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Mediating role of dynamic capabilities on the relationship between intellectual capital and performance: A hierarchical component model perspective in PLS-SEM path modeling

Aminu, Mohammed Ibrahim and Mahmood, Rosli (2015) Mediating role of dynamic capabilities on the relationship between intellectual capital and performance: A hierarchical component model perspective in PLS-SEM path modeling. Research Journal of Business Management, 9 (3). pp. 443-456. ISSN 1819-1932

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Abstract

The strategy of accumulating valuable assets guided by the firm’s intellectual right is often not enough to support a significant performance in a rapidly changing environment.Hence, in such an environment, superior performance relies upon the ability of a firm to integrate, build and reconfigure those resources, the process of which is termed as dynamic capabilities.Hence, the purpose of this study is to investigate the mediating role of dynamic capabilities on the relationship between intellectual capital and manufacturing firm performance in a turbulent business setting.The data was gathered from 124 manufacturing enterprises in Nigeria and analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM).The analyzed data supported all the hypothesized relationships of the study.Hence, the study found that there is positive relationships between all the dimensions of intellectual capital and dynamic capabilities and also dynamic capabilities mediate the relationship between intellectual capital and performance.Consequently, this study concluded that managers need to deploy not only valuable resources but also dynamic capabilities by re configuring their existing resources to conceive of and implement difficult to replicate value adding strategies.Finally, the study outlined some limitations that opened the avenues for future research.

Item Type: Article
Uncontrolled Keywords: Intellectual capital, dynamic capabilities, hierarchical component modeling, small firms
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Business Management
Depositing User: Prof. Dr. Rosli Mahmood
Date Deposited: 17 Dec 2015 02:48
Last Modified: 12 Apr 2016 07:11
URI: https://repo.uum.edu.my/id/eprint/16415

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