Examining intellectual capital and competitive advantage relationship

Abstract

Purpose – The purpose of this paper is to investigate the impact of intellectual capital on competitive advantage in banking sector. Further, it also examines the role of innovation as a mediating variable and organisational learning as a moderating variable in intellectual capital and competitive advantage relationship. Design/methodology/approach – Data are collected from 144 branches of 21 public and seven private banks operating in Northern India (Jammu). Three executives (including one manager and two senior employees) from each branch are contacted purposively. Out of 576 questionnaires distributed, 339 questionnaires are returned with response rate of 62.08 per cent. Findings – The study finds that intellectual capital has direct and positive impact on the competitive advantage. It is also verified that innovation fully mediates the relationship between intellectual capital and competitive advantage. Further, the moderating effect of organisational learning on the relationship between intellectual capital and competitive advantage is also confirmed. Research limitations/implications – The study is limited to the banking sector of Jammu city only. Only three dimensions of intellectual capital are considered in the present study. Originality/value – The study represents the relationship between intellectual capital and competitive advantage in banking sector. The results extend the understanding of the role of organisational learning and innovation in creating intellectual capital and building sustainable advantages for organisations.