Fourth Industrial Review (4차산업연구)

Korea Fourth Industrial Association (한국4차산업학회)
권호 표지
DOI QR코드

DOI QR Code

Intellectual Capital and Innovation Capability: A Strategy for Achieving Competitive Advantage

  • Received : 2022.02.15
  • Accepted : 2022.05.24
  • Published : 2022.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - The ability to meet the high demand for education in Nigeria is lacking, making the region remain backwards in education. Given this reason, the study investigates the role of innovation capability in the relationship between intellectual capital and competitive advantage in tertiary institutions in Nigeria. Research design, data, and methodology - The study is cross-sectional research, a total of 427 questionnaires were administered to respondents. The study distributed its questionnaire across 12 faculties at the University of Ibadan using a random sampling technique. Data were analyzed using ADANCO 2.1.1. Result - The study reveals that human capital, structural capital, relational capital, and innovation capability positively affect competitive advantage. Innovation capability mediates the relationship between human capital and relational capital. However, structural capital was not mediated by innovation capability. Conclusion - The study concludes that intellectual capitals and innovation capability are crucial to maintaining a competitive advantage over their peers. Achieving more significant success in the variables mentioned earlier will help Nigeria's tertiary institutions compete locally and internationally.

Keywords

References

  1. Aljuboori, Z. M., Singh, H., Haddad, H., Al-ramahi, N. M., & Ali, M. A. (2022). Intellectual capital and firm performance correlation: the mediation role of innovation capability in Malaysian manufacturing SMEs perspective. Sustainability, 14(154), 1-27. https://doi.org/10.1108/SAMPJ-07-2021-0268
  2. Alsharah, A. M. T. (2017). Intellectual capital impact on competitive advantage achievement in Jordanian financial companies. Global Journal of Human Resource Management, 5(9), 1-3. https://doi.org/10.11648/j.jhrm.20170501.11
  3. Altarawneh, I. (2017). Effect of intellectual capital on competitive advantage in the Jordanian pharmaceutical companies. European Journal of Business and Management, 9(5), 39-53.
  4. Alqershi, N. (2019). Innovation capabilities as a source of inspiration: towards a sustainable competitive advantage in Yemeni manufacturing industry. International Journal of Knowledge Management and Practices, 7(1), 1-6.
  5. Amit, R., & Shoemaker, P. (1993). Strategic assets and organizational rents. Strategic Management Journal, 14(1)33-47. https://doi.org/10.1002/smj.4250140105
  6. Anderson, C. (2010). Presenting and evaluating qualitative research. American Journal of Pharmaceutical Education, 74(8),141-148. https://doi.org/10.5688/aj7408141
  7. Anning-Dorson, T. (2018). Innovation and competitive advantage creation: the role of organizational leadership in service firms from emerging markets. International Marketing Review. 34(4), 580-600. https://doi.org/10.1108/IMR-11-2015-0262
  8. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
  9. Bontis, N. (2004). National intellectual capital index: a United Nations initiative for the Arab region. Journal of Intellectual Capital, 5(1), 13-39. https://doi.org/10.1108/14691930410512905
  10. Brem, A., Maier, M., & Wimschneider, C. (2016). Competitive advantage through innovation: the case of Nespresso. European Journal of Innovation Management, 19(1), 133-148. https://doi.org/10.1108/EJIM-05-2014-0055
  11. Breznik, L., & Hisrich, R. D. (2014). Dynamic capabilities vs . innovation capability: are they related? Journal of Small Business and Enterprise Development, 21(3), 368-384. https://doi.org/10.1108/JSBED-02-2014-0018
  12. Canh, N. T., Liem, N. T., & Thu, P. A. (2019). The impact of innovation on the firm performance and corporate social responsibility of vietnamese manufacturing firms. Journal of Sustainability, 11(3666), 1-14.
  13. Chahal, H., & Bakshi, P. (2014). Effect of intellectual capital on competitive advantage and business performance: Role of innovation and learning culture. International Journal of Learning and Intellectual Capital, 11(1), 51-70.
  14. Chen, Y. S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271-286. https://doi.org/10.1007/s10551-006-9349-1
  15. Kuo, S. Y., Lin, P. C., & Lu, C. S. (2017). The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping. Transportation Research Part A: Policy and Practice, 95(3), 356-371. https://doi.org/10.1016/j.tra.2016.11.015
  16. Chi, T., Kilduff, P., & Gargeya, V. (2009). Alignment between business environment characteristics, competitive priorities, supply chain structures, and firm business performance. International Journal of Productivity and Performance Management, 58(7), 645-669. https://doi.org/10.1108/17410400910989467
  17. Chin, W. W. (1998). The partial least squares approach for structural equation modelling. In Macoulides, G. A. (Eds.) Modern methods for business research (pp. 295-336), Mahwah, NJ: Lawrence Erlbaum Associates.
  18. Collis, D. J. & Montgomery, C. A. (1995). Competing on resources: strategy in the 1990s. Harvard Business Review, 73(4), 118-28.
  19. Darvas, P., Gao, S., Shen, Y., & Bawany, B. (2017). Sharing Higher Education's Promise beyond the Few in Sub-Saharan Africa. World Bank Publications.
  20. Diez, J. M., Ochoa, M., L., Prieto, M. B. & Santidrian, A. (2010). Intellectual capital and value creation in Spanish firms. Journal of Intellectual Capital, 11(3), 348-367. https://doi.org/10.1108/14691931011064581
  21. Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 1(1), 1-7.
  22. Dogan, E. (2016). The effect of innovation on competitiveness. Ekonometri ve Istatistik Sayi, 24(1), 60-81.
  23. Garson, D. (2016). Partial least squares: regression & structural equation models. USA: Statistical Associates Publishing.
  24. Gogan, M. (2014). An innovative model for measuring intellectual capital. Procedia Social and Behavioral Sciences, 124, 194-199. https://doi.org/10.1016/j.sbspro.2014.02.477
  25. Gogan, M., & Draghici, A. (2013). The impact of intellectual capital on organizational performance. Procedia Social and Behavioral Sciences, 221, 194-202. https://doi.org/10.1016/j.sbspro.2016.05.106
  26. Gowthorpe, C. (2009). Wider still and wider? a critical discussion of intellectual capital recognition, measurement and control in a theoretical boundary context. Critical Perspectives on Accounting, 20(7), 823-834. https://doi.org/10.1016/j.cpa.2008.09.005
  27. Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review Spring, 33(3), 114-135. https://doi.org/10.2307/41166664
  28. Hair, J. F., Ringle, C. M. & Sarstedt, M. (2011), "PLS-SEM: indeed, a silver bullet", Journal of Marketing Theory and Practice, 19(2), 139-151. https://doi.org/10.2753/MTP1069-6679190202
  29. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 1-24.
  30. Hair, J., Black, W., Babin, B., & Anderson, R. (2014). Multivariate data analysis (7th ed.). UK: Pearson New International Edition.
  31. Halim, S. (2010). Statistical analysis on the intellectual capital statement. Journal of Intellectual Capital, 11(1), 61-73. https://doi.org/10.1108/14691931011013334
  32. Hana, U. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1), 82-96. https://doi.org/10.7441/joc.2013.01.06
  33. Henseler, J. (2017). Bridging design and behavioural research with variance-based structural equation modelling. Journal of Advertising, 46(1), 178-192. https://doi.org/10.1080/00913367.2017.1281780
  34. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8
  35. Hii, J. & Neely, A. (2000). Innovative capacity of firms: on why some firms are more innovative than others. Proceedings of the7th International Annual EurOMA Conference. Ghent.
  36. Iddris, F. (2016). Innovation capability: a systematic review and research agenda. Interdisciplinary Journal of Information, 11, 235-260.
  37. Igielski, M. (2018). The role of intellectual capital in building a competitive advantage for companies from the Baltic Sea Region in the transport, shipping and logistic industry. SHS Web of Conferences, 1015, 1-11.
  38. Ionescu, A., & Dumitru, N. R. (2015). The role of innovation in creating the company's competitive advantage. Eco forum, 4(1), 99-104.
  39. Israel G. D. (2013). Determining sample size. Journal of Business Research, 1(1), 1-5
  40. Kocoglu, I., Imamoglu, S. Z., & Ince, H. (2009). The relationship between firm intellectual capital and competitive advantage. Journal of Global Strategic Management, 3(2), 181-208. https://doi.org/10.20460/JGSM.2009318469
  41. Lawson, B. & Samson, D. (2001). Developing innovation capability in organizations: a dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377-400. https://doi.org/10.1142/S1363919601000427
  42. Lopez, J. E. N., Salazar, E. A., Castro, G. M. de, & Saez, P. L. (2006). Organizational capital as competitive advantage of the firm. Journal of Intellectual Capital, 7(3), 1-33.
  43. Madhani, P. M. (2009). Resource-based view (RBV) of Competitive Advantage: An Overview. In P. M. Madhani (Eds.), Resource Based View (RBV): Concepts and Practices, ICFAI University Press.
  44. Mubarik, M. S., Naghavi, N., & Mahmood, R. T. (2019). Intellectual capital, competitive advantage and ambidexterity liaison. Human Systems Management, 38(3), 267-277. https://doi.org/10.3233/HSM-180409
  45. Najib, H., & Nawangsari, L. C. (2021). Effect of intellectual capital on organizational sustainability with employee innovative behaviour as intervening variables in Pt. Jaya maritime services. European Journal of Business and Management Research, 6(1), 158-163.
  46. Nieves, J., & Haller, S. (2014). Building dynamic capabilities through knowledge resources. Tourism Management, 40(2), 224-232. https://doi.org/10.1016/j.tourman.2013.06.010
  47. Omerzel, D. G., & Jurdana, D. S. (2016). The influence of intellectual capital on innovativeness and growth in tourism SMEs: empirical evidence from Slovenia and Croatia. Economic Research-Ekonomska Istrazivanja, 9664, 1-16.
  48. Qassas, K., & Areiqat, A. (2021). Management Intellectual Capital and its Role in Achieving Competitive Advantages at Jordanian Private Universities. International Journal of Higher Education, 10(2), 92-107. https://doi.org/10.5430/ijhe.v10n2p92
  49. Ramos, M. (2003). De la contabilidad de los recursos humanos al capital intelectual y la gestion del cono- cimiento: una ampliacion necesaria. Revista De Direccion, Organizacion Y Administracion De Empresas, 29, 134-144.
  50. Sadalia, I., Irawati, N., & Isdiana, S. (2017). The influence of intellectual capital on competitive advantage on universities in Medan city. Advances in Economics, Business and Management Research, 46(1), 599-602.
  51. Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & Knowledge, 5(4), 260-265. https://doi.org/10.1016/j.jik.2019.11.002
  52. Savitri, E., & Syahza, A. (2019). Effect Of human capital and competitive strategies against the financial performance of small and medium enterprises. International Journal Of Scientific & Technology Research, 8(4), 86-92.
  53. Sydler, R., Haefliger, S., Pruksa, R. (2013). Measuring intellectual capital with financial figures: can we predict firm profitability? European Management Journal, 32(2), 244-259. https://doi.org/10.1016/j.emj.2013.01.008
  54. Teece, D. & Pisano, G. (1994). The dynamic capabilities of firms: an introduction. Industrial and Corporate Change, 3(3), 537-556. https://doi.org/10.1093/icc/3.3.537-a
  55. Teece, D., Pisano, G. & Shuen, A. (1997). Dynamics capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
  56. Tidd, J. & Bessant, J. R. (2020). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons, Hoboken, NJ.
  57. Wernerfelt, B., (1984), A resource-based view of the firm. Strategic Management Journal, 1(2), 171-180. https://doi.org/10.1002/smj.4250050207
  58. Yahya, N. A., Arshad, R., Kamaluddin, A., & Rahman, R. A. (2019). Green intellectual capital and firm competitive advantage: evidence from Malaysian manufacturing firms. The Journal of Social Sciences Research, 5(2), 463-471.
  59. Yildiz, S., Meydan, C., & Guner, M. (2014). Measurement of intellectual capital components through activity reports of companies. Procedia - Social and Behavioral Sciences, 109(1), 614-621. https://doi.org/10.1016/j.sbspro.2013.12.516
  60. Yunita, W., & Prastiwi, D. (2021). Effect of intellectual capital on firm value. International Journal of Economics, Business and Management Research, 5(6), 1-12.
  61. Zainurossalamia, S., Setyadi, D., Hudayah, S., & Rusmilawati. (2016). The Effect of Innovation on Firm Performance and Competitive Advantage. European Journal of Business and Management, 8(29), 113-120.