Examining intellectual capital and competitive advantage relationship

Abstract

Purpose – The purpose of this paper is to investigate the impact of intellectual capital on competitive advantage in banking sector. Further, it also examines the role of innovation as a mediating variable and organisational learning as a moderating variable in intellectual capital and competitive advantage relationship. Design/methodology/approach – Data are collected from 144 branches of 21 public and seven private banks operating in Northern India (Jammu). Three executives (including one manager and two senior employees) from each branch are contacted purposively. Out of 576 questionnaires distributed, 339 questionnaires are returned with response rate of 62.08 per cent. Findings – The study finds that intellectual capital has direct and positive impact on the competitive advantage. It is also verified that innovation fully mediates the relationship between intellectual capital and competitive advantage. Further, the moderating effect of organisational learning on the relationship between intellectual capital and competitive advantage is also confirmed. Research limitations/implications – The study is limited to the banking sector of Jammu city only. Only three dimensions of intellectual capital are considered in the present study. Originality/value – The study represents the relationship between intellectual capital and competitive advantage in banking sector. The results extend the understanding of the role of organisational learning and innovation in creating intellectual capital and building sustainable advantages for organisations.

Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage

“…Major aims of IC are going around a firm's values and performance in terms of intangibility. It is considered as a less risky resource toward firm' value creation in emerging markets (Chahal & Bakshi, 2015;Khalique, Bontis, Shaari, & Isa, 2015).…”

“…To be more innovative and competitive in dynamic markets, SMEs are required to use IC in an efficient way because, it plays a significant role in SMEs success (Chahal & Bakshi, 2015;Todericiu & Stăniă, 2015). In the early stage of venture creation and operation, firms need several internal capabilities to succeed in markets.…”

The effects of innovation speed and quality on differentiation and low-cost competitive advantage

“…Accomplishing these goals requires the identification of effective pathways by which Chinese firms can successfully diversify forms of innovation, attain competitive advantage and meet the specific demands of customers (Hua et al, 2011;Song, 2015). The theory of organizational learning (OL) has emerged as one of the most appropriate antecedents for improving the innovation capacity and competitive advantage of firms (Chahal and Bakshi, 2015;Song, 2015;Imran et al, 2016;Tamayo-Torres et al, 2016;Lei et al, 2017). According to Tamayo-Torres et al (2016), OL positively affects strategic fit and competitive advantage based on the mediating role of innovation capacity.…”

“…In general, although OL and innovation are recognized as important sources of competitive advantage (Chahal and Bakshi, 2015), empirical research investigating the relationship between OL, aspects of innovation (innovation speed and innovation quality) and competitive advantage in a model is scarce. This knowledge gap limits the understanding of the different ways in which OL may effectively influence competitive advantage.…”

Achieving a Sustained Competitive Advantage in the South African Telecommunications Sector

“…Porter [2] says that to have a sustainable competitive advantage a company needs to create value for its customers, select markets in which it can excel and presents a moving target to its competitors through improving position in a continuous manner. Chahal and Bakshi [3], describe competitive advantage as an outcome which is provided by rare, valuable and unique human resources, customer relationships and systems which provide a company with sustainable competitive position. On the other hand Kay [4] explained competitive advantage as an advantage that a company has in the market place that result in superior financial performance.…”