The Influence of Intellectual Capital on Product, Process and Administration Innovation in the SMEs Context.
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Published:
2018-10-04
Keywords:
SMEs, Intellectual Capital, Innovation, Australia
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Abstract
There are insufficient studies that investigate the connection between human, structural and relational capital and organizational innovation in Australian SMEs in the literature. Various SMEs industries, in Australia were adapted from Business Longitudinal Database (BLD) from the Australian Bureau of Statistics (ABS). This cross-sectional study shows that relational and human capitals are positive and significant towards process innovation while relational capital is the only predictor for product innovation. The results also show that human, structural and relational capitals were the most significant predictor for administration innovation. The findings show that relational capital has the most significant relationship between the three components of intellectual capital towards innovation in Australia SMEs. SME managers acknowledged the importance in collaboration towards achieving innovation performance in their firm. In order for SMEs to be a competitive advantage, managers should focus to improve their networking and collaboration with external parties, so that the whole innovation (product, process and administration innovation) can be achieve.
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The Influence of Intellectual Capital on Product, Process and Administration Innovation in the SMEs Context. (2018). Journal of Management Info, 5(3), 1-7. https://doi.org/10.31580/jmi.v5i3.79
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Dost, M., Dost, M., Badir, Y. F., Badir, Y. F., Ali, Z., Ali, Z., Tariq, A. & Tariq, A. 2016. The impact of intellectual capital on innovation generation and adoption. Journal of Intellectual Capital, 17 (4), 675-695.
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Gao, F., Li, M. & Nakamori, Y. 2003. Critical systems thinking as a way to manage knowledge. Systems Research and Behavioral Science, 20 (1), 3-19.
Grant, R. M. 1996. Toward a knowledge-based theory of the firm. Strategic Management Journal, 17 (Special Issue), 109-122.
Gronum, S., Verreynne, M. L. & Kastelle, T. 2012. The role of networks in small and medium-sized enterprise innovation and firm performance. Journal Of Small Business Management, 50 (2), 257-282.
Gulati, R., Nohria, N. & Zaheer, A. 2006. Strategic networks. Strategic Management Journal, 21 (3), 203-215.
Guthrie, J. & Petty, R. 2000. Intellectual capital: Australian annual reporting practices. Journal Of Intellectual Capital, 1 (3), 241-251.
Guthrie, J., Petty, R. & Ricceri, F. 2006. The voluntary reporting of intellectual capital: comparing evidence from Hong Kong and Australia. Journal Of Intellectual Capital, 7 (2), 254-271.
Herrmann, A., Gassmann, O. & Eisert, U. 2007. An empirical study of the antecedents for radical product innovations and capabilities for transformation. Journal Of Engineering And Technology Management, 24 (1–2), 92-120.
Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. 2010. Strategic management: concepts and cases: competitiveness and globalization, Mason, OH, South-Western Cengage Learning.
Hsu, I. C. & Sabherwal, R. 2011. From intellectual capital to firm performance: the mediating role of knowledge management capabilities. Engineering Management, IEEE Transactions 58 (4), 626-642.
Hsu, Y.-H. & Fang, W. 2009. Intellectual capital and new product development performance: the mediating role of organizational learning capability. Technological Forecasting And Social Change, 76 (5), 664-677.
Huang, C. J. & Liu, C. J. 2005. Exploration for the relationship between innovation, IT and performance. Journal Of Intellectual Capital, 6 (2), 237-252.
Hudson, M., Smart, A. & Bourne, M. 2001. Theory and practice in SME performance measurement systems. International Journal Of Operations & Production Management, 21 (8), 1096-1115.
Ilker Murat, A. & Birdogan, B. 2011. Antecedents and performance impacts of product versus process innovation: empirical evidence from SMEs located in Turkish science and technology parks. European Journal Of Innovation Management, 14 (2), 172-206.
Jardón, C. M. & Martos, M. S. 2012. Intellectual capital as competitive advantage in emerging clusters in Latin America. Journal Of Intellectual Capital, 13 (4), 462-481.
Keupp, M. M., Palmié, M. & Gassmann, O. 2011. The strategic management of innovation: a systematic review and paths for future research. International Journal Of Management Reviews, no-no.
Khan, Y. K. 2014. Does Intellectual Capital Matter for Organisational Innovation and Firm Performance in Australian Small and Medium Enterprises? , University of South Australia.
Khan, Y. K. Impact Of Structural Capital On Innovation In The Australian Smes. Future Academy, 2016 Universiti Teknologi MARA Shah Alam.
Khan, Y. K. & Kamaruddin, L. M. 2016 The Longitudinal Study Of The Effect Of Human Capital On Organisational Innovation In Australian Smes. Asean Entrepreneurship Journal, 2 (2), 59.
Khan, Y. K., Kamaruddin, L. M. & Buyung, S. Z. 2017. The Effects of Structural Capital on Organisational Innovation in Australian SMEs. Advanced Science Letters, 23 (9), 8462-8465.
Kianto, A., Hurmelinna-Laukkanen, P. & Ritala, P. 2010. Intellectual capital in service-and product-oriented companies. Journal of Intellectual Capital, 11 (3), 305-325.
Kim, D.-Y. & Kumar, V. 2009. A framework for prioritization of intellectual capital indicators in R&D. Journal Of Intellectual Capital, 10 (2), 277-293.
Klein, B., Crawford, R. G. & Alchian, A. A. 1978. Vertical integration, appropriable rents, and the competitive contracting process. Journal of Law And Economics, 21 (2), 297-326.
Kong, E. 2010. Innovation processes in social enterprises: an IC perspective. Journal Of Intellectual Capital, (2), 158-178.
Kostova, T. & Roth, K. 2003. Social capital in multinational corporations and a micro-macro model of its formation. The Academy Of Management Review, 28 (2), 297-317.
Leenders, M. A. & Voermans, C. A. 2007. Beating the odds in the innovation arena: The role of market and technology signals classification and noise. Industrial Marketing Management, 36 (4), 420-429.
Leitner, K.-H. 2011. The effect of intellectual capital on product innovativeness in SMEs. International Journal Of Technology Management, 53 (1), 1-18.
Love, J. H. & Roper, S. 2001. Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants. Research Policy, 30 (4), 643-661.
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