Skip to main content
SpringerLink
Log in

Intellectual Capital and Competitive Advantage in the Globalization Context

An Empirical Analysis of creative industries in China Creative industries in China

  • Chapter
  • First Online:
The China Information Technology Handbook

  • 999 Accesses

Abstract

This chapter is to investigate and to test empirically the association between a firm’s intellectual capital (IC) and its competitive advantage in the globalization context. This study first identified IC sub-components as drivers believed to be important in enhancing competitive advantage on the basis of the in-depth interviews with firms. Next, the study’s insights are combined with those available in the relevant literatures to have developed the hypotheses. These hypotheses are examined using data collected from 168 Chinese creative enterprises by means of “on-site” survey. Finally, the conclusion comes out with a discussion of managerial implications and suggestions for future research. After definitions are clearly developed for leading elements of IC, results from statistical analysis revealed that sub-components of IC have almost positive direct relationships with a firm’s competitive advantage. These findings are consistent with resource-based view propositions in the IC literature indicating that intellectual capital is a valuable, non-substitutable, and inimitable strategic resource and with similar propositions in knowledge-based theory concerning knowledge-based resources and capabilities. However, control variables including external environment and firm size have significantly negative relationships with a company’s competitive advantage. These results suggest that an effort to enhance firm’s competitiveness by investing in IC is important in the globalization context.This research helps not only managers investigate and identify pertinent IC configurations but also directors pay careful attention to managing organizational “soft assets” - IC to obtain sustainable competitive advantage in the fast and furious international competition.The authors believe that most knowledge development efforts in IC and CIs have focused on Western economies and companies; considering its size, rapid growth rate, and market reforms, China has emerged as an important new context for CIs development; current understanding of the factors associated with IC management successes in China remains limited. So this paper addresses this knowledge gap, proposes a clear study framework and uses mixed methods for CIs in china to guide future research.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Amit, R. and Shoemaker, P. (1993), “Strategic assets and organizational rent,” Strategic Management Journal, Vol. 14, No. 1, pp. 33-46.

    Article  Google Scholar 

  • Bagozzi, R. P., and Yi, Y. (1988), “On the evaluation of structural equation models”, Academy of Marketing Science, Vol. 16, No. 1, pp. 76-94.

    Article  Google Scholar 

  • Bagozzi, R. P., Yi, Youjae and Phillips, Lynn W. (1991), “Assessing construct validity in organizational research”, Administrative Science, Quarterly, Vol. 36, No. 3, pp. 421-458.

    Article  Google Scholar 

  • Barathi Kamath G, (2007), “Intellectual capital performance of the Indian banking sector”, Journal of Intellectual Capital, Vol. 8, No. 1, pp. 96-123.

    Article  Google Scholar 

  • Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No.1, pp.99-129.

    Article  Google Scholar 

  • Blair, M.M. and Wallman S.M.H. (2001), “Unseen wealth: report of the brookings task force on intangibles”, Brookings Institution Press, Washington D.C.

    Google Scholar 

  • Boisot, M.H., and Child, J. (1988), “The iron law of fiefs: bureaucratic failure and the problem of governance in the Chinese economic reforms”, Administrative Science Quarterly, 33, 507-527.

    Article  Google Scholar 

  • Bontis, N. (1996), “There’s a price on your head: Managing intellectual capital strategically”, Business Quarterly. Summer, pp. 41-47.

    Google Scholar 

  • Bontis, N.(1998), “Intellectual Capital: An exploratory study that develops measures and models”, Management Decision, Vol. 36, No. 2, pp. 63-76.

    Article  Google Scholar 

  • Bontis, N. (1999), “Managing organizational knowledge by diagnosing intellectual capital: framing and advancing the state of the field”, International Journal of Technology Management, Vol.18, Nos. 5/6/7/8, pp. 433-462.

    Article  Google Scholar 

  • Bontis, N. (2003), “National intellectual capital index: the benchmarking of Arab countries”, Journal of Intellectual Capital, Vol. 5, No. 1, pp. 13-39.

    Article  Google Scholar 

  • Bothwell, R. (1997), “Indicators of a healthy civil society”, in Burbridge, J. (Eds),Beyond Prince and Merchant: Citizen Participation and the Rise of Civil Society, Pact Publications, New York, NY, pp. 2492-262.

    Google Scholar 

  • Bourdieu, P. (1980), “Le capital social: notes provisoires”, Actes de recherches de sciences sociales, Vol. 31, pp. 2-3.

    Google Scholar 

  • Brooking, A. (1996), “Intellectual Capital”, London: International Thomson Business Press.

    Google Scholar 

  • Burr, R. and Girardi, A. (2002), “Intellectual capital: more than the interaction of competence × commitment”, Australian Journal of Management, Special Issue, Vol. 27 pp.77-87.

    Google Scholar 

  • Burt, G. (1992), “Structural Holes”, Harvard University Press, Cambridge, MA.

    Google Scholar 

  • Can˜ibano, L., Garcı´a-Ayuso, M. and Sa´nchez, M. P. (2000), “Accounting for intangibles: a literature review”, Journal of Accounting Literature, Vol. 19, pp. 102-130.

    Google Scholar 

  • Can˜ibano, L. and Sa´nchez, M.P. (2003), “Measurement, management and reporting on intangibles: state-of-the-art”, paper presented at the American Accounting Association 2003 Annual Meeting, Honolulu, HI, August 3-6.

    Google Scholar 

  • Chaminade, C. and Roberts, H. (2002), Social capital as a mechanism. connecting knowledge within and across firms, paper presented at the third European Conference on Organizational Knowledge, Learning and Capabilities, Athens, Greece, April.

    Google Scholar 

  • Child, J. and Tse, David K. (2001), “China’s transition and the implications for international business”, Journal of International Business Studies, Vol. 32, No. 1, pp. 8-21.

    Article  Google Scholar 

  • Cohen, S.S. and Fields, G. (1999), “Social capital and capital gains in Silicon Valley”, California Management Review, Vol. 41, No.2, pp. 108-30.

    Article  Google Scholar 

  • Coleman,J.S.(1988), “Social capital in the creation of human capital”, American Journal of Sociology, Vol.94, pp. 95-120.

    Article  Google Scholar 

  • Davenport, T. (1999), “Human capital”, Jossey-Bass, San Francisco, CA.

    Google Scholar 

  • Dzinkowski, R. (2000), “The measurement and management of intellectual capital: an introduction”, Management Accounting, No. February, pp. 32-36.

    Google Scholar 

  • Duysters, G. and Hagedoorn, J. (2000). Core Competencies and Company Performance in the Worldwide Computer Industry. Journal of High Technology Management Research, Vol. 11, No. 1, pp. 75-91.

    Article  Google Scholar 

  • Edvinsson, L. (1997), “Developing intellectual capital at Skandia”, Long Range Planning, Vol. 30, No. 3, pp. 266-373.

    Google Scholar 

  • Edvinsson, L. (2002), “Corporate longitude”e, Bookhouse Publishing, Stockholm.

    Google Scholar 

  • Edvinsson, L. and Malone, M. (1997), “Intellectual capital: realizing your company’s true value by finding its hidden brainpower. New York: HarperCollins.

    Google Scholar 

  • Edvinsson, L. and Sullivan P. (1996), “Developing a model for managing intellectual capital”, European Management Journal, 1996, Vol. 14, No. 4, pp. 56-68.

    Google Scholar 

  • Feldman, M. S. and Rafaeli, A. (2002), “Organizational routines as sources of connections and understandings”, Journal of Management Studies, Vol. 39, pp. 309-331.

    Article  Google Scholar 

  • Firer, S. and Williams, S. M. (2003), “Intellectual capital and traditional measures of corporate performance”, Journal of Intellectual Capital, Vol. 4, No. 3, pp. 348-360.

    Article  Google Scholar 

  • Fukayama, F. (1995), “Trust: the social virtues and the creation of prosperity”, Free Press, New York, NY.

    Google Scholar 

  • Granovetter, M. (1985), “Economic action and social structure: the problem of embeddedness”, American Journal of Sociology, Vol. 91 No.3, pp.481-510.

    Article  Google Scholar 

  • Grant, R. M., (1991), “The resource-based theory of competitive advantage: Implications for strategy formulation”, California Management Review, Vol. 33, No. 3, pp. 114-135.

    Article  Google Scholar 

  • Grant, R. M. (1996), “Toward a knowledge-based theory of the firm”, Strategic Management Journal, Vol. 17, No. 4, pp. 109-122.

    Google Scholar 

  • Hafeez, K., Zhang, Y. B. and Malak, N. (2002), “Core competence for sustainable competitive advantage: A structured methodology for identifying core competence. IEEE Transactions on Engineering Management, Vol. 49, No. 1, pp. 28-35.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., Tatham, R. L., and Black, W. C. (1998), “Multivariate data analysis (5th ed.)”, Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Hayek, F. A. (1945), “The use of knowledge in society”, American Economic Review, Vol. 35, pp. 519-530.

    Google Scholar 

  • Hofstede, G. and Bond, M.H. (1988). “The Confucius connection: From cultural roots to economic growth”, Organizational Dynamism, Vol. 6, pp. 4-21.

    Google Scholar 

  • Itami, H., & Roehl, T.W., (1987), “Mobilizing Invisible Assets”, Harvard University Press, Cambridge, Mass.

    Google Scholar 

  • Johanson, U., Mårtensson, M. and Skoog, M. (2001a), “Measuring to understand intangible performance drivers”, European Accounting Review, Vol. 10, No. 3, pp. 1-31.

    Google Scholar 

  • Johanson, U., Mårtensson, M. and Skoog, M. (2001b), “Mobilizing change through the management control of intangibles”, Accounting, Organizations and Society, Vol. 26, No. 7/8, pp. 715-733.

    Article  Google Scholar 

  • Kaplan, R. S. and Norton D. P. (1992), “The balanced scorecard: measures that drives performance”, Boston: Harvard Business Review, Vol. 70, No. 1, pp. 71-79.

    Google Scholar 

  • Kaplan, R. S. and Norton, D. P. (1996) “The balanced scorecard: translating strategy into action”, Boston: Harvard Business School Press.

    Google Scholar 

  • Lau, Chung Ming, Tse, David K. and Zhou, Nan (2002), “Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment, and Job Satisfaction”, Journal of International Business Studies, Vol. 33, No. 3, pp. 533–550.

    Article  Google Scholar 

  • Leana, C.R. and van Buren, H.J. (1999), “Organizational social capital and employment practices”, Academy of Management Review, Vol. 24, No.3, pp. 538-55.

    Google Scholar 

  • Lev, B. (2001), “Intangible Assets: Management, Measurement and Reporting”, The Brooking Institution, Washington, DC.

    Google Scholar 

  • Lippman, S. A. and Rumelt R. P. (1982), “Uncertain imitability: An analysis of interfirm differences in efficiency under competition”, The Bell Journal of Economics, 13(2), Autumn, pp. 418-438.

    Article  Google Scholar 

  • Liyanage, S., Johanson, U. and Hansson, B. (2002), “Management of knowledge and intellectual capital”, Editorial in Special Issue of Singapore Management Review, Vol. 24, No. 3, pp. 1-6.

    Google Scholar 

  • Machlup, F. (1962), “The production and distribution of knowledge in the United States,” Princeton University Press.

    Google Scholar 

  • McGaughey, S.L. (2002), “Strategic interventions in intellectual asset flows”, Academy of Management Review, Vol. 27, No. 2, pp. 248-274.

    Google Scholar 

  • Meritum, (2002), “Guidelines for managing and reporting on intangibles (Intellectual Capital Report)”, Madrid: Fundacion Airtel.

    Google Scholar 

  • Mohan, S. and Mark, A. Y. (2005), “The influence of intellectual capital on the types of innovative capabilities”, Academy of Management Journal, Vol. 48, No. 3, pp. 450-463.

    Article  Google Scholar 

  • Murphy, G. B., Trailer, J. W. and Hill, R. C. (1996), “Measuring performance in entrepreneurship research”, Journal of Business Research, Vol. 36, No. 1, pp. 15-23.

    Article  Google Scholar 

  • Nahapiet, J. and Ghoshal, S. (1998), “Social capital, intellectual capital and the organization advantage”, Academy of Management Review, Vol. 23, No.2, pp. 242-66.

    Google Scholar 

  • Nonaka, I. and Takeuchi, H. (1995), “The knowledge-creating company: How Japanese companies create the dynamics of innovation, Oxford University Press.

    Google Scholar 

  • Nonaka, I. and Teece, D.(eds), (2001), “Managing industrial knowledge: creation, transfer and utilization”, Sage Publications.

    Google Scholar 

  • Pena, I. (2002), “Intellectual capital and business start-up success”, Journal of Intellectual Capital, Vol. 3, No. 2, pp. 180- 198.

    Article  Google Scholar 

  • Petty, R. and Guthrie, J. (2000), “Capital Literature Review: Measurement, Reporting and Management,” Journal of Intellectual Capital, Vol. 1 No. 2, p.155-176.

    Article  Google Scholar 

  • Phillips, L. W. (1981), “Assessing measure error in key informant reports: A methodological note on organizational analysis in marketing”, Journal of Marketing Research, Vol.18, No. 4, pp. 395-415.

    Article  Google Scholar 

  • Porter, M. E., 1985, Competitive advantage: creating and sustaining superior performance, Free Press, New York.

    Google Scholar 

  • Reed, R. and DeFillippi, R.J. (1990), “Causal ambiguity, barriers to imitation, and sustainable competitive advantage”, Academy of Management Review, Vol.15, No.1, pp. 88-102.

    Google Scholar 

  • Roberts, H. (1999), “The bottom line of competence based management: Management accounting, control, and performance measurement”, Working paper, Norwegian School of Management, Oslo.

    Google Scholar 

  • Roberts, H. (2000), “Classification of intellectual capital”, in Grojer, J.E., Stolowy, H. (Eds), Classification of Intangibles, Groupe HEC, Jouy-en-Josas, pp.197-205.

    Google Scholar 

  • Roberts, H. and Berthling-Hansen, (2000), “Ready for Intellectual Capital? A multiple case study of 25 firms in the Norwegian graphical, newspaper and magazine industries”, Paper presented to the 23d Annual Congress of the European Accounting Association, March 2000, Munchen, Germany.

    Google Scholar 

  • Roland, B. and Groan, R. (2007), “The importance of intellectual capital reporting: Evidence and implications”, Journal of Intellectual Capital, Vol. 8, No. 1, pp.7-51.

    Article  Google Scholar 

  • Roos, J., Roos G., Edvinsson, L. and Dragonetti, N. C. (1998), “Intellectual Capital: Navigating in the New Business Landscape”, New York: New York University Press.

    Google Scholar 

  • Saint-Onge, H. (1996), “Tacit knowledge: the key to the strategic alignment of intellectual capital”, Strategy & Leadership, Vol. 2, No.March-April, pp.10-14.

    Google Scholar 

  • []Snow, C. C. and Thomas, J. B.(1994), “Field research methods in strategic management: Contributions to theory building and testing”, Journal of Management Studies, Vol. 3, No. 4, pp. 457-480.

    Article  Google Scholar 

  • Steenkamp, J.E.M. and van Trijp, H.C.M. (1991), “The use of LISREL in validating marketing constructs”, International Journal of Research in Marketing, Vol. 8, pp. 283-299.

    Article  Google Scholar 

  • Stewart, T. A. (1991), “Brainpower: how intellectual capital is becoming America’s most valuable asset”, Fortune, 3 June, pp.44–60.

    Google Scholar 

  • Stewart, T. .A. (1994), “Your company’s most valuable asset: Intellectual capital”, Fortune, New York, October 3, pp.28-33.

    Google Scholar 

  • Stewart, T. .A. (1997), “Intellectual capital: The new wealth of organizations”, Doubleday, New York, NY.

    Google Scholar 

  • Sullivan, P.H. (1998), “profiting from intellectual capital: extracting value from innovation”, New York: John Wiley & sons, Inc.

    Google Scholar 

  • Sullivan, P.H. (2000), “Value-driven intellectual capital: How to convert intangible corporate assets into market value”, New York: John Wiley&Sons, Inc.

    Google Scholar 

  • Sveiby, K.E. (1986), “The know-how company”, Kunskapsföretaget, Liber: Malmö.

    Google Scholar 

  • Sveiby, K.E (1990), “Kunskapsledning (Knowledge Management)”, Ledarskap Stockholm.

    Google Scholar 

  • Sveiby, K.E. (1997), “The new organizational wealth: managing and measuring knowledge based assets, Berrett-Koehler Publishers, San Francisco, CA.

    Google Scholar 

  • Swart, J. (2006), “Intellectual capital: Disentangling an enigmatic concept”, Journal of Intellectual Capital, Vol. 7, No. 2, pp. 136-159 .

    Article  MathSciNet  Google Scholar 

  • Tacq, J. (1997), “Multivariate analysis techniques in social science research: from problem to analysis”, London: Sage Pub.

    Google Scholar 

  • Teece, D. J. (2000),“Managing intellectual capital: organizational, strategic and policy dimensions”, Oxford University Press.

    Google Scholar 

  • Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal Vol.18, No. 7, pp. 509-533.

    Article  Google Scholar 

  • Zaltman, Gerald (1997). Rethinking Market Research: Putting People Back In. Journal of Marketing Research, Vol. 34, No. 4, pp. 424–437.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. College of Management, Zhejiang University, Zhejiang, P.R, China

    Ru-Yan Hong & Xiao-Bo Wu

Authors
  1. Ru-Yan Hong
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Xiao-Bo Wu
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Fac. Ciencias Economicas, Depto. Administración de, Universidad de Oviedo, Oviedo, 33071, Spain

    Patricia Ordóñez de Pablos

  2. Research Academic Computer Tech. Inst., Computer Engineering & Informatics Dept., University of Patras, Patras, Greece

    Miltiadis D. Lytras

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Hong, RY., Wu, XB. (2009). Intellectual Capital and Competitive Advantage in the Globalization Context. In: Ordóñez de Pablos, P., Lytras, M. (eds) The China Information Technology Handbook. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-77743-6_13

Download citation

  • DOI: https://doi.org/10.1007/978-0-387-77743-6_13

  • Published:

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-387-77742-9

  • Online ISBN: 978-0-387-77743-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation