The Impact of Knowledge Management Process and Intellectual Capital on Entrepreneurial Orientation and Innovation

Qi Yu; Sumaira Aslam; Majid Murad; Wang Jiatong; Nausheen Syed

doi:10.3389/fpsyg.2022.772668

The Impact of Knowledge Management Process and Intellectual Capital on Entrepreneurial Orientation and Innovation

Front Psychol. 2022 May 20:13:772668. doi: 10.3389/fpsyg.2022.772668. eCollection 2022.

Authors

Qi Yu¹, Sumaira Aslam², Majid Murad³, Wang Jiatong⁴, Nausheen Syed⁵

Affiliations

¹ School of Foreign Languages, Hebei University of Technology, Tianjin, China.
² Faisalabad Business School, National Textile University, Faisalabad, Pakistan.
³ Department of Management Sciences, Muhammad Nawaz Sharif University of Engineering and Technology, Multan, Pakistan.
⁴ College of Teacher Education, Zhejiang Normal University, Jinhua, China.
⁵ Department of Business Administration, Government College Women University, Faisalabad, Pakistan.

Abstract

Innovation is considered to be a dominant cause for sustainable business success. Knowledge management and intellectual capital are powerful tools to promote innovation in the organization. Therefore, this study aims to explore the influence of knowledge management process and intellectual capital on innovation with the mediating effect of entrepreneurial orientation and moderating role of leader education level. Data were collected from a sample of 393 IT firms listed in the Pakistan Software Houses Association and applied a partial least squares structural educational modeling (SEM) technique. The results show that the knowledge management process and intellectual capital have a positive effect on innovation. Moreover, the study confirms that entrepreneurial orientation partially mediates the relationship between knowledge management and intellectual capital on innovation. Furthermore, the moderation effect of a leader's education was confirmed for the knowledge management-innovation relationship whereas, the moderation effect of the leader's education on intellectual capital and innovation relationship was insignificant. Recommendations for practitioners and future research directions were also discussed.

Keywords: IT industry; Pakistan; entrepreneurial orientation; innovation; intellectual capital; knowledge management process.