The Discussion on Mediation of Innovation Capital toward Human Capital and Performance
A Case Study of the Industry of Integrated Circuit Design
DOI:
https://doi.org/10.14738/abr.79.7157Keywords:
Intellectual Capital, Innovation Capital, Human Capital, Mediation Effect, Enterprise Performance.Abstract
There are many studies of intellectual capital affecting enterprise performance, but no empirical research has been carried out by scholars on mediation effect of innovation capital between human capital and enterprise performance. This research selects Taiwan’s listed and OTC companies in the industry of integrated circuit design are selected as a case study and with the Panel data model verifies their correlation. It is discovered from the research result that employee value added in human capital correlates positively with enterprise performance; employee productivity in human capital has positive correlation with R&D intensity in innovation capital; employee value added in human capital shows positive correlation with R&D productivity in innovation capital. Those verify and demonstrate innovation capital is the mediator between human capital and enterprise performance.
References
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management practices and types of innovation. Journal of Intellectual Capital,
3(3): 210-222.
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Lazear, E.P., 1998. Personnel Economics for Managers, New York: John Wiley and Sons.
Lee, K. and A.V. Witteloostuijn, 1998. Human capital, social capital, and firm dissolution. Academy of Management Journal, 41 (4): 425-440.
Liebowitz, J. and K. Wright, 1999. Does Measuring Knowledge Make “Cents”? Expert System with Application, 17(2): 99-103.
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Lepak, D.P. and S.A. Snell, 1999. The human resource architecture: toward a theory of human capital allocation and development. Academy of Management Review, 24(1): 31-48.
Lynn, B.E., 2000. Intellectual Capital: Unearthing Hidden Value by Managing Intellectual Assets. Ivey Business Journal, 64(3): 48-52.
MacKinnon, D.P., J.L. Krull and C.M. Lockwood, 2000. Equivalence of the mediation, confounding and suppressioneffects. Prevention Science, 1(4): 173–181.
Meyers, P.W., 1990. Non-linear Learning in Large Technological Firms: Period Four Implies Chaos. Research Policy, 19(2): 97-115.
Nicholson, G.J. and G.C. Kiel, 2004. Breakthrough board performance:
how to harness your board’s intellectual capital. Corporate Governance,
4 (1): 5-23.
Ou, C.S., P.S. Chen, and G.F. Lee, 2004. The Business Value of Training Activities of Taiwan Information and Electronics Industries. Journal of Human resource management, 4(4): 51-72.
Roos, G., A. Bainbridge and K. Jacobsen, 2001. Intellectual capital analysis as a strategic tool. Strategy & Leadership, 29(4): 21-26.
Sânchez, P., C. Chaminade and M. Olea, 2000. Management of Intangibles - An Attempt to Build a Theory. Journal of Intellectual Capital, 1(4): 312-327.
Sáenz, J., N. Aramburu and O. Rivera, 2009. Knowledge sharing and innovation performance: A comparison between high-tech and low-tech companies. Journal of Intellectual Capital, 10 (1): 22-36.
Shrout, P.E. and N. Bolger, 2002. Mediation in Experimental and Nonexperimental Studies:New Procedures and Recommendations. Psychological Methods, 7(4): 422-445.
Snell, S.A. and J.W. Dean, 1992. Integrated manufacturing and human resource
management: a human capital perspective. Academy of Management Journal, 35(3): 467-504.
Stewart, T.A., 1991. Brainpower: how intellectual capital is becoming America’s most valuable asset, Fortune, 3: 44-60.
Stewart, T.A., 1997. Intellectual Capital: The New Wealth of Organizations. New York: Bantam Doubleday Dell Publishing Group, Inc.
Sullivan, P.J., 2000. Value-Driven Intellectual Capital: How to Convert Intangible Corporate Assets into Market Value. New York: John Wiley & Sons.
Su, W.C., Y.T. Yu and C.H. Yang, 2013. Agglomeration and Productive: Firm Level Evidence from Taiwan’s Textile Industry. Taiwan Economic Forecast and Policy, 44(1): 133-160.
Tsai, L.C., Y.F. Yang, S.J. Wu and Y.K. Huang, 2008. The Effects of Information Technology and Human Capital on R&D Spillovers. Soochow Journal of Accounting, 1(1): 53-81.
Ulrich, D., 1998. Intellectual capital = competence × commitment. Sloan Management Review, 39(2): 15-26.
Walton, R.E. and G.I. Susman, 1987. People policies for the new machines. Harvard Business Review, 65(2): 98-106.
Wang, W.Y. and C.F. Chang, 2004. The Impacts of Intellectual Capital on Performance: An Empirical Investigation of the Taiwan Semiconductor Industry. The International Journal of Accounting Studies, 39: 89-117.
Weir, C. and P. McKnigh, 2002. Internal and external governance mechanisms: their
impact on the performance of large UK public Companies. Journal of Business
Financial & Accounting, 29(5-6): 579-611.
Wu, W.Y., H.J. Tsai, K.Y. Chang and M.K. Lai, 2006. Assessment of Intellectual Capital Management in Taiwanese IC Design Companies: Using DEA and the Malmquist Productivity Index. R&D Management, 36 (5): 531-547.
Wu, H.Y., I.S. Chen, J.K. Chen and C.F. Chien, 2019.The R&D efficiency of the Taiwanese semiconductor industry. Measurement, 130: 203-213.
Amir, E. and B. Lev, 1996. Value-relevance of nonfinancial information: The wireless communications industry. Journal of Accounting and Economics, 22(1): 3-30.
Baron, R.M. and D.A. Kenny, 1986. Moderator-Mediator Variables Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6): 1173-82.
Barney, J.B. and P.M. Wright, 1998. On becoming a strategic partner- the role
of human resources in gaining competitive advantage. Human Resource
Management, 37(1): 31-46.
Bontis, N., 1998. Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36(2): 63-76.
Bontis, N. and A. Serenko, 2009. A causal model of human capital antecedents and consequents in the financial services industry. Journal of Intellectual Capital, 10(1): 53-69.
Brooking, A., 1996. Intellectual Capital: Core Assets for the Third Millennium
Enterprise. London: Thomson Business Press.
Canto, J.G.D. and I.S. Gonzalez, 1999. A Resource-based Analysis of the Factors
Determining a Firm’s R&D Activities. Research Policy, 28(8): 894-905.
Chang, S.J., W.M. Lu and C.H. Wu, 2010. The Study of the Relationship between
Intellectual Capital and Project Performance: The Empirical Study of Technology Project of Ministry of Economic Affairs. Journal of Contemporary Accounting, 11(2): 179-214.
Chiou, C.C., Y.M. Wang, C.L. Wei and T.C. Chien, 2011. The Effects of Innovation and Human Capital Investments on the Operating Efficiencies of Taiwan’s
IC Design Industry. Sun Yat-sen Management Review,19(2): 343-385.
Chen, C.J., 2004. The effects of knowledge attribute, alliance characteristics, andabsorptive capacity on knowledge transfer performance. R&D Management, 34(3): 311-321.
Chen, W.J., Y.H. Hsieh and H.L. Chen, 2013. Are Underwriters and Investors Concerned Regarding Intellectual Capital? Evidence from IPOs in Taiwan. Management Review, 32(4): 7-30.
Collins, L.M., J.W. Graham and B.P. Flaherty, 1998. An alternative framework for defining mediation. Multivariate Behavioral Research, 33: 295–312.
Darroch, J. and R. McNaughton, 2002. Examining the link between knowledge
management practices and types of innovation. Journal of Intellectual Capital,
3(3): 210-222.
De Carolis, D.M.D., 2003. Competences and limitability in the pharmaceutical industry: An analysis of their relationship with firm performance. Journal of Management, 29(1): 27-50.
Edvinsson, L. and M.S. Malone, 1997. Intellectual Capital – Realizing Your Company’s True Value by Finding its Hidden Roots. New York: Harper Business.
Finkelstein, S. D. Hambrick and B. Canella, 1996. Strategic Leadership.
New York: Oxford University Press Inc.
Forrester, R.H., 2000. Capturing learning and applying Knowledge: an investigation of the use of innovation teams in Japanese and American automotive firms. Journal of Business Research, 47(1): 35-45.
Johanson, U., M. Mårtensson and M. Skoog, 2001a. Mobilizing change through the management control of intangibles. Accounting. Organizations and Society, 26 (7/8): 715-733.
Johanson, U., M. Mårtensson and M. Skoog, 2001b. Measuring to understand intangible performance drivers. European Accounting Review, 10 (3): 407-437.
Hall, L.A. and S. Bagchi-Sen, 2002. A study of R&D, innovation, and business performance in the Canadian biotechnology industry. Technovation, 22(4): 231-244.
Haniffa, R.M. and T.E. Cook, 2002. Culture corporate governance and disclosure in
Malaysia corporations. Abacus, 38(3): 317-349.
Hauschild, S., T. Licht and W. Stein, 2001. Creating a knowledge culture.
The McKinsey Quarterly, 74 (1): 74-81.
Hejazi, R., M. Ghanbari and M. Alipour, 2016. Intellectual, Human and Structural Capital Effects on Firm Performance as Measured by Tobin's Q. Knowledge and Process Management, 23 (4): 259-273.
Horibe, F., 1999. Managing Knowledge Workers: New Skill and Attitudes to Unlock the Intellectual Capital in Your Organization. New York:John Wiley & Sons, Inc.
Hou, S.T. and M.Y. Hsu, 2013. Accumulation and Interaction of Intellectual Capitals: A Case Study of Technology-driven Service Company. Management Review, 32(4): 81-102.
Huang, S.Z., T.J. Wu and H.T. Tsai, 2016. Hysteresis Effects of R&D Expenditures and Patents on Firm Performance: An empirical study of Hsinchu Science Park in Taiwan. Filomat, 30 (15), 4265-4278.
Hung, H.H., I.H. Huang, C.H. Chang, 2011. Corporate Performance after Substantial Capital Expenditure: The Role of Growth Opportunity and Corporate Governance, NTU Management Review, 22(1): 297-326.
Huang, J.C., 2002. Human Capital Investment System, Innovation Strategy and Organisational Performance: A Test of Alternative Forms of Fit. Management Review, 22(1): 99-126.
Kalton, G., D. Kasprzyk and D. McMillen, 1998. Nonsampling Errors in Panel Surveys. New York: John Wiley & Sons, Inc.
Kaufman, B.E., 1994. The Economics of Labor Markets and Labor Relations, Chicago: The Dryden Press.
Kuo, T., 2009. The Impacts of Transferring Human Capital and Innovation Capital from Parent on Performance of Subsidiary: An Examination of Taiwanese Enterprises in China. The International Journal of Accounting Studies, 49: 95-128
Lazear, E.P., 1998. Personnel Economics for Managers, New York: John Wiley and Sons.
Lee, K. and A.V. Witteloostuijn, 1998. Human capital, social capital, and firm dissolution. Academy of Management Journal, 41 (4): 425-440.
Liebowitz, J. and K. Wright, 1999. Does Measuring Knowledge Make “Cents”? Expert System with Application, 17(2): 99-103.
Liu, J., H.W.W. Lin and C.L. Chin, 2005. Path Analysis of Value Chain of Innovation: An Emperical Study of R&D Investment. Management Review, 24(4): 29-56.
Lepak, D.P. and S.A. Snell, 1999. The human resource architecture: toward a theory of human capital allocation and development. Academy of Management Review, 24(1): 31-48.
Lynn, B.E., 2000. Intellectual Capital: Unearthing Hidden Value by Managing Intellectual Assets. Ivey Business Journal, 64(3): 48-52.
MacKinnon, D.P., J.L. Krull and C.M. Lockwood, 2000. Equivalence of the mediation, confounding and suppressioneffects. Prevention Science, 1(4): 173–181.
Meyers, P.W., 1990. Non-linear Learning in Large Technological Firms: Period Four Implies Chaos. Research Policy, 19(2): 97-115.
Nicholson, G.J. and G.C. Kiel, 2004. Breakthrough board performance:
how to harness your board’s intellectual capital. Corporate Governance,
4 (1): 5-23.
Ou, C.S., P.S. Chen, and G.F. Lee, 2004. The Business Value of Training Activities of Taiwan Information and Electronics Industries. Journal of Human resource management, 4(4): 51-72.
Roos, G., A. Bainbridge and K. Jacobsen, 2001. Intellectual capital analysis as a strategic tool. Strategy & Leadership, 29(4): 21-26.
Sânchez, P., C. Chaminade and M. Olea, 2000. Management of Intangibles - An Attempt to Build a Theory. Journal of Intellectual Capital, 1(4): 312-327.
Sáenz, J., N. Aramburu and O. Rivera, 2009. Knowledge sharing and innovation performance: A comparison between high-tech and low-tech companies. Journal of Intellectual Capital, 10 (1): 22-36.
Shrout, P.E. and N. Bolger, 2002. Mediation in Experimental and Nonexperimental Studies:New Procedures and Recommendations. Psychological Methods, 7(4): 422-445.
Snell, S.A. and J.W. Dean, 1992. Integrated manufacturing and human resource
management: a human capital perspective. Academy of Management Journal, 35(3): 467-504.
Stewart, T.A., 1991. Brainpower: how intellectual capital is becoming America’s most valuable asset, Fortune, 3: 44-60.
Stewart, T.A., 1997. Intellectual Capital: The New Wealth of Organizations. New York: Bantam Doubleday Dell Publishing Group, Inc.
Sullivan, P.J., 2000. Value-Driven Intellectual Capital: How to Convert Intangible Corporate Assets into Market Value. New York: John Wiley & Sons.
Su, W.C., Y.T. Yu and C.H. Yang, 2013. Agglomeration and Productive: Firm Level Evidence from Taiwan’s Textile Industry. Taiwan Economic Forecast and Policy, 44(1): 133-160.
Tsai, L.C., Y.F. Yang, S.J. Wu and Y.K. Huang, 2008. The Effects of Information Technology and Human Capital on R&D Spillovers. Soochow Journal of Accounting, 1(1): 53-81.
Ulrich, D., 1998. Intellectual capital = competence × commitment. Sloan Management Review, 39(2): 15-26.
Walton, R.E. and G.I. Susman, 1987. People policies for the new machines. Harvard Business Review, 65(2): 98-106.
Wang, W.Y. and C.F. Chang, 2004. The Impacts of Intellectual Capital on Performance: An Empirical Investigation of the Taiwan Semiconductor Industry. The International Journal of Accounting Studies, 39: 89-117.
Weir, C. and P. McKnigh, 2002. Internal and external governance mechanisms: their
impact on the performance of large UK public Companies. Journal of Business
Financial & Accounting, 29(5-6): 579-611.
Wu, W.Y., H.J. Tsai, K.Y. Chang and M.K. Lai, 2006. Assessment of Intellectual Capital Management in Taiwanese IC Design Companies: Using DEA and the Malmquist Productivity Index. R&D Management, 36 (5): 531-547.
Wu, H.Y., I.S. Chen, J.K. Chen and C.F. Chien, 2019.The R&D efficiency of the Taiwanese semiconductor industry. Measurement, 130: 203-213.
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Published
2019-10-08
How to Cite
Lee, Y.-C., Yang, Y.-H., & Huang, W.-T. (2019). The Discussion on Mediation of Innovation Capital toward Human Capital and Performance : A Case Study of the Industry of Integrated Circuit Design. Archives of Business Research, 7(9), 255–267. https://doi.org/10.14738/abr.79.7157
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