HOW INNOVATION SPEED AND QUALITY MEDIATE THE ASSOCIATION BETWEEN INTELLECTUAL CAPITAL AND FIRM PERFORMANCE OF THE PHARMACEUTICAL INDUSTRY PAKISTAN

Abstract

In this study, we focused on intellectual capital, innovation speed, innovation quality, organizational culture and organizational performance of the Pharma industry Lahore Pakistan. Unlike previous studies, this study introduced organizational culture as a moderator and innovation speed & quality as a mediator. This model is based on the view of intellectual capital and innovation literature. We used structural equation modeling (SEM) to observe data from 300 managerial level employees of the Pharmaceutical industry. The result of our study indicates the significant impact of two components of intellectual capital namely human capital and relational capital, with organizational performance, while structural capital has a non-significant impact on organizational performance. Innovation speed & quality partially mediates the influence of structural and relational capitals on organization performance, while human capital is not mediated. Organizational culture does not moderate this relationship. This is the first study that finds out the influence of intellectual capital on organizational performance through the mediating role of innovation speed & quality and moderating role of organizational culture. Our study contributes to the literature of human resource management (HRM) and it makes the manger able to manage their human resource management (HRM) strategies to promote intellectual capital while stressing on innovation and performances.