Intellectual capital, organisational climate, innovation culture, and SME performance

Abstract

Purpose The purpose of this paper is to analyse the relationship between the three components of intellectual capital (IC) (human, structural, and relational), and contextual factors relating to organisational climate (OC) and innovation culture, together with their influence on business performance (BP). Design/methodology/approach This empirical research is based on an online questionnaire, which collected data from a non-probability quota sample consisting of 253 Croatian SMEs. The scales for IC, OC, and innovation culture were constructed to test the relationship between these dimensions and assess the BP of the SMEs. Findings Based on a survey on 253 SMEs in Croatia, the analysis shows that the key dimensions of IC, innovation culture, and OC are vital to a company’s success and are strongly inter-correlated. Higher BP is positively related to higher levels of both IC and innovation culture. Research limitations/implications The main limitation of the research is the subjective aspect of the study. The data used in the study were self-reported where respondents in a survey gave their assessment of firm performance. Although this was necessary because of the absence of other data, it is an issue that must be taken into account when interpreting the findings in the study. Practical implications Understanding the role of IC, OC, and innovation culture in relation to BP, particularly in former transition countries, can have important implications for managers and enterprise owners, as well as policy makers and the academic community. Social implications The findings emphasise the important role of tacit knowledge in the innovation process, of which IC and OC are good examples. Originality/value This empirical study brings evidence from the understudied country of Croatia. Croatia is a post-transitional country and the last accessed member of the EU, on the dividing line between a modest and a moderate innovator. This is the first empirical study conducted in Croatia that explores the association between three concepts that are typically investigated separately (IC, OC, and innovation culture).

Determining Factors of Innovative Performance: Case Studies in Extremaduran Agri-Food Companies

“…Our findings are in line with the studies of [42,43]. In both of them, a multivariate model was proposed to explain the innovative performance in companies.…”

“…Therefore, there is a set of variables that intervene to make all of this possible: (i) a Culture that drives an adequate mindset [28,[42][43][44]; (ii) a Structure that organizes work in a way that enhances human capital [45,46]; (iii) a Strategy that sets a course and establishes the "how to do" [47][48][49][50][51]; (iv) Management that acts proactively, not only creating appropriate internal conditions, but also external ones, in the management of complementary resources [52][53][54][55][56][57][58][59][60][61][62][63][64][65][66]; (v) a Market Orientation that establishes the environment-organization relationship as a source of ideas, recommendations, adjustments, and benchmarks [67][68][69][70][71]; (vi) and, finally, a Climate capable of creating the enthusiasm and commitment necessary to achieve the objectives [42,72,73].…”

“…In both of them, a multivariate model was proposed to explain the innovative performance in companies. Reference [42] outlined that the contextual factors related to the Organizational Climate and the Innovative Culture are vital for the success of the company, adding that the biggest performance is positively related to higher levels of Innovative Culture.…”

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“…The purpose of the study by Dabić et al [2019] is to analyze the relationship between the three components of intellectual capital (human, structural, and relational) and their influence on business performance. Based on a survey of 253 enterprises in Croatia, the researchers find that the key dimensions of intellectual capital are vital to a company's success and are strongly inter-correlated.…”

Structural capital value addition to timber and related industries value chain

“…Nevertheless, the forestry (extraction) sector is still dominated by small and medium enterprises, and even by subsistence small businesses (F-Jardón & Silva, 2017). In the case of SMEs, higher business performance is related to higher levels of intellectual capital and innovation culture (Dabić et al,2019).…”