The impact of intellectual capital on innovation via the mediating role of knowledge management: a structural equation modelling approach

TLDR: In this article, the authors investigated the impact of knowledge management on innovation in telecommunication companies in Jordan, through the presence of a knowledge management as a mediator, and revealed that intellectual capital did have a significant impact on knowledge management and the latter on innovation.

Abstract: This study aims to investigate the impact of intellectual capital on innovation in telecommunication companies in Jordan, through the presence of knowledge management as a mediator. Data were collected using a self-administrated questionnaire from 498 employees working in three telecommunication companies in Jordan. Structural equation modelling approach based on AMOS 22.0 was used to examine the causal relationships and to test the hypotheses between the observed and latent constructs in the proposed research model. The results led to the confirmation of a mediation model as intellectual capital did not have a direct impact on innovation. The results revealed that intellectual capital did have a significant impact on knowledge management and the latter on innovation. In light of these findings, implications to both theory and practice are discussed.