Purpose -Organizational performance is increasingly grounded on knowledge-related issues. The two key academic discussions addressing knowledge in organizations are the Intellectual Capital (IC) and Knowledge Management (KM) literatures. However, there are very few earlier studies systematically combining these approaches and demonstrating how IC assets and their management mechanisms might interact in organizational value creation. Therefore, the purpose of this paper is to develop and argue a theoretical model depicting the connections between intellectual capital, knowledge management practices and organizational performance outcomes.Design/methodology/approach -The paper draws on IC and KM literatures to build a theoretical model on how intellectual asset assets and their management practices interact in producing organizational performance.Several conceptual models and related discussion on the interaction of IC and KM practices are put forth.Findings -Organizational value creation is based on both static (IC assets) and dynamic (KM practices) aspects of organizational knowledge, in various combinations. In this paper, potential interaction effects between IC assets and KM practices in terms of moderation and mediation were conceptually analyzed, and four alternative models were proposed on how the knowledge-based issues affect organizational performance.Originality/value -By addressing both the "static" asset aspect of IC as well as the "dynamic" perspective of how leveraging IC assets can be enabled by systematic managerial activities, the paper combines the key issues in IC and KM literatures and demonstrates how intangible resources should be managed to produce value. The authors are not aware of any previous studies explicitly combining and distinguishing IC and KM fields to this extent. The paper therefore contributes to the literature on knowledge-based issues in organizations at large and potentially offers a theoretical grounding for many empirical and theoretical future studies.Practical implications -The paper suggests that organizational value creation is a function of both possessing valuable intangible assets as well as being able to manage these assets systematically. The four models concerning the interaction of IC assets and KM practices in value creation presented in the paper provide managers with tools to reflect about their own thinking model concerning how knowledge produces value in their own firms.

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Purpose – Recent empirical studies have suggested that knowledge-based issues are closely related to companies’ innovation performance. However, the majority of research seems to be focused either on static knowledge assets or knowledge processes such as knowledge creation. The purpose of this paper is to concentrate on the conscious and systematic managerial activities for dealing with knowledge in firms (i.e. knowledge management (KM) practices), which aim at innovation performance improvements through proactive management of knowledge assets. The study explores the impact that KM practices have on innovation performance. Design/methodology/approach – The authors provide empirical evidence on how various KM practices influence innovation performance. The results are based on survey data collected in Finland during fall 2013. The authors use partial least squares to test the hypothesized relationships between KM practices and innovation performance. Findings – The authors find that firms are capable of supporting innovation performance through strategic management of knowledge and competence, knowledge-based compensation practices, and information technology practices. The authors also point out that some of the studied KM practices are not directly associated with innovation performance. Originality/value – This study adds to the knowledge-based view of the firm by demonstrating the significance of the management of knowledge for innovation performance. Furthermore, the division of KM practices into ten types and the provision of the validated scales for measuring these add to the general understanding of KM as a field of theory and practice. This study is valuable also from managerial perspective, as it sheds light on the potentially most effective KM practices to improve companies’ innovation performance.

Henri Inkinen Intellectual capital, knowledge management practices and firm performance Lappeenranta 2016 100 pages

This paper explores the idea that well‐aligned HR practices may produce varied and even negative effects on innovation performance. To do so, we examine the interaction effect between rewards for and appraisal of knowledge behaviours on radical and incremental innovation outcomes. Drawing on the insights from the strategic HRM literature on the internal fit between HR practices, as well as the developments of the knowledge governance approach, we argue that rewards and appraisal applied together produce a setting that is conducive for deepening existing knowledge bases, but hindering for more distant and diverse knowledge search. Empirical test of these hypotheses using the data from 259 Finnish companies lends partial support for this argument. Intensive usage of appraisal of knowledge behaviours reduces the positive impact that rewards for such behaviours have on radical innovation. At the same time, rewards and appraisal do not intensify each other's effect on incremental innovation.