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Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

Author

Listed:
  • Jian Xu

    (School of Management, Qingdao Agricultural University, Qingdao 266109, China)

  • Yue Shang

    (Business College, Yantai Nanshan University, Yantai 265713, China)

  • Weizhen Yu

    (School of Management, Zhejiang Shuren University, Hangzhou 310015, China
    Zhejiang Modern Service Industry Research Center, Hangzhou 310015, China)

  • Feng Liu

    (Korea University Business School, Korea University, Seoul 02841, Korea)

Abstract

Intellectual capital (IC) is considered to be a main driver of organizational success in the knowledge economy. This study examines the impacts of three IC components, including human capital (HC), structural capital (SC), and relational capital (RC), on technological innovation and firm performance. Data are collected from 1112 manufacturing listed companies in China during 2013–17. Using partial least squares structural equation modeling (PLS-SEM), the results show that HC and SC exert a positive impact on firm performance while RC has a negative impact; SC has a positive influence on technological innovation while HC has a negative influence; technological innovation can enhance the firm’s performance. In addition, technological innovation partially mediates the relationship between SC and firm performance. This study will bridge the gap in research by investigating the impacts of IC components on technological innovation and firm performance in developing countries.

Suggested Citation

  • Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5328-:d:271134
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    3. Salman Ali & Guihua Li & Ping Yang & Kramat Hussain & Yousaf Latif, 2020. "Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-26, September.
    4. Defang Ma & Liangwei Li & Yuxi Song & Mengkai Wang & Qiaowen Han, 2023. "Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation," Sustainability, MDPI, vol. 15(19), pages 1-16, September.
    5. Guangchun Jin & Jian Xu, 2022. "Does Intellectual Capital Affect Financial Leverage of Chinese Agricultural Companies? Exploring the Role of Firm Profitability," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    6. Xin Long Xu & Hsing Hung Chen & Rong Rong Zhang, 2020. "The Impact of Intellectual Capital Efficiency on Corporate Sustainable Growth-Evidence from Smart Agriculture in China," Agriculture, MDPI, vol. 10(6), pages 1-15, June.
    7. Keonhyeong Lee & Liyuan Wang, 2023. "Chinese High-Tech Export Performance: Effects of Intellectual Capital Mediated by Dynamic and Risk Management Capabilities," SAGE Open, , vol. 13(1), pages 21582440231, February.
    8. Xin Long Xu & Jianping Li & Dengsheng Wu & Xi Zhang, 2021. "The intellectual capital efficiency and corporate sustainable growth nexus: comparison from agriculture, tourism and renewable energy sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16038-16056, November.
    9. Andrés Camacho, 2020. "The role of science-oriented workers on innovation: the case of the accommodation industry in Colombia," Documentos de Trabajo UEC 19547, Universidad Externado de Colombia.
    10. Yizhou Chu & Maomao Chi & Weijun Wang & Bo Luo, 2019. "The Impact of Information Technology Capabilities of Manufacturing Enterprises on Innovation Performance: Evidences from SEM and fsQCA," Sustainability, MDPI, vol. 11(21), pages 1-17, October.

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