The Mediating Role of Organizational Agility in the Relationship between Intellectual Capital and Innovation Performance in IT Firms
Keywords:
Dynamic Capabilities, PLS-SEM, IT Firms, Innovation Performance, Organizational Agility, Relational Capital, Structural Capital, Human Capital, Intellectual CapitalAbstract
Purpose: The purpose of this study is to examine the mediating effect of organizational agility (OA) on the relationship between intellectual capital (IC) and innovation performance (IP) in information technology (IT) firms. Based on the Resource Based View (RBV) and Dynamic Capabilities Theory, the study examines the joint effect of human capital, structural capital and relational capital on innovation outcomes, both directly and indirectly through the enabling role of organizational agility.
Design/Methodology/Approach: A quantitative cross-sectional survey design was employed. The data were collected from 387 senior managers and knowledge workers from IT firms in emerging and developed countries. The proposed conceptual model was tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS 4.0. Measurement validity was examined through confirmatory factor analysis (CFA), and mediation was assessed using bootstrapping procedures with 5000 resample.
Findings: The findings show that all three dimensions of intellectual capital (human, structural and relational) have a positive and significant impact on innovation performance. Importantly, organizational agility plays a significant mediating role in these relationships, especially the relationships from human capital to innovation performance and structural capital to innovation performance. The R2 for organizational agility is 0.61 and for innovation performance is 0.74 and this is considered as high predictive power.
Originality/Value: The paper is a novel contribution as it places organizational agility as a strategic bridge connecting intellectual resources and innovation outputs in the IT sector, which has been under-investigated. The findings provide practical guidance for IT executives seeking to use knowledge assets to drive competitive innovation.
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