Exploring the Effect of Intellectual Capital Management on Innovativeness in a R&D Institute



The literature that empirically investigates the relationship between intellectual capital management and innovativeness in R&D institutions is scarce. Moreover, no sources have been found to extend the analysis to include the technological orientation as a strategic approach to developing innovative capabilities. This study builds on the theoretical premises of the intellectual capital-based view of the firm and the dynamic capabilities view. The paper addresses a research gap by setting out to study the impact of intellectual capital management on innovativeness in an R&D institute while also considering the relationship with technological orientation. It is proposed that intellectual capital management, through its components of human, structural and relational capital, positively affects innovativeness in an R&D institute. Moreover, it is hypothesised that human capital and innovativeness positively affect innovativeness in an R&D institute. The research employs PLS-SEM analysis on data collected from a sample of N=61 employees of an R&D institute. Data has been acquired using a questionnaire measuring intellectual capital management through human, structural and relational capital components as well as innovativeness and technological orientation. Findings confirm the significant direct effects of structural and relational capital on innovativeness and the positive direct effect of human capital and innovativeness on technological orientation. This research represents an original contribution to the academic literature by bringing new evidence concerning the relationships between intellectual capital management, innovativeness, and technological orientation in an R&D institute in Eastern Europe.


Al-Ansari, Y., Altalib, M., & Sardoh, M. (2013). Technology Orientation, Innovation and Business Performance: A Study of Dubai SMEs. The International Technology Management Review, 3(1), 1-11. http://dx.doi.org/10.2991/itmr.2013.3.1.1

Andreeva, T., & Garanina, T. (2016). Do all elements of intellectual capital matter for organisational performance? Evidence from the Russian context. Journal of Intellectual Capital, 17(2), 397-412. https://doi.org/10.1108/JIC-07-2015-0062

Andriessen, D. (2004). IC valuation and measurement: classifying the state of the art. Journal of Intellectual Capital, 5(2), 230-242. http://dx.doi.org/10.1108/14691930410533669

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108

Benitez, J., Henseler, J., Castillo, A., & Schuberth, F. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information & Management, 57(2), 103168. https://doi.org/10.1016/j.im.2019.05.003

Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63-76. http://dx.doi.org/10.1108/00251749810204142

Buenechea-Elberdin, M., Saenz, J., & Kianto, A. (2018). Knowledge management strategies, Intellectual Capital, and innovation performance: a comparison between high- and low-tech firms, Journal of Knowledge Management, 22(8), 1757-1781. http://dx.doi.org/10.1108/JKM-04-2017-0150

Cabello Medina, C., Carmona Lavado, A., Cuevas Rodríguez, G., & Pérez-Luño, A. (2011). Do best and worst innovative companies differ in terms of intellectual capital, knowledge and radicalness? African Journal of Business Management, 5(28), 11450-11466. http://dx.doi.org/10.5897/AJBM11.600

Cassol, A., Reis Gonçalo, C., & Lima Ruas, R. (2016). Redefining the Relationship between Intellectual Capital and Innovation: The Mediating Role of Absorptive Capacity. Brazilian Administration Review, 13(4). http://dx.doi.org/10.1590/1807-7692bar2016150067

Damanpour, F. (1991). Organisational innovation: a meta-analysis of effects of determinants, and moderators. Academy of Management Journal, 34(3), 555–590. https://doi.org/10.2307/256406

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting & Social Change, 173, 121092. https://doi.org/10.1016/j.techfore.2021.121092

Delgado-Verde, M., Martín de Castro, G., & Amores-Salvadó, J. (2016). Intellectual capital and radical innovation: Exploring the quadratic effects in technology-based manufacturing firms. Technovation, 54, 35–47. https://doi.org/10.1016/j.technovation.2016.02.002

Dinu, E. (2022). A systematic review of the literature on intellectual capital management, technology and innovation. Ekonomicko-manazerske spektrum, 16(1), 58-75. dx.doi.org/10.26552/ems.2022.1.1-11

Dost, M., Badir, Y. F., Ali, Z., & Tariq, A. (2016). The impact of intellectual capital on innovation generation and adoption. Journal of Intellectual Capital, 17(4), 675–695. https://doi.org/10.1108/JIC‐04‐2016‐0047

Dumay, J., & Garanina, T. (2013). Intellectual capital research: a critical examination of the third stage. Journal of Intellectual Capital, 14(1), 10-25. https://doi.org/10.1108/JIC-04-2016-0047

Edvinsson, L. (1997). Developing intellectual capital at Skandia. Long Range Planning, 30(3), 366-373. https://doi.org/10.1016/S0024-6301(97)90248-X

Edvinsson, L. (2013). IC 21: reflections from 21 years of IC practice and theory. Journal of Intellectual Capital, 14(1), 163-172. https://doi.org/10.1108/14691931311289075

Edvinsson, L., & Malone, M. S. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding its Hidden Brainpower (1st ed.). Harper Business.

Edvinsson, L., & Sullivan, P. (1996). Developing a model for managing intellectual capital, European Management Journal, 14(4), 356-364. http://dx.doi.org/10.1016/0263-2373(96)00022-9

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10-11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11%3C1105::AID-SMJ133%3E3.0.CO;2-E

European Commission. (2006). RICARDIS: Reporting Intellectual Capital to Augment Research, Development and Innovation in SMEs. Office for Official Publications of the European Communities. Luxemburg. https://op.europa.eu/en/publication-detail/-/publication/60cbf27c-5552-429f-a077-44135a97cc27/language-en

European Commission Eurostat Glossary. https://ec.europa.eu/eurostat/statistics-explained/index.php

Garcia, R., & Calantone, R. (2002). A Critical Look at Technological Innovation Typology and Innovativeness Terminology: a Literature Review. The Journal of Product Innovation Management, 19(2), 110–132. https://doi.org/10.1016/S0737-6782(01)00132-1

Garcia-Perez, A., Ghio, A., Occhipinti, Z., & Verona, R. (2020). Knowledge management and intellectual capital in knowledge-based organisations: a review and theoretical perspectives, Journal of Knowledge Management, 24(7), 1719-1754. https://doi.org/10.1108/JKM-12-2019-0703

Gatignon, H., Tushman, M. L., Smith, W., & Anderson, P. (2002). A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type and Characteristics, Management Science, 48(9), ABI/INFORM Global, 1103-1122. https://doi.org/10.1287/mnsc.48.9.1103.174

Gatignon, H., & Xuereb, J. M. (1997). Strategic orientation of the firm new product performance. Journal of Marketing Research, 34(1), 77-90. https://doi.org/10.1177%2F002224379703400107

Gomezelj Omerzel, D. G., & Smolčić Jurdana, D. (2016). The influence of intellectual capital on innovativeness and growth in tourism SMEs: empirical evidence from Slovenia and Croatia, Economic Research-Ekonomska Istraživanja, 29(1), 1075-1090. https://doi.org/10.1080/1331677X.2016.1211946

Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(Winter Special Issue), 109–122. https://doi.org/10.1002/smj.4250171110

Heffner, M., & Sharif, N. (2008). Knowledge fusion for technological innovation in organisations. Journal of Knowledge Management, 12(2), 79–93. https://doi.org/10.1108/13673270810859532

Inkinen, H. (2015). Review of empirical research on intellectual capital and firm performance, Journal of Intellectual Capital, 16(3), 518-565. http://dx.doi.org/10.1108/JIC-01-2015-0002

Kianto, A. (2007). What do we really mean by dynamic intellectual capital? International Journal of Learning and Intellectual Capital, 4(4), 342-356. https://doi.org/10.1504/IJLIC.2007.016332

Kianto, A., Ritala, P., Spender, J. C., & Vanhala, M. (2014). The interaction of intellectual capital assets and knowledge management practices in organisational value creation. Journal of Intellectual capital, 15(3), 362-375. http://dx.doi.org/10.1108/JIC-05-2014-0059

Kipkirong Tarus, D., & Kiptanui Sitienei, E. (2015). Intellectual capital and innovativeness in software development firms: the moderating role of firm size. Journal of African Business, 16(1-2), 48-65. https://doi.org/10.1080/15228916.2015.1061284

Kucharska, W. (2021). Leadership, culture, intellectual capital and knowledge processes for organisational innovativeness across industries: the case of Poland. Journal of Intellectual Capital, 22(7), 121-141. https://doi.org/10.1108/JIC-02-2021-0047

Leitner, K.-H. (2011). The effect of intellectual capital on product innovativeness in SMEs. International Journal of Technology Management, 53(1), 1–18. http://dx.doi.org/10.1111/radm.12271

Li, Y., Song, Y., Wang, J., & Li, C. (2019). Intellectual Capital, Knowledge Sharing, and Innovation Performance: Evidence from the Chinese Construction Industry, Sustainability, 11(9), 2713. https://doi.org/10.3390/su11092713

López-Nicólas, C., & Meroño-Cerdán, A. L. (2011). Strategic knowledge management, innovation and performance. International Journal of Information Management, 31(6), 502-509. http://dx.doi.org/10.1016/j.ijinfomgt.2011.02.003

Martín de Castro, G. M., Delgado-Verde, M., López-Sáez, P., & Navas-López, J. (2011). Towards “An Intellectual Capital-Based View of the Firm”: Origins and Nature. Journal of Business Ethics, 98(4), 649–662. https://doi.org/10.1007/s10551-010-0644-5

Martin de Castro, G. M., Delgado-Verde, M., Amores-Salvadó, J., & Navas-López, J. E. (2013). Linking human, technological, and relational assets to technological innovation: exploring a new approach. Knowledge Management Research & Practice, 11(1), 123-132. https://doi.org/10.1057/kmrp.2013.8

Masa’deh, R., Al-Henzab, J., Tarhini, A., & Obeidat B. Y. (2018). The associations among market orientation, technology orientation, entrepreneurial orientation and organisational performance. Benchmarking: An International Journal, 25(8), 3117-3142. https://doi.org/10.1108/BIJ-02-2017-0024

McDowell, W. C., Peake, W. O., Coder, L., & Harris, M. L. (2018). Building small firm performance through intellectual capital development: Exploring innovation as the “black box”. Journal of Business Research, 88(C), 321–327. https://doi.org/10.1016/j.jbusres.2018.01.025

MERITUM. (2002). Project Report. https://cordis.europa.eu/docs/publications/7078/70781341-6_en.pdf

Mouritsen, J., Bukh, P. N., Larsen, H. T., & Johansen, M. R. (2002). Developing and managing knowledge through intellectual capital statements, Journal of Intellectual Capital, 3(1), 10-29. https://doi.org/10.1108/14691930210412818

Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital and the organisational advantage. Academy of Management Review, 23(2), 242-266. https://doi.org/10.5465/amr.1998.533225

Nazari, J. A., & Herremans, I. M. (2007). Extended VAIC model: measuring intellectual capital components. Journal of Intellectual Capital, 8(4), 595-609. https://doi.org/10.1108/14691930710830774

Nielsen, C. (2019). From innovation performance to business performance. Conceptualising a framework and research agenda, Meditari Accountancy Research, 27(1), 2-16. 10.1108/MEDAR-03-2018-0318

Nonaka, I., & Takeuchi, H. (1995). The Knowledge-Creating Company. Oxford University Press.

OECD. (2015). Data Driven Innovation. Big Data for Growth and Well Being. OECD Publishing, Paris. https://www.oecd.org/sti/data-driven-innovation-9789264229358-en.htm

Palazzi, F., Sgrò, F., Ciambotti, M., & Bontis, N. (2020). Technological intensity as a moderating variable for the intellectual capital–performance relationship. Knowledge Process Management, 27(1), 3–14. https://doi.org/10.1002/kpm.1617

Petty, R., & Guthrie, J. (2000). Intellectual capital literature review. Measurement, reporting and management. Journal of Intellectual Capital, 1(2), 155-176. https://doi.org/10.1108/14691930010348731

Reed, K. K., Lubatkin, M., & Srinivasan, N. (2006). Proposing and Testing an Intellectual Capital-Based View of the Firm. Journal of Management Studies, 43(4), 867–893. https://doi-org.am.e-nformation.ro/10.1111/j.1467-6486.2006.00614.x

Rehman, S. U., Bresciani, S., Ashfaq, K., & Alam, G. M. (2021). Intellectual capital, knowledge management and competitive advantage: a resource orchestration perspective. Journal of Knowledge Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JKM-06-2021-0453

Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH. http://www.smartpls.com

Santos-Rodrigues H., Figueroa Dorrego P., & Fernandez-Jardon C. M. (2011). The main intellectual capital components that are relevant to the product, process and management firm innovativeness, International Journal of Transitions and Innovation Systems, 1(3), 271-301. https://doi.org/10.1504/11.42661

Sanz-Valle, R., Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Perez-Caballero, L. (2011). Linking organisational learning with technical innovation and organisational culture, Journal of Knowledge Management, 15(6), 997-1015. https://doi.org/10.1108/13673271111179334

Sarstedt, M, Hair, J. F. Pick, M, Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology & Marketing, 39(5), 1035–1064. https://doi.org/10.1002/mar.21640

Stewart, T. A. (1997). Intellectual Capital. The New Wealth of Organisations. Doubleday/Currency.

Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities, Academy of Management Journal, 48(3), 450-463. https://doi.org/10.5465/amj.2005.17407911

Sveiby, K. E. (1997). The New Organisational Wealth: Managing and Measuring Knowledge-Based Assets. Berret-Koehler.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509–533. https://doi.org/10.1093/ICC%2F3.3.537-A

Toivonen, M., Smedlund, A., & Järvenpää, E. (2007). The Impacts of Information Technology on the Stock and Flow of a Firm’s Intellectual Capital. In L. A. Joia (Ed.), Strategies for Information Technology and Intellectual Capital. Challenges and Opportunities (pp. 111-125). Information Science Reference.

Youndt, M. A, Subramaniam, M., & Snell, S. A. (2004). Intellectual Capital Profiles: An Examination of Investments and Returns. Journal of Management Studies, 41(2), 335-361. https://doi.org/10.1111/j.1467-6486.2004.00435.x




How to Cite

DINU, E. (2022). Exploring the Effect of Intellectual Capital Management on Innovativeness in a R&D Institute. Management Dynamics in the Knowledge Economy, 10(3), 225–238. Retrieved from https://www.managementdynamics.ro/index.php/journal/article/view/490