APPRAISING THE IMPACT OF RELATIONAL CAPITAL ON INNOVATION CAPABILITY OF HIGH-TECH ENTERPRISES IN CHINA—A PLS -SEM APPROACH
Purpose – This study aims to appraise the impact of relational capital (RC) on the innovation capability (IC) of High-tech enterprises in China. It also examines the role of Knowledge integration as a mediating factor in enhancing IC. Design/methodology/approach – The study employs a quantitative research design, collecting data from 308 key executives of High-tech enterprises in China. Analyses are conducted using Smart-partial least square (PLS) version 4.1.0.3, incorporating confirmatory factor analysis and PLS relational equation modeling. Findings – The RC factor directly influences the enterprises' IC. Additionally, knowledge integration partially mediates the relationship between RC and IC. The impact of knowledge integration on IC is found to be more significant compared to the direct effect of RC on IC. Practical implications – Management teams in the High-tech industry should emphasize the role of RC as a key component in fostering innovation. RC represents a strategic asset in today's rapidly evolving technological landRCape. Managers must understand the implications of enhancing relational capital to develop strategies that bolster innovation capabilities and address disparities in knowledge integration processes. Originality/value – This study specifically addresses the linkage between RC, IC, and knowledge integration. It contributes to the existing theories of intellectual capital by exploring the complementary effects of RC and IC, with knowledge integration serving as a positive partial mediator. Achieving robust relational capital is crucial for boosting innovation and maintaining a competitive edge in the market.
Knowledge Integration, Relational Capital, Innovation Capability, High-Tech Enterprises, Smart PLS.