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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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    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. Ahmad Suffian Mohd Zahari & Rosman Mahmood & Zuriyati Ahmad & Azzri Fazril Rosman, 2024. "Religious Practices Position in Firm Performance: A Case of the Malaysian Construction Industry," Information Management and Business Review, AMH International, vol. 16(1), pages 239-251.
    9. Nazir, Sajid & Ali, Mahmood & Saeed, Munazza & Mubarik, Muhammad Shahzad & Jalil, Qasim, 2024. "Sustainable performance and disaster management in the oil and gas industry: An intellectual capital perspective," Resources Policy, Elsevier, vol. 92(C).
    10. 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.
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