The influence of intellectual capital on absorptive capacity and product innovation

Abstract

This paper aims to investigate the influence of intellectual capital on absorptive capacity (ACAP) of firms, as well as the influence of ACAP on innovation. The theoretical argument of this thesis is based on the Resource Ba sed View, which assumes that sets of intangible assets such as intellectual capital are mobilized by firms through dynamic capabilities such as absorptive capacity, leading to results such as product innovation. Using the quantitative approach the study co vered 500 industries in southern Brazil of different sizes, sectors and technological intensities. Using the method of structural equation modeling, the examination of adjustment indexes and statistical significance confirmed the validity of all the constr ucts and model. It also served to support or refute the hypotheses of the study. Given the evidences, it can be concluded that the intellectual capital influences absorptive capacity, but the elements that compose the intellectual capital reflect different ly on the dimensions of ACAP. The capabilities of acquisition, assimilation and exploitation of knowledge are influenced more decisively by organizational capital, followed by human capital. The ability of transformation of knowledge is influenced evenly b y organizational and human capital, and more moderately by social capital. In turn, the absorptive capacity influences innovation, and each of its dimension has a different impact. Knowledge acquisition and exploitation have a more intense influence.