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Impacts of intellectual capital on process innovation and mass customisation capability: direct and mediating effects

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  • Min Zhang
  • Yinan Qi
  • Hangfei Guo

Abstract

This paper presents an empirical survey study. We propose a model to examine the individual and joint effects of the three components of intellectual capital (i.e. human, social and structural capital) on process innovation and mass customisation (MC) capability. The hypotheses are empirically tested using structural equation modelling and data collected from 645 manufacturing plants in 10 countries/regions. The results show that human and social capital are positively associated with structural capital. Human capital directly improves both process innovation and MC capability. The direct effect of social capital on MC capability and that of structural capital on process innovation is positive and significant. Moreover, process innovation is positively associated with MC capability. In addition, we find that structural capital mediates human and social capital’s effects on process innovation, and process innovation mediates human and structural capital’s effects on MC capability. This study contributes to the literature by providing insights into how human, social and structural capital jointly improve process innovation and MC capability, as well as how the different types of knowledge residing in a manufacturer affect MC capability development.

Suggested Citation

  • Min Zhang & Yinan Qi & Hangfei Guo, 2017. "Impacts of intellectual capital on process innovation and mass customisation capability: direct and mediating effects," International Journal of Production Research, Taylor & Francis Journals, vol. 55(23), pages 6971-6983, December.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:23:p:6971-6983
    DOI: 10.1080/00207543.2017.1343505
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    References listed on IDEAS

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    1. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1.
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    1. Alfaro-Ramos, Alfredo Elías & Ferreras-Méndez, José Luis, 2022. "Knowledge management and intellectual capital in the business model innovation of Costa Rican manufacturing firms," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 16(2), pages 18-33.
    2. Aisling Bonner & George Onofrei & Paul Humphreys & Michael Margey & Trevor Cadden, 2021. "Entrepreneurial versus cooperative social capital: The impact on operational performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3854-3865, December.
    3. Shao, Xiao-Feng, 2020. "What is the right production strategy for horizontally differentiated product: Standardization or mass customization?," International Journal of Production Economics, Elsevier, vol. 223(C).
    4. Young Sik Cho & Kevin Linderman, 2020. "Resource-Based Product and Process Innovation Model: Theory Development and Empirical Validation," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    5. Zuomiao Xie & Shiqi Yuan & Jinjing Zhu & Alistair Palferman, 2023. "Dynamic value sharing based on employee contribution as a competitiveness-enhancing device," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.

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