The effect of IC components on innovation performance in Serbian companies

Abstract

Purpose In investigating the linkage between intellectual capital (IC) and innovation, it is important not only to explore how IC as a whole is associated with organizations’ innovative performance but also to gain a deep understanding of the role of different IC components (groups of intangibles) in companies’ innovation performance, which is the purpose of this paper in the context of Serbian companies. Design/methodology/approach This research is based on survey data collected from 100 Serbian companies with at least 100 employees during 2014/2015. Six IC components were analyzed (human, structural, internal relational, external relational, renewal and entrepreneurial) in terms of their effect on innovation performance. Analyses were conducted using structural equation modeling and correlation analysis. Findings Findings demonstrate that renewal capital, internal relational capital and structural capital have statistically significant positive effects on overall innovative performance in Serbian companies. Practical implications The outcomes reveal potential and barriers within IC that are crucial to innovation performance in Serbian companies. In this way, this study enables a deeper understanding of intangible drivers of innovation and highlights possibilities to foster intangible innovation potential in Serbian companies. Originality/value As context (economic and cultural) has emerged as a relevant factor in researching IC, this study is original in investigating IC effect on innovation within the Serbian business environment. Additionally, the broad sexpartite taxonomy of IC contributes to a wider understanding of knowledge and its linkages to innovation.

Building supply chain relational capital: The impact of supplier and customer leveraging on innovation performance

“…Innovations across organisations are subject to risk, as well as uncertainty (Cabrilo et al, 2018). Leveraging customer and supplier knowledge can be used as a mechanism for spreading this risk among the partners and reduce the level of outcome uncertainty (Koster & Lambooij, 2018), enabling them to engage in high-risk innovative projects outside the firm's boundary (Pouwels & Koster, 2017).…”

Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

“…The knowledge and experiences can promote firm's innovation because firms generally utilize them to generate new products or services [52]. Most findings [53][54][55][56][57] suggested SC positively affect innovation performance. However, Zhang and Lv [14] found the relation between SC and technological innovation is insignificant in Chinese high-technology manufacturing firms.…”

The Role of Multidimensional Intellectual Capital and Organizational Learning Practices in Innovation Performance

“…However, previous studies have largely ommitted the underlying processes through which IC influences organizational performance (Hsu and Wang, 2012), and even more so specific activities conducted to manage these processes (Teece et al, 1997;Sirmon et al, 2007;Teece, 2007;Ambrosini and Bowman, 2009;Kianto et al, 2014). An astonishingly small number of studies have examined the actual management practices that enable the flow and leveraging of IC to drive performance and value creation (Kianto et al, 2014(Kianto et al, , 2018Hussinki et al, 2017;Cabrilo and Dahms, 2018). This is a consequence of the existence of two separate streams of literature about knowledge, and the conceptual and empirical ambiguity caused by this separation (Kianto et al, 2014).…”

“…This is because an organization's ability to innovate has become crucial for building and maintaining its competitive advantage (Cohen and Levinthal, 1990; Brown and Eisenhardt, 1998; George et al ., 2001; McGrath, 2001; Shipton et al ., 2005) in fast‐changing business conditions. This ability is based on organizational knowledge‐based resources, that is, intellectual capital (Subramaniam and Youndt, 2005; Sumita, 2008; Campanella et al ., 2014; Inkinen et al ., 2014; Inkinen, 2015; Cabrilo et al ., 2018), as well as the managerial capability to effectuate these resources through the process of learning (Nonaka and Takeuchi, 1995; Bontis et al ., 2002; Jones and Macpherson, 2005; Wang and Ellinger, 2008). Intentional activities and systematic mechanisms with which managers control and manage knowledge‐based resources and processes, referred to as knowledge management (KM) practices (Foss and Micahlova, 2009; Andreeva and Kianto, 2012; Kianto et al ., 2014), help to efficiently and effectively leverage resources to drive superior organizational performance (Kianto et al ., 2014; Helfat and Martin, 2015).…”

“…To further specify the role of human‐based IC components as an antecedent of innovation, we propose that human capital should be complemented by two IC components: renewal capital (Kianto, 2008, Kianto et al ., 2010; Inkinen et al ., 2014). Cesaroni et al ., 2015; Buenechea‐Elberdin et al ., 2017, Cabrilo et al ., 2018; and entrepreneurial capital (Erikson, 2002; Firkin, 2003; Cabrilo et al ., 2014; Inkinen et al ., 2014; Cesaroni et al ., 2015; Buenechea‐Elberdin et al ., 2017).…”