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Intellectual capital and innovativeness in software development firms: the moderating role of firm size

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  • Daniel Kipkirong Tarus
  • Emmanuel Kiptanui Sitienei

Abstract

We examine the effect of intellectual capital on firms' innovativeness and the moderating role of firm size in software development firms in Kenya. Using moderated regression analysis, we found support for the proposition that human and social capital enhance firms' innovativeness. We did not, however, find any significant effect of organizational capital on firms' innovativeness. The results from the moderated regression suggest that the smaller the firm, the stronger the influence of intellectual capital on firms' innovativeness. The results therefore indicate that human and social capital are critical in the innovation process and so firms that neglect these capitals are unlikely to realize the potential to innovate particularly in software development firms.

Suggested Citation

  • Daniel Kipkirong Tarus & Emmanuel Kiptanui Sitienei, 2015. "Intellectual capital and innovativeness in software development firms: the moderating role of firm size," Journal of African Business, Taylor & Francis Journals, vol. 16(1-2), pages 48-65, January.
    • Handle: RePEc:taf:wjabxx:v:16:y:2015:i:1-2:p:48-65
    DOI: 10.1080/15228916.2015.1061284
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    References listed on IDEAS

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    1. Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    2. Michael King, 2012. "Is Mobile Banking Breaking the Tyranny of Distance to Bank Infrastructure? Evidence from Kenya," The Institute for International Integration Studies Discussion Paper Series iiisdp412, IIIS.
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    Cited by:

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    2. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2018. "Educational quality thresholds in the diffusion of knowledge with mobile phones for inclusive human development in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 164-172.
    3. Simplice A. Asongu & Vanessa S. Tchamyou & Paul N. Acha-Anyi, 2020. "Who Is Who in Knowledge Economy in Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 425-457, June.
    4. Tecla Kirwa & Vincent Ngeno, 2020. "Organizational Capital and Financial Performance; What is the Mediation Effect of Firm Innovation: Evidence from Insurance Firms in Kenya," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(2), pages 72-78.
    5. Buntoro Heri Prasetya & Yvone Agustine Sudibyo, 2021. "The influence of the ethic culture and intellectual capital on local government performance: Evidence from Indonesia," Technium Social Sciences Journal, Technium Science, vol. 19(1), pages 465-476, May.
    6. repec:thr:techub:10019:y:2021:i:1:p:465-476 is not listed on IDEAS
    7. Tecla Kirwa & Vincent Ngeno, 2020. "Organizational Capital and Financial Performance; What is the Mediation Effect of Firm Innovation: Evidence from Insurance Firms in Kenya," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(2), pages 90-96.
    8. Asif Khan & Sughra Bibi & Jiaying Lyu & Achille Claudio Garavelli & Pierpaolo Pontrandolfo & Maria de Angeles Perez Sanchez, 2020. "Uncovering Innovativeness in Spanish Tourism Firms: The Role of Transformational Leadership, OCB, Firm Size, and Age," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    9. Lima Nasrin Eni, 2022. "Mediating Role of Knowledge Sharing in the Nexus among Human Capital, IT Capability, Transactional Leadership and Innovation Performance: Empirical Evidence from Bangladeshi Telecommunication Sector," International Journal of Science and Business, IJSAB International, vol. 9(1), pages 1-17.
    10. Elena Dinu, 2022. "Exploring the effect of intellectual capital management on innovativeness in an R&D institute," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 4, pages 49-66.
    11. Arega Shumetie & Mulugeta Damie Watabaji, 2019. "Effect of corruption and political instability on enterprises’ innovativeness in Ethiopia: pooled data based," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-19, December.

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