to)489-524
Number of pages36
JournalDecision Sciences
Issue number3
Publication statusPublished - 2012 Jun 1

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Information Systems and Management
  • Management of Technology and Innovation

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