Exploring the effect of intellectual capital management on innovativeness in an R&D institute

The literature that empirically investigates the relationship between intellectual capital management and innovativeness in R&D institutions is scarce. In addition, 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. This 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 human, structural and relational capital positively affect innovativeness in an R&D institute. Moreover, it is hypothesized 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 by means of a questionnaire measuring intellectual capital management through human, structural and relational capital components, as well as innovativeness and technological orientation. Findings confirm significant direct effects of structural and relational capital on innovativeness, as well as 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.