Does intellectual capital matter? High-performance work systems and bilateral innovative capabilities

Abstract

Purpose -The purpose of this paper is to develop a systematic understanding of the mechanisms through which high-performance work systems (HPWSs) facilitate the incremental and radical innovative capabilities of organizations. Using a knowledge-based view of the firm, the paper introduces the mediating role of intellectual capital (composed of human, organizational and social capital) while examining this issue. Design/methodology/approach -Data were collected using a questionnaire survey approach from 164 firms in the People's Republic of China. The paper used analyses based on structural equation modeling to measure the main constructs and test the hypothesized relationships among the variables. Findings -The results indicate that HPWSs contribute to both the incremental and radical innovative capabilities of organizations. In addition, intellectual capital mediates the relationships between HPWSs and different types of innovative capabilities. Specifically, organizational and social capital mediate the relationship between HPWSs and incremental innovative capability, whereas social capital mediates the relationship between HPWSs and radical innovative capability. Originality/value -The study supports and expands on the strategic human resource management (SHRM) literature and knowledge-based view of the firm in terms of whether, why and how HPWSs can develop a competitive advantage on the basis of innovation.

Intellectual capital drivers of product and managerial innovation in high‐tech and low‐tech firms

“…On the contrary, internal relationships seem irrelevant for product/ service innovation in both high-and low-tech firms. This contrasts with the widely held assumption that internal networks enhance innovation (Carmona-Lavado et al, 2010;Wang and Chen, 2013); thus, practice does not always carry out the relationship between internal relational capital and innovation.…”

“…In addition, structural capital contributes significantly to innovation by providing knowledge codified and stored in databases, written procedures and information systems, as well as state‐of‐the‐art processes and technology for integrating different work processes (Menor et al, ; Wu et al, ; Wang and Chen, ). Therefore, the next hypothesis is suggested:…”

“…In addition, structural capital contributes significantly to innovation by providing knowledge codified and stored in databases, written procedures and information systems, as well as state-of-the-art processes and technology for integrating different work processes (Menor et al, 2007;Wu et al, 2007;Wang and Chen, 2013). Therefore, the next hypothesis is suggested: H2: Structural capital positively affects: (a) Product/service innovation in both (i) high-tech and (ii) low-tech firms; and (b) Managerial innovation in both (i) high-tech and (ii) low-tech firms.…”

Individual Innovation Competence: A Systematic Review and Future Research Agenda

“…Process management skills are needed in the collaborative knowledge-creation process (Chatenier et al, 2010;Nielsen, 2015) to plan (Montani et al, 2014), manage (Chatenier et al, 2010;Chell & Athayde, 2011;Nielsen, 2015), make decisions (Wang & Shuai, 2013;Waychal et al, 2011) and efficiently research and develop (Arvanitis & Stucki, 2012) in innovation processes. Management skills are decision-making skills (Wang & Shuai, 2013;Waychal et al, 2011) and leadership skills (Chell & Athayde, 2011) used in innovation processes or projects.…”

“…Management skills are decision-making skills (Wang & Shuai, 2013;Waychal et al, 2011) and leadership skills (Chell & Athayde, 2011) used in innovation processes or projects.…”