HARNESSING INTELLECTUAL CAPITAL FOR INNOVATION: THE MODERATING EFFECT OF DIGITAL TRANSFORMATION IN MANUFACTURING INDUSTRIES
Keywords:
Intellectual capital, Digital transformation, Innovation, Manufacturing firms, Economic benefitsAbstract
This study explores the interplay between intellectual capital (IC), digital transformation (DT), and innovation in Chinese manufacturing firms, emphasizing the moderating role of DT. Utilizing data from Shenzhen Stock Exchange-listed firms from 2013 to 2023, the research employs Ordinary Least Squares (OLS) and Partial Least Squares (PLS) regression models to test the hypotheses. The findings reveal that DT significantly enhances the positive effect of IC on innovation. The study underscores the importance of fostering IC through human, structural, and relational capital and leveraging DT to maximize innovative outcomes. These insights are particularly relevant for policymakers and business leaders aiming to boost innovation in the knowledge economy. The results advocate for regulatory frameworks and incentives that support innovation driven by IC and DT, highlighting the substantial economic benefits these elements can bring. This research contributes to a deeper understanding of how IC and DT interact to drive innovation, offering valuable implications for technology management, entrepreneurship, and economic policy.References
[1] G Secundo, V Ndou, P Del Vecchio, et al. Sustainable development, intellectual capital and technology policies: A structured literature review and future research agenda. Technological Forecasting and Social Change, 2020, 153: 119917.
[2] H A Ferenhof, S Durst, M Z Bialecki, et al. Intellectual capital dimensions: state of the art in 2014. Journal of Intellectual Capital, 2015, 16(1): 58–100.
[3] R Hejazi, M Ghanbari, M Alipour. Intellectual, human and structural capital effects on firm performance as measured by Tobin's Q. Knowledge and Process Management, 2016, 23(4): 259–273.
[4] D K Al‐Jinini, S E Dahiyat, N Bontis. Intellectual capital, entrepreneurial orientation, and technical innovation in small and medium‐sized enterprises. Knowledge and Process Management, 2019, 26(2): 69–85.
[5] Q Yu, S Aslam, M Murad, et al. The impact of knowledge management process and intellectual capital on entrepreneurial orientation and innovation. Frontiers in Psychology, 2022, 13: 772668.
[6] H Chahal, P Bakshi. Examining intellectual capital and competitive advantage relationship: Role of innovation and organizational learning. International Journal of Bank Marketing, 2015, 33(3): 376–399.
[7] P C Verhoef, T Broekhuizen, Y Bart, et al. Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 2021, 122: 889–901.
[8] S Hayaeian, R Hesarzadeh, M R Abbaszadeh. The impact of knowledge management strategies on the relationship between intellectual capital and innovation: Evidence from SMEs. Journal of Intellectual Capital, 2022, 23(4): 765–798.
[9] M á Galindo, M T Méndez. Entrepreneurship, economic growth, and innovation: Are feedback effects at work? Journal of Business Research, 2014, 67(5): 825–829.
[10] M J Zenglein, A Holzmann. Evolving Made in China 2025. MERICS Papers on China, 2019, 8: 78.
[11] J Chen, X Yin, L Mei. Holistic innovation: An emerging innovation paradigm. International Journal of Innovation Studies, 2018, 2(1): 1–13.
[12] L Bellora, T W Guenther. Drivers of innovation capital disclosure in intellectual capital statements: Evidence from Europe. The British Accounting Review, 2013, 45(4): 255–270.
[13] Y Li, Y Song, J Wang, et al. Intellectual capital, knowledge sharing, and innovation performance: Evidence from the Chinese construction industry. Sustainability, 2019, 11(9): 2713.
[14] J M Sohu, T Hongyun, U S Akbar, et al. Digital innovation, digital transformation, and digital platform capability: Detrimental impact of big data analytics capability on innovation performance. International Research Journal of Management and Social Sciences, 2023, 4(3): 265–281.
[15] S Magistretti, L Ardito, A M Petruzzelli. Framing the microfoundations of design thinking as a dynamic capability for innovation: Reconciling theory and practice. Journal of Product Innovation Management, 2021, 38(6): 645–667.
[16] D T Wong, E W Ngai. Linking data-driven innovation to firm performance: A theoretical framework and case analysis. Annals of Operations Research, 2024, 333(2): 999–1018.
[17] T Mahmood, M S Mubarik. Balancing innovation and exploitation in the fourth industrial revolution: Role of intellectual capital and technology absorptive capacity. Technological Forecasting and Social Change, 2020, 160: 120248.
[18] W C McDowell, W O Peake, L Coder, et al. Building small firm performance through intellectual capital development: Exploring innovation as the “black box”. Journal of Business Research, 2018, 88: 321–327.
[19] R Ngah, A R Ibrahim. The relationship of intellectual capital, innovation and organisational performance: A preliminary study in Malaysian SMEs. 9th World Congress of the Academy for Global Business Advancement (AGBA), 2012, 9(1): 593–596.
[20] J C Hayton. Competing in the new economy: The effect of intellectual capital on corporate entrepreneurship in high‐technology new ventures. R&D Management, 2005, 35(2): 137–155.
[21] S Cabrilo, S Dahms. How strategic knowledge management drives intellectual capital to superior innovation and market performance. Journal of Knowledge Management, 2018, 22(3): 621–648.
[22] X Zhang, X Ma, Y Wang, et al. What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership. International Business Review, 2016, 25(2): 522–534.
[23] J O R Cruz-González, J A V Amores-Salvadó. Technological innovation. An intellectual capital‐based view. R&D Management, 2011, 41(3): 319–319.
[24] T H Elsharnouby, S Elbanna. Change or perish: Examining the role of human capital and dynamic marketing capabilities in the hospitality sector. Tourism Management, 2021, 82: 104184.
[25] A Chatterji, A Patro. Dynamic capabilities and managing human capital. Academy of Management Perspectives, 2014, 28(4): 395–408.
[26] Y Han, D Li. Effects of intellectual capital on innovative performance: The role of knowledge-based dynamic capability. Management Decision, 2015, 53(1): 40–56.
[27] N Bontis. Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management Reviews, 2001, 3(1): 41–60.
[28] M Farzaneh, R Wilden, L Afshari, et al. Dynamic capabilities and innovation ambidexterity: The roles of intellectual capital and innovation orientation. Journal of Business Research, 2022, 148: 47–59.
[29] Y Bian, L Zhang. Corporate social capital in Chinese guanxi culture. In: Contemporary Perspectives on Organizational Social Networks. Emerald Group Publishing Limited, 2014: 421–443.
[30] G Martín de Castro, P López Sáez, J E Navas