Exploring the relationship between the knowledge creation process and intellectual capital in the pharmaceutical industry

Abstract

Purpose – This paper aims to explore the relationship between knowledge creation and intellectual capital (IC) through an empirical study in the pharmaceutical industry. In the current economy, knowledge and IC are considered as the most important organizational assets and are the key resources in gaining competitive advantage. Design/methodology/approach – This paper adopts the socialization, externalization, combination and internalization (SECI) model to examine the format of knowledge creation processes (KCP) and uses a model to demonstrate the relationship between KCP and IC and its components in the pharmaceutical industry. A valid instrument was adopted to collect the required data on KCP and and IC dimensions. Structural equation modeling was used to assess the measurement model and to test the research hypotheses using the data collected from 470 completed questionnaires. Findings – The results supported the research model and revealed that KCP has significant influence on the accumulation of human capital. The performance of human capital manifests significant impact on structural capital and relational capital. Practical limitations/implications – Given the strong association between KCP and IC, managers should define their own robust operations for knowledge creation to improve their IC accumulation. Originality/value – This research departs from the earlier research on KCP–IC by adopting the SECI model and a research model that facilitates the exploration of the relationship between KCP and IC dimensions in the pharmaceutical industry. The research results provided strong support for the KCP–IC relationship.