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

Abstract 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.