Examining the performance outcome of intellectual capital: a parallel mediation analysis

Abstract

Purpose: The current knowledge economy views firm competitive advantage from the strategic management of knowledge resources. Therefore, rooted in the resource-base view theory, this paper empirically investigated how organizational ambidexterity and innovative leadership behaviour mediate the relationship between intellectual capital (IC) and firm performance among small- and medium-scale enterprises (SMEs) in Ghana. Design/methodology/approach: Using purposive sampling, cross-sectional survey data was obtained from 244 SMEs in Ghana. Structural equation modelling was used in testing for the hypothesized relationships. Findings: Findings show that IC has a significant positive effect on firm performance. Additionally, innovative leadership behaviour and organizational ambidexterity have a parallel mediating effect on the relationship between IC and performance. Practical implications: The findings of the study have exposed managers of SMEs in Ghana to develop unique behavioural and organizational resources that facilitate competitive edge through strategic utilization of IC, leadership innovation and ambidexterity to produce superior performance. Originality/value: This study is a pioneering one that uniquely investigated how innovative leadership behaviour and organizational ambidexterity play a parallel mediating role in the IC–performance nexus in a less-industrialized economy.