Business and Economics

How Does Strategic Orientation Influence Intellectual Capital through Value- Creating Activities?
Ying-Li Lin, Tzu-Yin Chen

This study develops and empirically tests a model that links alternative strategic orientations with intellectual capital (IC) by mediating the effects of value-creating activities. Field visits and interviewbased questionnaires are used to collect data. A structural equation model is used to examine Taiwanese small- and medium-sized enterprises (SMEs) in China. Empirical results show that a resource-oriented strategy indirectly affects innovation capital by capitalizing on the manufacturing process and development of local innovation centers. Finally, innovation capital contributes to customer capital. Furthermore, a cause–effect relationship exists among market-orientation strategies, value-creation activities, and IC. Market-orientation strategies affect the cultivation of human resource, development of communication channels to customers, and establishment of localized social networks. The development of communication channels to customers and the establishment of localized social networks affect human capital, which in turn influences customer capital.

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