Intellectual capital and organizational effectiveness: PLS-SEM approach

Abstract

An intellectual capital or intangible assets, as valuable economic resources, is increasingly becoming key driver of organizations' economic performance and competitiveness. The purpose of this research is to examine the three dimensions of intellectual capital i.e. human capital, structural capital, and relational capital, and their interdependence and, to test their direct and total effects on organizational effectiveness according to competing values approach. The proposed research model is tested in product-oriented and service-oriented organizations in the Republic of Srpska, Bosnia and Herzegovina, to establish similarities and differences within these two types of organizations. The research was performed using psychometrically validated questionnaires to measure intellectual capital and organizational effectiveness. To test hypothesized correlations partial least squares structural equation modelling (PLS-SEM) is employed. The main findings from this research are: interdependence of intellectual capital dimensions and their direct effects on certain organizational effectiveness models are significant in both types of organizations but in service-oriented organizations there is insignificant effect of human capital on structural capital, and, finally, total effects analysis shows that positive interdependence of intellectual capital dimensions increases the total positive effect of intellectual capital on organizational effectiveness. The final defined structural models show a robust explanation of the organizational effectiveness variance in observed context.

Impact of firm's intellectual capital on firm performance: a study of Indian firms and the moderating effects of age and gender

“…This study has made a holistic attempt to ascertain the salient dimensions of IC. These dimensions are HC, SC and CC, which have been supported in other studies (Zlatkovic, 2018) that identified and examined the three dimensions of IC through a PLS-SEM approach. This study has investigated these three dimensions that could impact FP to prompt CA.…”

“…Our study, on the other hand, has investigated the impacts of HC, SC and CC on CA, mediated through FP. We have followed Zlatkovic (2018) who investigated the effects of the dimensions of IC on organizational effectiveness (FP). Thus, with support from the studies of Yaseen et al…”

“…The different interpretations of IC lead to the conclusion that IC includes abilities and resources that are valuable, rare, inimitable and non-substitutable. If a firm can achieve this, it can ensure better performance along with sustainable CA (Zlatkovic, 2018;Bhattacharjee et al, 2020;Chatterjee, 2020;Ghosh et al, 2020). Different scholars have classified IC with different dimensions such as SC and HC (Edvinsson and Malone, 1997;Christos, 2019;Chaudhuri et al, 2021;Majumdar et al, 2020;Bhattacharjee et al, 2020;Chatterjee et al, 2021b); SC, employee capital and consumer capital (Zerenler et al, 2008;Barrena-Mart ınez et al, 2019;Chatterjee et al, 2021a); and social capital, HC and organization capital (Reed et al, 2006;McDowell et al, 2018;Chatterjee et al, 2020).…”

“…An employee's psychological characteristics partly depend on age (Csibi et al, 2019) and gender (Van Deursen et al, 2015;Yang et al, 2018). Studies have suggested that a firm's IC influences its performance and CA (Zlatkovic, 2018). However, all the studies on this issue covered western business aspects (Yaseen et al, 2016), and there are few studies available that covered these issues relating to developing economies (Chowdhury et al, 2019;Oppong et al, 2019).…”

Pengaruh Ketangkasan Rantai Pasok Terhadap Kinerja Bisnis Kedai Kopi Di Kota Malang

“…Nilai R 2 sebesar 0,19 dapat dikategorikan lemah, 0,33 dapat dikategorikan moderat, 0.67 dapat dikategorikan substansial, dan >0,7 dapat dikategorikan kuat. Sedangkan nilai koefisien jalur sebesar 0,02 dapat dikategorikan memiliki pengaruh lemah, 0,15 dapat dikategorikan memiliki pengaruh yang cukup, dan 0,35 dapat dikategorikan memiliki pengaruh yang kuat (Zlatković, 2018). Pada Gambar 2 dapat dilihat bahwa ketangkasan rantai pasok memiliki hubungan signifikan dan pengaruh yang kuat terhadap kinerja bisnis karena memiliki koefisien jalur yang lebih besar dari 0,35 yaitu dengan nilai koefisien jalur sebesar 0,63 pada tingkat signifikansi kurang dari 0,01.…”