Purpose
– The purpose of this paper is to examine the effects of intellectual capital (human, social and organizational capital) on dynamic capabilities (learning, integration, reconfiguration and alliance management).
Design/methodology/approach
– A methodical review of relevant literature and the theory of resource-based view, knowledge-based view and dynamic capability view serves as a starting-point to develop a framework for linking intellectual capital with dynamic capabilities. A total of 241 managers from the public sector banks in India was selected as sample of study and structural equation modelling was applied to provide strong evidence for the hypothesis.
Findings
– The study established a strong effect of intellectual capital dimensions on dynamic capabilities in the surveyed banking firms. Human and social capital had the most profound effect on learning, integration, reconfiguration and alliance management capabilities. As regards to organizational capital, an unexpected negative effect on reconfiguration and alliance management capabilities was observed.
Originality/value
– The study clarifies the role of knowledge for various capability developments. One of the significant contributions is with reference to the linkages of structural aspects of knowledge and dynamic capabilities, a link that can barely be seen in the existing literature. To the author’s knowledge the present study makes a preliminary effort to broaden the concepts appeal in new geographical boundaries and empirical context, thus making an original contribution to the Indian banking industry and strategic management literature, significantly.
This study aims to examine the effects of intellectual capital on dynamic capabilities and the mediating role of knowledge management processes. Based on the review of literature, a research model was proposed to examine this quantitative relationship. The model was empirically tested using 679 responses from the banking industry in India and applying Structural equation modeling analysis. It was found that intellectual capital with its three dimensions has significant effect on dynamic capabilities. Concerning to mediating role of knowledge management process, two patterns of association was found: Knowledge management process partially mediates the effect of organizational capital on dynamic capabilities and fully mediates the effect of human capital and social capital on dynamic capabilities. Based on these empirical insights, inferences and future avenues are further discussed in detail.
This article aims to examine the performance implications of dynamic capabilities in the banking firms and explain the degree of influence that learning, integration, reconfiguration and alliance management dynamic capabilities are likely to have on a bank’s financial and non-financial performance. Using 439 samples of managers in Indian banking firms, structural equation modelling (SEM) was directed and found that dynamic capability is a vital driver of banks’ performance. Learning, integration and alliance management dynamic capabilities have significant relationship with banks’ financial and non-financial performance. The insignificance of reconfiguration capability for financial performance is also revealed. Practically, findings will serve banking sector, useful course-of-action to overcome the present competitive-pressures as well counter the future challenges through depth knowledge on specific dynamic capability investment and respective performance-improvement. Stranded on these findings, practical implications, limitations and future research directions are also conversed.
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