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Competing in the New Economy: The Effect of Intellectual Capital on Corporate Entrepreneurship in High-technology New Ventures

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Abstract

Intellectual capital (IC) offers a potential source of sustainable competitive advantage and is believed to be the font from which technological development and economic growth may spring. This study proposes a three-dimensional framework for describing and measuring a firm's IC that includes human capital, intellectual property, and reputational capital. Drawing upon the resource-based view of the firm, it is argued that in high-technology new ventures (HTNVs) IC assets offer a unique source of advantage that facilitates entrepreneurship by reducing the risk and increasing the returns from investments in innovation and venturing. This paper reports the results of an empirical study of 237 HTNVs in the US that issued an initial public offering between 1994 and 1998. It is found that these firms' top management team human capital diversity and organizational reputation are of greatest significance for their entrepreneurial performance. Interestingly, these factors far outweigh the insignificant effect observed for intellectual property on subsequent innovation and venturing activities. The implications for theory and practice are discussed.

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... The literature on human capital in organisations focuses on the way employees and managers accumulate knowledge and skills and how such stock of knowledge and skills enable organisations to improve performance. Human capital has been found to be positively related to a number of key organisational outcomes, including innovation (Hayton, 2005;Jegede et al., 2016;G. Liu, Pang and Kong, 2017), export performance (G. ...
... While studies that examine the relation between human capital and firm innovativeness in developed economies generally find positive association between the two (Bornay- Barrachina et al., 2012;Hayton, 2005), studies that examine this relationship in African (developing country) contexts reveal mixed outcomes. Using data from 179 micro, small and medium-sized enterprises (MSMEs) in Laos, Vixathep and Phonvisay (2019) examined the relationship among human capital, productivity and innovation and show that owner-manager education increased the probability of innovation. ...
... As regards to the direct relation between human capital and firm performance, overall, empirical studies provide support for the superiority of human capital in influencing productivity in different kinds of organisations. Onkelinx et al. (2016) used data from 1922SMEs in Belgium between 1998to 2005 to study the relationship between investment in employees' human capital, productivity and internationalisation. They show that firm-level investment in employees' human capital leads to higher productivity. ...
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Using a sample of 309 Small and Medium-sized Enterprises (SMEs) from Tanzania and applying partial least square structural equation modeling, the study analyses the different effects of managers’ general and specific human capital on SME innovation and productivity. The results demonstrate that top managers with higher education qualification place a greater comparative importance on non-technological innovation in comparison with their less educated peers. They further show that managers with more years of experience in the sector place higher importance on technological innovation than their less experienced counterparts. In addition, the results show that SMEs with managers who have higher education qualification achieve higher productivity than their less educated peers, with marketing innovation partially complementarily mediating this relationship. The effect of top managers’ experience in the sector on SME productivity is shown to be insignificant. This paper uncovers the mediating role of marketing innovation on the relationship between top managers’ human capital and SME productivity in Tanzania. Previous research did not consider the role of innovation as a means to translate top manager’s human capital into firm productivity. These results help to provide some practical suggestions for managers, entrepreneurs and policy makers. This is a cross-sectional study which might not have captured all the effects of top managers’ human capital fully.
... More than ever before, intangible assets are regarded as the most valuable sources of innovation and entrepreneurship and maintaining competitive ability (Mohammad et al. 2013). Underlying entrepreneurial orientation is a tendency to pursue the acquisition and implementation of novel knowledge and the integration of this knowledge with existing capabilities and resources (Hayton 2005;Kim et al. 2012;Kim et al. 2015). Studies of intangible assets have widely claimed that an organization's intellectual capital is a vital dimension in promoting entrepreneurship (Raymond et al. 2015). ...
... Entrepreneurial orientation can be defined as the methods, practices, and decision-making styles managers use to act entrepreneurially and can be thought of as a type of strategic orientation insofar as it captures how a firm intends to compete (Wu et al. 2008). The literature has affirmed the central role of intellectual capital in the tendency of organizations to be entrepreneurial and innovative (Bontis 1998;Hayton 2005;Kiang et al. 2016). Mohammad et al. (2013) concluded that the effective use of intellectual capital enriches knowledge resources and entrepreneurial activities. ...
... Mohammad et al. (2013) concluded that the effective use of intellectual capital enriches knowledge resources and entrepreneurial activities. Hayton (2005) emphasized the impact of intellectual capital on entrepreneurial orientation in risky business ventures. Furthermore, Eren and Kocapinar (2009) found that entrepreneurial orientation is a mediating variable between intellectual capital and performance. ...
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This study empirically examines the impact of intellectual capital on the frontiers of e-business entrepreneurial orientation and how intellectual capital and e-business entrepreneurial orientation contribute to competitive agility. A questionnaire was used for data collection from telecommunication companies and obtained from a sample of 212 participants. Data analysis was conducted using a structural equation modeling approach using smart PLS. The results show the positive impact of human capital, structural capital, and relational capital on e-business entrepreneurial orientation. The findings also indicate a direct positive impact of intellectual capital and e-business entrepreneurial orientation on competitive agility. An understanding of the impact of intellectual capital, e-business entrepreneurial orientation dimensions, and their relationship with competitive agility will provide organizations with a better background and knowledge on how to foster and manage these capabilities.
... Human capital characteristics of top management play a critical role in the entrepreneurial orientation of corporations pursuing new ventures with a high-technology focus because of the position of business managers as key decision makers and contributors to the organization (Hayton, 2005). It is well documented that top management support is a key factor for the successful adoption of IT in organizations (Chen et al., 2018;Mohtaramzadeh et al., 2018). ...
... Organizational social networks have long been described as effective mechanisms for the transfer and exchange of explicit and tacit knowledge (Hayton, 2005). Organizations with high levels of social networking have more knowledge-management abilities than those with fewer social networks (Hayton, 2005). ...
... Organizational social networks have long been described as effective mechanisms for the transfer and exchange of explicit and tacit knowledge (Hayton, 2005). Organizations with high levels of social networking have more knowledge-management abilities than those with fewer social networks (Hayton, 2005). Through effective organizational learning from other firms and asset accumulation from complementary sources, a company can build its knowledge capacity and quickly draw upon its prior learning in sensing market imperfections, discovering arbitrage opportunities, and shaping strategic innovative moves (Bahrami et al., 2012). ...
Article
Despite a growing interest in social media adoption by corporations, there is minimal knowledge about the drivers of social customer relationship management (SCRM). This study examines the determinants of SCRM entrepreneurship from an institutional perspective and specifically from the banking sector. Data on 19 banks were obtained from 183 responses to a questionnaire. These data were analyzed using Partial Least Square (PLS) path modeling. The findings show that organizational and technological contexts have a significant positive impact on SCRM entrepreneurship. The results also reveal a significant impact of institutional normative and coercive pressures on SCRM entrepreneurship. The findings of this study provide researchers and practitioners with a deeper understanding of how external institutional pressures and internal organizational and technological contexts can interact to create SCRM entrepreneurship. Furthermore, this study contributes to knowledge about the motivations and methods of SCRM adoption and evaluation.
... Organizational agility in woodcraft SMEs occurred because they produced highly artistic products that were high quality, hard to imitate, and of high value, and they had export shares in various European and American countries [23]. In addition, the present study adopted the study of [7,45,46] in measuring organizational agility. ...
... Since previous studies had evaluated the construct variables used for this study, the construct measurement was adopted from the existing literature. Social capital was measured by 5 indicators adopted from [7,45,76]. Collaborative knowledge creation was measured by 8 indicators adopted from [7,38,59,81]. Firm innovation had 10 indicators adopted from studies by [54,55,82]. ...
... In woodcraft SMEs, the social capital construct was adopted from previous research [7,45,46]. The social capital involved was (1) the ability to increase opportunities, ideas, and concepts, called exploration, aimed to increase contribution in the international market because it has unique and high-value products; (2) close partners and collaborations included suppliers, producers, governments, and competitors. ...
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Although social capital and collaborative knowledge creation were considered essential drivers in maintaining competitive advantage, empirical evidence on the impact of collaborative knowledge creation on organizational agility remained limited. Therefore, this study examined the relationship between social capital and collaborative knowledge creation in building innovation and agility and testing strategic flexibility as a moderating variable. It employed a quantitative design by distributing questionnaires to 414 managers and assistant managers of SMEs analyzed by SmartPLS-SEM. The results showed that social capital significantly affected collaborative knowledge creation, innovation, and organizational agility. Meanwhile, collaborative knowledge creation has no significant impact on organizational agility. Furthermore, strategic flexibility was not a moderating variable of the relationship between innovation and organizational agility. Based on these findings, this study produced recommendations for managers to strengthen organizational agility.
... Whereas large-scale and risky takeover-behavior is sometimes attributed to overconfident male leadership (G. Chen et al., 2016;Huang & Kisgen, 2013), the total amount of interactions with external organizations via acquisitions, joint ventures, and strategic alliances at the heart of this study requires a collaborative attitude towards exploration with even small partners (Hayton, 2005). The presence of a female COO can also result in an inclusive leadership style and promote the sharing of task-relevant information (Dezsö & Ross, 2012), facilitating the complex cross-functional processes needed to realize venturing activities. ...
... Each firm's subsidiaries are separately checked for patent output with Orbit and Google Patents to ensure that the whole organization's output is captured. Data for exploration via venturing activity is collected based on PR Newswire press releases in the Nexis database (Graffin et al., 2016;Hayton, 2005;Hendricks et al., 2015). Graffin et al. (2016) argue that PR Newswire has the largest firm coverage compared to other sources. ...
... A custom algorithm written in Python 3.6 was used to determine whether an announcement referred to a venturing activity or not (Graffin et al., 2016). In line with Hayton (2005), venturing activity was defined as the count of interactions with external organizations via the acquisition of other firms, joint ventures, or strategic alliances. These activities reflect a firm's resource commitment to foster growth through external partnerships and are frequently used in exploration research (Titus et al., 2017;Van de Vrande et al., 2009). ...
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This article investigates the role of chief operating officers’ (COOs’) characteristics and their relation to the exploration modes of patenting and venturing. It relies on the upper echelons view to explain how COOs’ demographic and professional background features – represented by their career horizon, gender, and functional experience – may influence the path those COOs choose to conduct exploration. Based on a ten-year cross-industry panel of U.S. firms, the results provide support for the notion that distinct COO profiles relate to organizational exploration efforts. While COOs with long career horizons are associated negatively with patenting activity, they positively relate to corporate venturing activity. Female COOs are positively related to venturing, though no relation can be observed for patenting. COOs with backgrounds in development are positively associated with patenting activity and insignificantly related to venturing. This research adds to the debate on how functional top executives matter for firm exploration.
... The factors driving the company's growth are not only sourced from physical investment, such as buildings, still, and equipment, but are sourced from knowledge as a key resource in the economy and an important production factor. Intellectual capital is an important resource in gaining a sustainable competitive advantage Hayton (2005), create value and improve company performance and growth. The important role of intellectual capital in companies is an important topic of research, such as Abdolmohammadi (2005), Brüggen, Vergauwen, and Dao (2009), Rashid, Ibrahim, Othman, and See (2012), Ramanauskaitė and Laginauskaitė (2015), but there is still no consistency in the results. ...
... In the information age, the company's growth base shifts from tangible to intangible resources, namely intellectual capital (Guthrie et al., 2006). Intellectual capital is an important resource in gaining a sustainable competitive advantage (Hayton, 2005), create value and improve company performance and growth Hatane et al., (2021). This shows that there has been a shift to a knowledge-based economy that has triggered the important role of intellectual capital in the creation of corporate value (Holland, 2003). ...
Article
Disclosure of intellectual capital in Indonesia is still voluntary, it has been implicitly regulated in PSAK No. 19. This study will examine the determinants of intellectual capital disclosure and its consequences on firm value. The determining factors that are thought to influence the disclosure of intellectual capital in Indonesia are listing age, firm size and industry of type. The impact of intellectual capital disclosure is the value of the company. The research population is all companies that are included in LQ45 on the Indonesia Stock Exchange in the period 2015 to 2020. The number of research samples is 132 observations. The analysis used is multiple linear regression. The results of this study indicate that Listing age affects intellectual capital disclosure, Firm size affects intellectual capital disclosure, Industry of type does not affect intellectual capital disclosure and Intellectual capital disclosure affects firm value. The implication of these findings is that companies are starting to realize the importance of the role of intellectual capital in creating a company's sustainable competitive advantage. Intellectual capital is an important resource in the information and knowledge era for company growth that companies need to disclose to investors and potential investors.
... Fierce competition in today's business world has compelled most organizations to continuously adapt and improve themselves to keep pace with their competitors and to ensure their sustainable survival in the market. Intellectual capital (IC) is among the critical factors that may significantly and sustainably benefit organizations [1]. Over the last two decades, several studies and real-life implications have demonstrated that good IC management (ICM) can significantly benefit organizations in many aspects. ...
... Over the last two decades, several studies and real-life implications have demonstrated that good IC management (ICM) can significantly benefit organizations in many aspects. Several IC studies have been proposed, and these can typically be categorized into four types: (1) categorization and framework of IC, (2) IC measurement and impact of IC on business performance, (3) practical use and management of IC, and (4) development of ICM method. Among these various groups of studies, the measurement of IC performance and its impact on business performance was found to have received the most attention [2]. ...
Article
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This study develops a new integrated approach for improving deficiencies relating to executives' intuitive or illogical decisions, mainly found in past intellectual capital management (ICM) methods. To simultaneously rectify several flaws, the process model of intellectual capital (IC), a traditional ICM method, is integrated using decision science methods-the analytic network process (ANP) and quality function deployment (QFD). The process model of IC is adopted as a core procedure of the proposed ICM approach. ANP is integrated to improve the ability to consider relationships among the IC critical factors and their impacts, while QFD is included to facilitate the systematic consideration and identification of correlations, linkages, and impacts between all IC-related elements from the business concept to strategic plans. The proposed method was applied to two case studies in one real enterprise in Thailand. The results of the implementation reveal the priorities of all IC-related aspects, and the first priority of key success factors (KSFs), key performance indicators (KPIs), and action plans (APs) are all associated with the organization in the structural capital dimension. The results demonstrate that the method may offer advantages with respect to the conceptual expectations and may prioritize critical IC factors and identify their weights. Furthermore, the improved method could indicate the correlations and impacts between related elements, such as critical factors and associated indicators. This study proposes a new comprehensive and systematic management framework by integrating different concepts-decision science methods and the ICM method. To the best of the authors' knowledge, this improved approach has not been explored or proposed in earlier studies.
... By embracing the idea that IC plays a relevant role in management studies, several scholars have investigated its role in reference to several topics such as business performance (Ahmed et al., 2019), to companies' reputation (Ulubeyli and Yorulmaz, 2019), to business incubators (Calza et al., 2014), to higher education (Kashyap and Agrawal, 2019) and to entrepreneurship (Peña, 2002;Hayton, 2005;Hormiga et al., 2011;Link and Ruhm, 2011;Musteen and Ahsan, 2013) and achieved results always confirm the relevance of IC in management studies. ...
... At this stage, some reflections are needed. Scholars focusing on IC consider human, relational and structural capital as variables able to affect business performance (Ahmed et al., 2019), companies' reputation (Ulubeyli and Yorulmaz, 2019) and entrepreneurship (Peña, 2002;Hayton, 2005;Hormiga et al., 2011;Link and Ruhm, 2011;Musteen and Ahsan, 2013;Matricano, 2016). Scholars focusing on OI (Kratzer et al., 2017;Candelo et al., 2018;Gruenhagen and Parker, 2020) pay attention on the inbound and outbound knowledge flows that can support and foster companies' innovation processes, without clarifying the variables playing a certain role over these processes. ...
Article
Purpose This paper investigates the link between Intellectual Capital (IC) and Open Innovation (OI). Scholars worldwide consider the topics as standing alone and so they give scarce attention to the possible link between them. Managerial experiences (and few theoretical contributions), instead, hypothesize a significant role that IC can play over OI processes in order make them successful. Design/methodology/approach The methodology of a single case study is used to investigate the link between IC and OI. In particular, an OI process managed by a global company, LEGO, and named Mindstorms is rebuilt and analysed herein. Findings Intermediate results achieved by LEGO through its OI process were unsuccessful since the company had not developed its own IC (made up of relational, human and structural capital). The subsequent development of IC, instead, has driven to successful results. This suggests that if companies do not develop their IC before launching OI processes, then these processes might be not successful. Research limitations/implications One limitation is the use of a single case study. Despite this, the present article is a warning for all the companies: before launching OI processes they need to develop their IC. Originality/value To the best knowledge of the authors, this is one of the first works that deepens the investigation of the link between IC and OI. Very often, scholars investigating IC shyly refer to OI, without mentioning it, while the scholars investigating OI allude to IC, without citing it. In this study, IC and OI are investigated together.
... Human capital presents a crucial and influential driver that explains technological innovation nowadays (Ang et al., 2011;Danquah & Amankwah-Amoah, 2017;Khan et al., 2020;Hu, 2021). Human capital is a systemic combination of knowledge application, knowhow, human competencies and experience, education, and expertise (Hayton, 2005). The quantity and quality of human capital, within a firm or a country, strongly determine the ability to generate and implement new ideas (Lucas Jr, 2009). ...
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Saudi Arabia’s vision for 2030 strives to increase the contribution of SMEs in the national economy from 20% to 35% and reduce the unemployment rate from 11.6% to 7%. To achieve this, the Kingdom rely on the vital role of banks to support entrepreneurial projects. This opportunity raised the competition among the different banks operating in Saudi Arabia to attract more customers and gain significant share market through being more pro-active and innovative and ready to risk-taking regarding e-services. This study aims to measure the impact of E-banking entrepreneurship orientation drivers on banks sustainable performance. A questionnaire has been developed to test the different hypotheses, and 607 responses have been collected and analysed. The results show high awareness regarding the drivers supporting e-banking entrepreneurial orientation, especially the human capital. On the other hand, the results show significant positive impact of e-banking entrepreneurial orientation on the sustainable performance dimensions, namely, environmental, ethical, and social performance.
... It also follows what was stated as supporting this hypothesis: entrepreneurs need collaboration with different business actors to gain access to resources and markets. A significant relational capital should enhance proactiveness (a component of EO) because social capital can be mobilized to ensure the success of an organization and promote entrepreneurship (Hayton, 2005;Liu et al., 2016). Considering risk-taking (another component of EO), social capital alters the risk tolerance of socially connected individuals because it offers a way Innovation and Entrepreneurship (2022) 11:42 to pool individual risks and reinforces an individual's sense of power, leading to riskier preferences (Ferris et al., 2017). ...
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Questions "Where does innovation initiate in a company?" and "How can a small and medium-sized enterprise (SME) leverage its different resources to enhance its innovation capabilities to outperform its competitors?" remain unanswered to date. Accordingly, this study examined the relationship between the firm's relational capital and fundamental strategic orientations that a firm can adopt and how these different orientations affect innovation and organizational performance. The target sample included 360 Mexican SMEs who completed a pen-and-pencil questionnaire conducted at the four main cities of this country. Structural equation modeling was performed, and results revealed a strong positive effect of relational capital over all four strategic orientations considered in this study. However, mixed findings of strategic orientations and innovation were obtained. Although market and entrepreneurial orientation positively influenced innovation, a negative relationship was found between learning orientation and innovation and a nonsignificant relationship between technology orientation and innovation. As expected, innovation positively influenced the performance of SMEs. This study offers essential academic contributions and interesting managerial insights to improve performance using relational capital through innovation and strategic orientations. Therefore, we propose relational capital as an underexploited resource and a source of innovation for SMEs.
... It is also termed as the total of 'hidden' assets of the personnel of the organisation (Roos and Roos, 1997). IC, as established by empirical research, enhances organisation's innovativeness, competitive advantage, and value creation (Tan et al., 2007) and when strategically manipulated, IC can change perceived risks and rewards of managerial actions which pave the way for market penetration, product innovation, and first-mover advantage (Hayton, 2005). The most agreed upon sub-dimensions of IC includes human capital, RC, and structural capital (Martín-de-Castro et al., 2011). ...
Article
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The study examines the impact of internationalisation challenges on the internationalisation of small and medium enterprises (SMEs). Second, the study investigates the role of intellectual capital in the association between internationalisation challenges and the firms internalisation. By collecting data from 211 manufacturing sector SMEs of Pakistan, PLS-SEM was employed to analyze the hypothesised relationship. Second, one-way ANOVA was employed to check whether the internationalisation differs by the level of IC or not. The results depicted a significant negative influence of all four groups of internationalisation challenges on the firms international performance. Results also showed a significant and direct impact of human capital and structural capital on a firms international performance. Results showed that IC significantly and negatively moderated the association between internationalisation challenges and performance. Likewise, results also showed that firms with stronger IC were having better international performance as compare to the firms with weaker IC. Keywords: small and medium enterprise; SME; internationalisation; intellectual capital; PLS-SEM. DOI: 10.1504/IJLIC.2021.10035394
... The stronger effect of higher social competence on the relationship between organisational RC and business growth could be because of the impact on transaction costs. Higher social competency skills will be likely to therefore generate admiration, esteem and confidence for an entrepreneur, thus further reducing transaction costs associated with an exchange (Hayton, 2005) and the need to monitor relationships. The positive moderation effect infers that employees perceive the entrepreneur as a good employer to work for in terms of the company's infrastructure, working environment, benefits and employee relations. ...
Article
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Purpose This paper aims to investigate the moderating dynamics of social competence in the relationship between intangible resources and the performance of women businesses from an emerging market context. Developed economy literature provides ample evidence of a positive relationship between intangible resources and the performance of women business ventures. Little is known of the complexity of this orthodoxy in developing markets such as Ghana. In particular, this paper investigates the moderating role of social competence in the relationship between intangible resources available to women entrepreneurs and performance. Design methodology approach An exploratory sequential mixed method research design was used. First phase involved qualitative data collected through interviews, and the second phase was quantitative data collected from 264 participants. Content analysis and multiple regression analysis were used. Findings Social competence is important to the success of women businesses as it influences the outcome of entrepreneurial interactions and communications. Also, it positively moderated the relationship between organisational reputational capital (RC) and women business growth. On the flip side, it negatively moderated the relationship between human capital, social capital, individual RC and women business growth. Practical implications To sustainably grow their businesses, women entrepreneurs must ascertain the right level of social competence needed. The utilization of social competence at higher rather than lower levels could mean more costs and more training for which the business may not have immediate use. Originality value This paper advocates the need to improve the content of entrepreneurial training packages to include the reinforcement of social competency skills in terms of relationship management as this may be the key to the facilitation of access to resources for innovation and growth.
... Finally, sustainable PIP is measured using a scale of three items [46,81,[90][91][92][93]. This paper begins by focusing on Creativity as an antecedent of sustainable PIP. ...
Article
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The analysis of human resources and sustainable innovation through organizational variables is useful, albeit limited, for predicting complex interactions for sustainability development in small and medium-sized enterprises (SMEs). This paper seeks to overcome this limitation, proposing three models with variables at two levels, namely, for the development of creativity (individual level) and sustainable product innovation performance (organizational level) and sustainability development. Theoretical models are tested using the Structural Equations Model. It is posited that knowledge, motivation, and relationships (individual level) may be predictors of creativity. In addition, creativity is analyzed as a mediator between human resources and sustainable product innovation performance. In this way, it is easier for SMEs to detect on which aspects of HR they should place greater emphasis for sustainable product innovation performance (PIP), with the purpose of reducing the ones associated with the Covid-19 crisis and obtaining a sustainable world. Information was obtained through an online questionnaire involving a sample of 245 certified innovative Spanish SMEs. The results support major findings: (a) knowledge, (b) motivation, and (c) relationships have a positive impact on creativity; (d) the three models hold that creativity fully mediates human resources and sustainable product innovation performance. The paper contributes to the literature on the human resources and sustainable product innovation performance by adopting a multidisciplinary approach, as well as by analyzing variables on two levels, measuring the most internal aspects of employees (wishes, emotions, ideas, or feelings), and explaining the mediating role of employee creativity.
... HC contains skilled, experienced, educated and qualified workers those support the advancement of novel products, services and procedures (Alpkan et al., 2010;Hayton, 2005). These employees may challenge the established practices of organizations. ...
Article
Purpose The purpose of this study is to investigate the moderating role of knowledge management (KM) strategies in developing the effect of intellectual capital (IC) on innovation for small- and medium-sized enterprises (SMEs). Specifically, the current study explores how different interactions between IC and KM strategies lead to more powerful innovation in SMEs. Design/methodology/approach This study analyzes survey responses from 170 owners/managers of SMEs in Iran. The study uses partial least square structural equation modeling methods within Smart PLS software. Findings This study reveals that first IC has an excellent level of engagement with both incremental and radical types of innovation, but its engagement level with radical innovation is higher than that for incremental innovation. Second, the human capital component of IC has a direct positive impact on radical innovation although it has no significant impact on incremental innovation. Third, the personalization strategy of KM positively moderates the impact of human capital on both incremental and radical innovation. Originality/value This paper is an empirical attempt in SMEs to combine IC and KM strategies to strengthen innovation. It presents research community for SMEs of a developing country that has been investigated in a limited way compared to large firms of developed nations and provides valuable insights into further research.
... Human capital is considered the primary foundation for organizational innovation (Dost et al., 2016) because the employees' skills, competence and expertise in their roles and functions all stimulate innovation (Kuczmarrski, 1996). Hayton (2005) found that human capital influences innovation among high-technology new ventures. Similarly, Bontis et al. (2000) argues that human capital is an important source of innovation and strategic renewal. ...
Article
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Purpose: Many firms struggle to implement strategies that can successfully enhance the environmental sustainability of their processes. Drawing on the theories of green intellectual capital and complementary assets, this study develops a model describing the mechanism whereby firms can translate a green (i.e., environmental) strategy into a superior green process innovation performance (GPIP). Design/methodology/approach: Regression analysis of multi-source survey data collected from 514 managers at 257 firms (257 top management members and 257 safety or environmental managers) was used to test the hypotheses. Findings: A firm’s green strategic intent has positive effects on the three aspects of green intellectual capital (i.e., human, organizational, and relational capital). In turn, these three aspects have positive effects on GPIP. Moreover, green organizational capital positively moderates the effect of green relational capital on GPIP, whereas it negatively moderates the effect of human capital on GPIP. Practical implications: In order to implement a green strategy successfully, especially in polluted industries such as the chemical industry, managers need to develop not only the firm’s tangible resources, but also its intangible resources. The more they invest in green organizational capital, the higher the level of GPIP that can be achieved. On average, a firm’s green human capital is more important than its organizational and relational capital. Moreover, its organizational capital helps capture the benefits of its relational capital, but it impairs the creativity of its human capital. Originality/value: We contribute to the literature on green strategy implementation by suggesting that green intellectual capital plays a mediating role in the relationship between a firm’s green strategic intent and GPIP.
... Moreover, EO affects firm growth (Casillas & Moreno, 2010) and internationalization intentions, depending on team composition (e.g., whether there are many family members on the team) (Alayo, Maseda, Iturralde, & Arzubiaga, 2019). Another effect of EO is seen as the engine of change that allows developing new markets (Ball, 2005), longevity and/or attendant conditions (Zellweger & Sieger, 2012), and the acquisition of new knowledge that combined with existing knowledge generates new capabilities and resources for the firm (Hayton, 2005;Kim, Song, & Triche, 2015;Kim, Song, Sambamurthy, & Lee, 2012). Therefore, and in accordance with Wales et al. (2011), understanding which factors determine the effective manifestation of EO remains an important area of inquiry. ...
Article
Studies analyzing the entrepreneurial orientation of family businesses compared to their nonfamily counterparts have contributed to spreading the myth that family firms are less entrepreneurially oriented. However, the distinctive aspects characterizing the entrepreneurial orientation of family firms have received less scholarly attention. Aiming to advance this literature stream, this study postulates that family businesses are neither more nor less entrepreneurially oriented than nonfamily firms but express their entrepreneurial orientation differently, even when manifesting a similar level of entrepreneurial orientation. Building on entrepreneurial orientation studies and adopting a family embeddedness perspective, our multi-case study of 10 small artisan family firms with a high entrepreneurial orientation shows that family firms express their entrepreneurial orientation according to a set of interplaying firm- and family-level factors. The relationship among these factors leads to three different entrepreneurial orientation configurations: generational clash, family mirroring, and evolutionary adaptation. Our study of these configurations and the underlying nuances provide novel contributions to the literature and several implications for practice.
... For example, prior studies have shown the impact of an organization's strategic orientation (Kakapour et al. 2016), barriers to technological adoption (Laplume et al. 2014), organizational design (Foss et al. 2014), and organizational structure (Bhardwaj and Momaya, 2006) on the entrepreneurial efforts of individuals within an organization. Other organization-based situational contingencies have been identified, including: the diversity of the top management team (Hayton 2005), quality of business and institutional ties (Yiu et al. 2007), information system capabilities of a firm (Simek, et al. 2009), structural factors (Burgers & Covin, 2016), absorptive capacity (Zahra, 2015), and networking capabilities of a firm (Sakhdari et al. 2014). ...
... The change management process in SME can be explore through growth context from presenting resources in four distinct forms adopted by Salder, et al (2020) which classifies resources into four key dimensions, namely: 1. Characteristics: define a set of structural characteristics, including age, size, industry and ownership, determine the firms' capacity for, ability, and commitment to growth. 2. Assets: acquisition and embedding of organizational resources, such as finance, intellectual property and human capital (Hayton, 2005), and these based capabilities become an internal asset in the company to shape the growth process. 3. Strategy: strategy is found in multiple forms at firm and sub-firm level, representing planned and behavioural responses to evolving environmental conditions (Chebo and Kute, 2019), contributing toward improvement in resources and capabilities to meet environmental challenges. ...
... Past academic researchers have categorized IC into two to four dimensions (D zenopoljac et al., 2016;Hayton, 2005). Erik Sveiby (1997) divides it into human specific and organization specific. ...
Article
Purpose The main purpose of this study is to empirically investigate the impact of intellectual capital efficiency on US multinational software companies' performance from 2012 to 2016 by applying data envelopment analysis (DEA). Design/methodology/approach It adopts a new slacks-based measure (SBM) to obtain a more accurate performance estimation and rank between companies. Regression analysis is used to test the overall IC and each of its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital). Findings The univariate result shows that multinational companies are more efficient than non-multinational companies. However, the regression result shows that multinationality can hardly explain the firm efficiency of software firms. Another interesting finding is that intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements. Research limitations/implications The results show that multinational companies have higher efficiency scores than non-multinational companies. In addition, Intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements. Practical implications Overall, the study highlights the needs of having intellectual capital and its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital) to increase firm efficiency. Originality/value First, the authors use a more comprehensive elements of IC, which are human capital, innovation capital, process capital and customer capital for a better IC measurement. Second, this study makes the first attempt using the DSBM model via DEA to examine the operating efficiency of US multinational software firms.
... Other studies investigated the role of Islam in entrepreneurial activities (Kayed & Hassan, 2010).To elaborate more, encouraging the small enterprises' inception and identifying the factors contributing to their establishment assume very significant. For that, researchers such as (Hayton, 2005;Hormiga et al., 2011;Link & Ruhm, 2011;Musteen & Ahsan, 2013) have attempted to explore the relationship between the role of intellectual capital and venture success. Others investigated the impact of intellectual capital on creating ventures (Matricano, 2016;Ramos-Rodríguez, Medina-Garrido, & Ruiz-Navarro, 2012). ...
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The study investigated the effect of intellectual capital on entrepreneurs' entrepreneurial intention in Saudi Arabia. It employed the 2016 General Entrepreneurship Monitor (GEM) data gathered by the General Adult Population Survey (APS) from 4053 respondents in Saudi Arabia and analyzed it using binominal logistic regression. The study revealed that networking (relationship with entrepreneurs), opportunities recognition, knowledge, and skills positively impact entrepreneurs' entrepreneurial intention. Owning and managing an enterprise surprisingly did not affect the respondents' entrepreneurial intention. Furthermore, age reported a significant negative connection with entrepreneurial intention, and gender showed no effect. Finally, the education categories all revealed a negative impact on entrepreneurial intention except for some secondary classes. The study adds contribution in the context of intellectual capital and entrepreneurial intention. It also provides policymakers and other stakeholders directions on the importance of intellectual capital in effecting entrepreneurial intention. The study is limited to Saudi Arabia's context only, and it includes merely a few items selected for measuring intellectual capital and entrepreneurship, which may hamper its generality. Future studies may focus on other contexts with moderators and mediator variables.
... For example, Harrison and Sullivan [8] pointed out that intellectual capital can enhance the returns of strategically important businesses across the board while enhancing enterprises' innovation capabilities. Furthermore, Hayton's [9] empirical study of 237 high-tech companies in the United States showed that intellectual capital is a source of technological development that can significantly increase innovation performance by reducing risk. Meanwhile, Chahal and Bakshi [10], through an empirical study of the banking industry, confirmed that intellectual capital could positively affect technological innovation and improve the competitive advantage of enterprises. ...
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Promoting technological innovation is an essential issue for enterprises to maintain sustainable development in a highly competitive environment. Previous studies have focused on exploring the linear relationship between intellectual capital and technological innovation, ignoring the possibility of a non-linear relationship between them. This study draws on a dualistic view of intellectual capital and divides it into two elements: human capital and structural capital. Based on the factor endowment theory, we explored the non-linear relationship between intellectual capital and technological innovation, using the data of Chinese A-share listed companies from 2014 to 2019 as the sample, and then analyzed the moderating effect of corporate social responsibility (CSR) on their relationship. The results of the OLS regressions indicated a significant U-shaped relationship between intellectual capital and its elements on technological innovation. This means a “regressive” effect of low levels of intellectual capital on technological innovation and an “incremental” effect of high levels of intellectual capital on technological innovation. Improving CSR could positively enhance the U-shaped effect of intellectual capital on technological innovation. A further study found that the U-shaped effects of intellectual capital and human capital on technological innovation were still supported in state-owned and private enterprises. The U-shaped effect of structural capital on technological innovation was still supported in private enterprises but not in state-owned enterprises. This study explored the relationship between intellectual capital and technological innovation from a unique perspective. It provides a theoretical basis for enterprises to appropriately fulfill their social responsibility and actively promote technological innovation.
... Knowledge is another critical resource for CE entities (Gassmann and Becker 2006;Gurău and Dana 2020). Intellectual capital and top management team diversity have a positive influence on innovation and venturing activities (Hayton 2005;Srivastava and Lee 2005). Thereby, top managers try to grow beyond the limits set by the resources they currently control, with the aim of acquiring more technology investment in their firm. ...
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Corporate entrepreneurship (CE) is essential for today’s firms and currently a topic of considerable interest within the business community. Although the magnitude of related studies has increased over the last years, research on CE is missing an inte- grated concept and a research agenda for understanding the dynamics of resource deployment and withdrawal, resulting from legitimacy within the organization. The objective of this study is to examine the determinants influencing the provision and withdrawal of resources in the context of corporate entrepreneurship and identify the underlying strategies for gaining legitimacy. Analyzing more than 30 years of research, we provide a multidimensional framework synthesizing the state-of-the-art of resource allocation and withdrawal in CE. Our findings suggest that CE entities undertaking legitimation efforts, to be perceived as a meaningful and trustworthy organizational element and receive active and passive support, is very important. Based on the structured literature review, we propose a legitimacy perspective on the resource dynamics in CE settings, to further advance our understanding of resource deployment and withdrawal within organizations.
... Other studies investigated the role of Islam in entrepreneurial activities (Kayed & Hassan, 2010).To elaborate more, encouraging the small enterprises' inception and identifying the factors contributing to their establishment assume very significant. For that, researchers such as (Hayton, 2005;Hormiga et al., 2011;Link & Ruhm, 2011;Musteen & Ahsan, 2013) have attempted to explore the relationship between the role of intellectual capital and venture success. Others investigated the impact of intellectual capital on creating ventures (Matricano, 2016;Ramos-Rodríguez, Medina-Garrido, & Ruiz-Navarro, 2012). ...
Article
Full-text available
The study investigated the effect of intellectual capital on entrepreneurs' entrepreneurial intention in Saudi Arabia. It employed the 2016 General Entrepreneurship Monitor (GEM) data gathered by the General Adult Population Survey (APS) from 4053 respondents in Saudi Arabia and analyzed it using binominal logistic regression. The study revealed that networking (relationship with entrepreneurs), opportunities recognition, knowledge, and skills positively impact entrepreneurs' entrepreneurial intention. Owning and managing an enterprise surprisingly did not affect the respondents' entrepreneurial intention. Furthermore, age reported a significant negative connection with entrepreneurial intention, and gender showed no effect. Finally, the education categories all revealed a negative impact on entrepreneurial intention except for some secondary classes. The study adds contribution in the context of intellectual capital and entrepreneurial intention. It also provides policymakers and other stakeholders directions on the importance of intellectual capital in effecting entrepreneurial intention. The study is limited to Saudi Arabia's context only, and it includes merely a few items selected for measuring intellectual capital and entrepreneurship, which may hamper its generality. Future studies may focus on other contexts with moderators and mediator variables.
... The interest of policy makers is rising towards start-ups or venture creation, which are believed to strengthen social and economic development (Audretsch, 2004). These factors collectively emphasise on investigating the role of intellectual capital in the success of start-ups (Hayton, 2005;Hormiga et al., 2011;Link and Ruhm, 2009;Martina and Ahsan, 2013;Peña, 2002). ...
... In some earlier studies, Hayton [64] showed that human capital diversity contributed to the innovation of high-tech new ventures in the United States, and the study by Bogers et al. [65] further found that employee diversity contributed to a firm's open innovation strategy. In particular, employee diversity in knowledge and educational background was positively associated with openness at the firm level, and work experience diversity was not directly related to it. ...
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There is no doubt that the primary reason that firms encourage knowledge sharing is to drive innovation. As nutrients for innovation, what role do the different elements of intellectual capital play in this relationship? When we consider the ambidexterity of enterprise innovation––exploratory and exploitative––how do the different elements of intellectual capital affect the relationship between them? This study adopts a triadic perspective to divide intellectual capital into human, structural and relational capital. We analyzed 349 questionnaires from high-tech enterprises and found that knowledge sharing had a significantly positive effect on all three elements of intellectual capital, and human capital and structural capital had a positive effect on ambidextrous innovation. Relational capital had a positive effect on exploitative innovation but no significant effect on exploratory innovation. Unexpectedly, there was no direct effect of knowledge sharing on ambidextrous innovation, and the elements of intellectual capital play full mediations among them. This may suggest that firms should pay more attention to the role of relational capital when they adopt exploitative innovation. At the same time, we remind managers that innovation may be promoted only when knowledge sharing increases intellectual capital. Therefore, the misuse of management tools should be avoided, and ineffective management practices should be reduced. In addition, we explored the relationship between knowledge sharing and the open innovation paradigm and made some suggestions for future research.
... Additional dependent variables are more directly related to the entrepreneurial orientation that may be used to model the link between entrepreneurship and business performance (Muhammed and Abdulkadir, 2021;Kittikunchotiwut, 2020). Some of the important components of organisational resources are intellectual capital, human capital and social capital (Hayton, 2005). These resources can create competitiveness in any organisation. ...
Article
Purpose This research would like to address the issues associated with individual entrepreneurial orientation, which involves entrepreneurial leadership and entrepreneurial ability as the key determinants of MSME growth. It will also explore both mediating and moderating roles of employee motivation and government intervention, respectively during the pandemic situation. Design/methodology/approach A purposive sampling technique was applied during pilot study and during the final data collection phases. Exploratory Factor Analysis (EFA) was conducted using varimax rotation to reduce a large number of variables into a smaller set of interpretable underlying factors. Further CFA and SEM are respectively applied to examine the psychometric properties of the scales and test the hypotheses of the research model. Findings The study's findings revealed a favourable association between entrepreneurial orientation, business financing, management, market practices, and MSME growth performance. The results support the notion that government policy plays a significant role as a full moderator. Practical implications Although the MSME sector receives government support, its implementation requires a skilled leader who can run the business profitability. The findings support this objective. Originality/value This paper seeks to give important insights into one of the understudied but quickly expanding MSME entrepreneurship, and how this environment influences individual entrepreneurial orientation and the formation of entrepreneurial leadership. This opens up a previously unexplored area for fresh insights and future study on enhancing entrepreneurship development research and practice for the MSME sector.
Article
The relevance of the research topic is due to the need to strengthen and expand the technological transformation of the Russian economy, which should contribute to the growth of high-tech products production and increase the competitiveness of domestic manufacturers in the world market. The hypothesis of the study is that the component features of the intellectual capital of the industrial region determine the predisposition/absence of predisposition of its economy to make a transition to a new dominant technological structure. The purpose of the scientific research is to identify the types of intellectual capital and which of them form the predisposition of regions to the technological transformation of their economies. During the study, the following tasks were solved: structural elements of intellectual capital that affect the innovative and technological development of the region, namely: education, are justified; innovative competencies; innovative skills; altruism; cognitive and non-cognitive competencies; sensitivity to change and adaptation to technological changes. Extractive, mono-inclusive and multi-inclusive type of intellectual capital of industrial regions, corresponding to the fourth, fifth and sixth technological framework, respectively, is disclosed. A methodology for estimating intellectual capital, which determines the dominant technological structure of the economy of the industrial region, has been developed on the basis of the use of the matrix method and Frobenius norms, which make it possible to conduct research over a long-time interval taking into account the dynamic trends of the main capital elements. The testing of the author's methodology revealed that such territories as Kemerovo Region, Nizhny Novgorod Region, Perm Territory, Republic of Bashkortostan, Republic of Tatarstan, Sverdlovsk Region, Udmurt Republic, Chelyabinsk Region, Chuvash Republic and Yaroslavl Region have intellectual capital for further technological development of the region's economy. The novelty of the obtained results lies in the development of a typology of regions, which enables one to identify the territories most prone to further technological transformation of the economy in the context of types of intellectual capital. The practical significance of the results obtained lies in the possibility of their use by authorities as a tool for developing a strategy for industrial development and structural adjustment of the economy of industrial regions.
Article
The traditional closed business models (BMs) are widespread and continue to dominate the current business world. Today, more and more companies are using outside technologies and innovations to develop new products and actively look at business opportunities created through sharing knowledge, competencies, and technological resources. The next phase is to open the business model to reap the full benefits of open innovation (OI). As the driver of effective knowledge and technology flows (inside-out and outside-in), open innovation cannot capture value of these flows unless it is leveraged by key internal resources. Based on the resource-based view (RBV), we claim that such technological investments cannot make organizations more effective unless they are accompanied by organizational complementary assets. Thus, the theoretical model exposes Open Business Model (OBM) antecedents based on a Business Model Innovation (BMI) perspective. Moreover, the literature of the BM innovation values the link between BM and OI and asserts that network, structures and technological knowledge management infrastructure are required to capture the value created by these flows and drive companies to open their BM and thrive. The paper performs a structural model analysis with a sample of 134 respondents in the information and communication technologies (ICT) based sectors. The results show the positive impact of technological knowledge management infrastructure on inbound OI and the impact of relational capital on the two types of OI strategies and in leveraging open BM in ICT-based sectors. The paper provides insights to firms OI initiatives holders to establish effective networked BMs.
Article
Purpose Looking for ways to gain competitive advantage (CA) is one of the most challenging issues for today's businesses. Although previous research considered several aspects in this regard, the literature has largely overlooked the process of gaining CA via strategic intangibles, regarding business type and context. This paper aims to examine how to gain CA through strategic intangibles such as intellectual capital (IC). Design/methodology/approach Building on the concept of IC, and using data gathered from both the manufacturing/service and public/private firms, the authors tested a moderated mediation model to determine if the effect of IC on CA was conditioned on business type, competitive intensity and managerial support. Findings Among the factors in the relationship between IC and CA, the results discovered the role of business intelligence (BIN) and brand image (IM), as two key mediators. Furthermore, it was revealed that managerial support and competitive intensity moderate the relationship between IC, the mediators and CA. Finally, the authors provide academics and practitioners with some implications. Originality/value Previous research did not fully address the aforementioned antecedents (i.e., IC, BIN and IM) toward CA in a comprehensive model. Developing the path toward CA by focusing on the role of intangibles, the authors proposed a moderated mediation model, which has hitherto received scant attention in the field of competition.
Article
Purpose How does emerging market multinational enterprises’ (EM MNEs) resource vulnerability to domestic institutional weakness influence the escapist outward foreign direct investment (OFDI)? This study aims to focus on how varying qualities of technological resources make EM MNEs vulnerable to institutional weakness at home and when such a vulnerability triggers escapist OFDI. Design/methodology/approach A mix of primary and secondary data is used to study evidence of escapist OFDI in the case of multilatinas. Structural equation modelling and hierarchical regressions were applied to test the hypotheses. Findings Domestic institutional weakness triggers escapist OFDI only when EM MNEs’ resources are vulnerable to institutional pressures. Technological leadership increases the vulnerability of EM MNEs to the pressure of institutional weaknesses at home, which, in turn, motivates escapist OFDI. Originality/value In discussing the role of firm resources and their vulnerability to institutional weakness, a mechanism is proposed to shed light on how EM MNEs transform the general country framework of the institutional environment into the specific decision to escape via OFDI.
Article
The aim of this paper is to study the influence of the environment on the link between intellectual capital and ambidextrous innovation. The environment has been considered taking into account the technological turbulence and the market turbulence. Using a questionnaire survey approach, data were obtained from 155 directors representing Tunisian SMEs. Two main theoretical implications were highlighted. The first is the extent of the intellectual capital contribution, with its human, organizational and relational components, to the reading of the ambidextrous innovation within the organization. The second is the moderating role of environmental turbulence. From a practical side, the study tried to reap the intellectual capital benefits and the intermediate effect of environmental turbulence to improve the manager’s yields in term of innovation. Interestingly, results show that human capital affects ambidextrous innovation. It influences radical innovation more than incremental innovation. Relationship capital promotes only incremental innovation. Organizational capital influences ambidextrous innovation. Its effect on incremental innovation is greater than on radical innovation. Both technological and market turbulences moderate negatively the human capital effect on incremental innovation. Counter to our expectations, however, environmental turbulence does not moderate the interrelationships selectively between relational capital, organizational capital and ambidextrous innovation. The present study is one of the few studies conducted in Tunisia investigating the field of intellectual capital and the first studying its effect on the ambidextrous innovation in a turbulent environment.
Article
Purpose Adopting more sustainable and social-oriented perspectives is crucial for the emergence of the so-called humane entrepreneurial ecosystems (HEEs), the last ones supporting the improvement of both economic, environmental and social wealth. Entrepreneurs act as keystone players in each entrepreneurial ecosystem, thus the emergence of Humane Entrepreneurship (HumEnt) is crucial in shaping HEEs. Given the role of culture in affecting HumEnt, the relationships between Humane Orientation (HO) – as defined in the GLOBE project – and the basic components of Humane Entrepreneurship (HumEnt) were, particularly, explored in a selected sample of countries. Both Intellectual Capital (IC) and knowledge management (KM) perspectives were adopted in pursuing the research goal. Design/methodology/approach The study approaches this by the mean of the Ward method with Euclidean squared distance and the k -means method. The GLOBE project, the Global Entrepreneurship Monitor (GEM), the Environmental Performance Index (EPI) and the International Social Survey Program (ISSP) were used as data sources. Correlations between HO “as is” scores and each components of HumEnt were checked for the world sample ( N = 36), as well as for the groups of innovation-driven countries ( N = 17) and European countries ( N = 14). Findings Research results show a conditional confirmation of the developed hypotheses, depending on countries cultural levels of HO, with a moderating role exercised by the economic development on the relationship between culture and HumEnt. Originality/value Given the increasing pressure of fundamental societal challenges, such as climate change, poverty and increasing inequality within and between countries intensified by pandemic (UN report, 2021), integrating the more traditional approaches to profit seeking with the more sustainable and human-centric perspective is a priority for both scholars and society at large. Previous researches do not provide explanation about the contextual factors responsible for the emergence of more humane-oriented entrepreneurial ecosystems, especially when referring to culture. This article broadens our understanding about the reason why both HumEntr and HEEs differently arise and develop in different cultural contexts.
Article
More than half of Chinese high-technology firms are led by top executives (chairman and CEO) with R&D background. This study investigates whether and how top executives’ R&D background affects corporate innovation outcomes using a sample of listed firms in the high-technology industries in China. We find that the R&D background of top executives is positively related to innovation outcomes. We also find evidence on the mediating effect of R&D expenditure and moderating effect of corporate risk-taking on the above relationship. Our baseline results are robust to tests that address concerns caused by potential unobservable characteristics, reverse causality and other issues. Findings of our study have important implications for firms that aim to enhance their innovation outcomes and countries regarding their research policymaking and R&D management.
Article
We investigate the role of entrepreneurs’ human capital on the potential of newly created ventures to receive equity funding from Accelerators and Business Angels using a resource-based approach to entrepreneurship theory. Using data from 10,563 for-profit innovative ventures, we find significant differences between those two groups. More specifically, formal education and founding experience of the entrepreneurial team is positively associated with the likelihood of the team to receive equity from Angels but negatively associated with the likelihood of the team to receive equity from Accelerators. Overall, our results are in line with the theoretical argument that human capital signals are important in reducing the information asymmetries faced by angels and ultimately driving entrepreneurs’ success in securing angel funding, but our results also suggest that some aspects of human capital signals do not contribute to the entrepreneur’s success in receiving accelerator funding. Our findings have important repercussions for the quality of design and operation of both private and state supported programmes and accelerator managers.
Article
Purpose For the past two decades, intellectual capital has played an increasingly important role in firm performance around the world. However, the importance of intellectual capital in Vietnam, and especially in the banking sector, has largely been ignored in the literature. This study is the first to examine the effect of intellectual capital on bank performance in Vietnam. In this paper, intellectual capital is decomposed into three components: (1) capital employed efficiency, (2) human capital efficiency and (3) structural capital efficiency. Design/methodology/approach The paper uses an unbalanced panel dataset on 14 listed banks in Vietnam for the period 2009–2018 for which required data are available, with the generalized method of moments. Findings The findings indicate that intellectual capital contributes significantly and positively to bank performance in Vietnam. In addition, bank performance is driven primarily by capital employed efficiency. Although human capital efficiency appears to contribute positively to bank performance, the effect on bank performance appears to be marginal. Originality/value The literature review indicates that the effect of intellectual capital on bank performance is mixed. This effect can be positive or negative or even show a U -shaped relationship. The effects of intellectual capital on firm performance are not consistent, depending on factors such as the quantitative technique and sample used. As such, this paper extends analysis of Vietnam to cover the 10-year period from 2009 to 2018. The literature review reveals that the contribution of intellectual capital to bank performance has largely been ignored in the context of Vietnam. Studies have been conducted on the Gulf countries, such as Buallay et al. (2020). However, because the context in Vietnam differs from that of the Gulf countries, their experience might not be relevant to Vietnam. Vietnam is an emerging market in Southeast Asia, whereas Gulf countries have high income levels. So, it is necessary to examine direct evidence on Vietnam.
Article
Although it is well recognized that human capital is an important strategic asset for firms, the evidence regarding its role in developing new products is inconclusive. Prior research has overlooked the contingent role of industry clusters in the relationship between human capital and product innovation. This study suggests that organizational learning and resource availability from industry clusters shape the relationship between human capital and innovation. Using multilevel and multisource onsite survey data from 236 firms in 36 Chinese township clusters, we find that the positive effect of human capital is weaker when firms learn more from inside industry clusters and is stronger when firms learn more from outside clusters. Moreover, human capital has a stronger positive effect on innovation among firms that are located in clusters with more spinoffs. These findings provide novel insights into how human capital can be matched with the features of clusters to foster innovation.
Article
Purpose This paper reviews the development of knowledge creation theory in the last quarter-century and how it has contributed to innovation management and looks into social and human aspects of innovation in the era of “Society 5.0”. Design/methodology/approach This research aims to relate basic theoretical concepts: knowledge creation and knowledge assets, purpose, leadership, and place (Ba) for innovation to drive innovation and its management as a whole ecosystem. It also discusses the application to innovation management systems open innovation, and social innovation. Findings Today's innovation demands socio-economic fusion that goes beyond current corporate boundaries. By preparing the system (knowledge ecosystem) as the basis, we could build the bridge, and such fusion would be possible. Research limitations/implications This paper shows the framework of the idea. Evidence-based research based on “knowledge assessment” will be discussed on another occasion. Originality/value This research is to explain knowledge management, innovation, and social innovation beyond the corporate framework.
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The objective of this paper is to test the moderating effect of Strategic Human Resource Management (SHRM) in the relationship between organizational innovation performance and corporate entrepreneurship as a measure in technology-based firms. The design and methodology is a postal survey is used in this research. A sample of 250 European technology-based organizations is selected from Amadeus database. The questionnaire will be sent to CEO, finance managers and HR managers. A hierarchical moderated regression will be used as the statistical analyze and we expect all three hypotheses will be supported by results. This paper helps to fill the gap in the relationship between corporate entrepreneurship and Strategic Human Resource Management (SHRM) in order to achieve an innovative organization performance. Besides, it will give company managers some inspirations to develop competitive advantages in technological organizations.
Article
There is a paucity of research on the effects corporate policies have on fostering innovative activities in firms, while research and development (R&D) investments offer a source of innovations in firms. Using governance data from Kinder, Lyndenberg, and Domini, Research and Analytics, Inc., R&D and financial data from Compustat, and market data from CRSP during the period from 1996 through 2011 this paper investigates whether Lesbian, Gay, Bisexual and Transgender (LGBT) ‐supportive corporate policies promote innovative activities in US firms. To the extent that LGBT–friendly policies allow inclusive working environments and therefore attract and retain talents, corporate can engage more in innovative activities. The findings show that firms with LGBT–supportive policies nurture employees' commitment to the firms and engage more in innovative activities. Heckman selection model, propensity score matching and difference‐in‐difference results all confirm the main findings from instrumental variable (IV) analyses.
Article
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The main goal of this article is to analyze the level of differentiation of awareness and knowledge among managers of small, medium and large enterprises in the scope of the essence and meaning of intellectual capital as well as the influence of its elements on the sustainable development of enterprises in Poland. Intellectual capital is perceived as a key resource of an enterprise. It is also one of the most valuable resources of an enterprise, which enables its sustainable development. It is critical base of organization’s innovative and strategic sustainability. This article is based around the results of a survey conducted in 2019 among 1,067 enterprises operating in Poland. For the purposes of the verification of the statistical hypothesis, the classical chi-squared test of independence has been applied along with the analysis of variations for fuzzy numbers (FANOVA) with an assumed level of significance α = 0.05. The assessment of the influence of the elements of intellectual capital on the sustainable development of enterprises has been conducted with the application of fuzzy conversion scales. In fuzzy conversion scales, points are most often expressed as triangular or trapezoidal fuzzy numbers. The conducted research indicates a difference between theory and practice in the field of intellectual capital management among enterprises in Poland. On the one hand managers declare awareness of the importance of the influence of intellectual capital on the development of enterprises in Poland, whereas on the other hand, a significant majority of them state that they have not implemented an intellectual capital management strategy at their enterprises and neither identify nor measure this capital or its elements.
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The aim of this chapter is to provide a survey of the academic research dedicated to human capital-intensive firms (HCIF) both at a theoretical and empirical level. The authors conduct a thematic inventory of the published works in this area to assess the dynamism of the field research and provide an exploratory analysis. They develop a bibliometric analysis based on the three widely used databases (Econlit, Science Direct, and Wiley) over the time period 1992-2018. From a cluster analysis, the chapter draws a portrait of HCIF based on the highlighted distinctive features. It also gets more information on the scope of existing research and the issues, limits, and prospects involved.
Article
Purpose The main aim of this paper is to demonstrate that “volunteer” employees’ perception of dimensions of intellectual capital (IC) – human, structural and relation capital – creates a motivational environment to enhance knowledge-sharing intention (KSI) and stimulates “volunteer” employee engagement (VEE). The model is applied on the non-profit organizations (NPOs) sector that base their path on sharing values with volunteers and employees in relation to which they have to implement engagement strategies that are beneficial to both developing and deploying individual and organizational human capital. Design/methodology/approach To verify the existence of relationships between the constructs of IC, KSI and VEE a partial least squares structural equation model on a sample of 300 “volunteer” employees of NPOs was tested to verify the research hypotheses, as this could explain the causal relationships. Findings The results confirm that KSI is positively and directly influenced by the favourable environment resulting from the motivations below the dimensions of IC. The improvement of KSI, determined by IC, has a positive effect on VEE. Research limitations/implications Despite the limitation created by the peculiarities of NPOs and the role of volunteers, this paper suggests a strategic approach that the management could implement to create an environment based on the exchange of knowledge and to increase engagement in the value co-creation process. Originality/value The ability of a company to adopt sharing strategies depends on the existence of an environment in which individuals are willing to exchange knowledge realizing mutual benefits. The work broadens this perspective by providing governance with a behavioural model that creates a direct relationship between IC, KSI and VEE.
Article
Purpose This study aims to fill the research gap on the moderating effect of leadership empowerment on the relationship between relational capital and firms' innovation performance in the entrepreneurial ecosystem by addressing the following research questions: (1) How do different types of relational capital positively or negatively affect firms' innovation performance in China? (2) Does leadership empowerment play a moderating role in the above relationship? Design/methodology/approach Using data derived from the firms distributed in eastern, central and western China, the authors study the impact of relational capital, one of the dimensions of intellectual capital, on firms' innovation performance in the entrepreneurial ecosystem. Based on firms' operation process regarding the relationships with their external stakeholders, the authors divided relational capital into three aspects: trust, reciprocity and transparency. Furthermore, leadership empowerment is taken as the moderating variable in the above theoretical relationship. Findings There is significant evidence that trust, reciprocity and transparency have positive impact on firms' innovation performance. Leadership empowerment positively moderates the impact of trust and reciprocity on innovation performance. However, there is no significant moderating effect of leadership empowerment on the relationship between transparency and innovation performance. Originality/value In the era of the knowledge economy, the entrepreneurial ecosystem is a critical foundation for firms to improve their innovation capacity and performance, and intellectual capital is one of the most imperative drivers in terms of firms' innovation performance. Nevertheless, few studies have investigated thoroughly concerning the relationships among the entrepreneurial ecosystem, intellectual capital and innovation performance. As this study explores the relationships among the above three factors, it may have profound theoretical and practical significance for firms to extent external relationship networks, improve their innovation performance and strengthen their core competencies, which is of great significance to facilitate the construction of entrepreneurial ecosystem.
Article
Purpose The aim of the study is to explore the genesis of entrepreneurial ecosystems (EE) and highlight the role played by intellectual capital (IC) in that process. Specifically, the paper adopts the collective intelligence approach, and the study shows how human capital (HC), structural capital (SC) and relational capital (RC) interact to create an entrepreneurial ecosystem. Design/methodology/approach The paper adopts a single case study of an Italian EE. The data analysis is based upon the collection of different sources of data: semi-structured interviews with representatives of each actor of the ecosystem; email correspondence; meetings report; a 24-months period of direct observation. Given the novelty of the topic, the qualitative method seems well suited for studying innovation-based EE since the method offers rich data about a phenomenon in real-life context. Findings The case is a top-down, innovation-based EE in which all main components of the IC play a crucial role from the initial stage. Findings show how the constant interchange between IC components occurs at two different levels: the micro and the meso level. HC and RC play major roles at both levels, whilst SC only occurs at a meso level, representing the environment in which the whole ecosystem takes place. Additionally, the use case, a new intangible asset integrating all three components of IC, emerged as one of the main outcomes of this innovation-based EE. Originality/value The paper contributes to a rather unexplored topic in the existing literature on EE and IC, namely the formation process of EE and the role played by IC within that process. Additionally, through the application of the collective intelligence approach, the authors shed light on the need to manage IC at both micro and meso level in the creation of an EE.
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Corporate entrepreneurship (CE) has long been recognized by scholars as a viable way for firms to sustain and enhance their competitive advantages (e.g., Burgelman,.Administrative Science Quarterly 28:223–244, 1983; Covin and Miles,.Entrepreneurship Theory and Practice 23:47–63, 1999; Guth, W. and Ginsberg, A. 1990. Guest editor’s introduction: Corporate entrepreneurship. Strategic Management Journal, 11(Summer Special Issue): 5–15.; Zahra,.Journal of Business Venturing 10:225–247, 1995;Zahra,.Academy of Management Journal 39:1713–1735, 1996;). In this chapter, we focus on a modern classic on this topic: the work by (Dess et al.,.Journal of Management 29:351–378, 2003). We first present the four major emerging issues in corporate entrepreneurship discussed in (Dess et al.,.Journal of Management 29:351–378, 2003). We further present how each one of these four areas inspired new scholarly works. We conclude with a discussion on directions for future research.
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