International Journal of Academic Research in Business and Social Sciences

search-icon

The Mediating Role of Innovation on The Relationship Between Intellectual Capital and Private Universities Performance of Pakistan

Open access
Universities are the hub of knowledge creation which totally based on their intellectual resources, currently the condition of Pakistan private sector universities are facing huge trouble. Universities are lacking from all their intangibles resource which can help them in successive performance, these resources normally based on the intellectual capital which is usually considered as an intangible capital of universities. Pakistan higher education is ranked at 150th spot out of 189 countries and also far behind in research productivity as compared to the neighbour countries. Therefore, current study will focus intellectual capital as a key determinant in the successive performance of private universities performance in Pakistan with mediating role of innovation in terms of speed and quality. The current study highlighted the important flaws in higher education institutions of Pakistan and provides possible solutions in the form of intellectual capital and innovation that can enhance the performance of HEI’s. Positivist paradigm and deductive approach has been used in current study, primary data collection shall be conducted through questionnaire and the target population would be considered full time faculty members of private universities operating in Pakistan.
Akbar, H., & Khan, N. (2020). Flaws in Higher Education in Pakistan: An Appraisal. Research Journal of Social Sciences & Economics Review, 1(3), 151–160.
Albekov, A., Romanova, T., Vovchenko, N., & Epifanova, T. (2017). Study of factors which facilitate increase of effectiveness of university education. International Journal of Educational Management, 31(1), 12–20. https://doi.org/10.1108/IJEM-02-2016-0037
Alipour, M. (2012). The effect of intellectual capital on firm performance: An investigation of Iran insurance companies. Measuring Business Excellence, 16(1), 53–66. https://doi.org/10.1108/13683041211204671
Anggraini, F. (2018). Competitive advantage as mediating role of intellectual capital and university performance: An empirical study in Indonesia. International Journal of Economics and Management, 12(Special Issue 2), 351–363.
Ashraf, M. A. (2019). Exploring the potential of religious literacy in Pakistani education. Religions, 10(7). https://doi.org/10.3390/rel10070429
Awan. (2015). Relationship between Intellectual Capital and Organizational Performance: A case Study of Public Sector Universities in Southern Punjab-Pakistan. Journal of Resources Development and Management, 9(2012), 35–46. www.iiste.org
Barbosa, S., Vale, J., Vale, T. V., & Branco, C. M. (2016). Intellectual Capital and Performance in Higher Education Organizations. Proceedings of the International Conference Theory and Applications in the Knowledge Economy (TAKE) 2016, 670–681.
Barnett. (1992). Improving Higher Education: Total Quality Care. 240.
Barney. (1991). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650.
https://doi.org/10.1177/014920630102700602
Bashir, T., Khan, K., & Malik, K. (2010). The innovation landscape of Pakistan’s North West Frontier Province. Science and Public Policy, 37(3), 181–191.
https://doi.org/10.3152/030234210X497401
Bhatti, S. H., Zakariya, R., Vrontis, D., Santoro, G., & Christofi, M. (2021). High-performance work systems, innovation and knowledge sharing: An empirical analysis in the context of project-based organizations. Employee Relations, 43(2), 438–458.
https://doi.org/10.1108/ER-10-2019-0403
Bisogno, M., Dumay, J., Manes Rossi, F., & Tartaglia Polcini, P. (2018). Identifying future directions for IC research in education: a literature review. Journal of Intellectual Capital, 19(1), 10–33. https://doi.org/10.1108/JIC-10-2017-0133
Bontis. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1097/00000658-197811000-00016
Bratianu. (2015). Challenges for the University Intellectual Capital in the Knowledge Economy. Management Dynamics in the Knowledge Economy, 3(4), 609–627.
www.managementdynamics.ro
Canibano. (2002). Guidelines for managing and reporting on intangibles: Intellectual Capital Report. Directrices Para La Gestión y Difusión de Información Sobre Intangibles (Informe de Capital Intelectual), Vodafone Foundation, Madrid.
Carbonell, P., & Escudero, A. I. R. (2010). The effect of market orientation on innovation speed and new product performance. Journal of Business and Industrial Marketing, 25(7), 501–513. https://doi.org/10.1108/08858621011077736
Chatterji, Kiran, N., & Ravi. (2017). Relationship between university performance and dimensions of intellectual capital: An empirical investigation. Egitim Arastirmalari - Eurasian Journal of Educational Research, 2017(71), 215–231.
https://doi.org/10.14689/ejer.2017.71.12
Chinta, R., Kebritchi, M., & Ellias, J. (2016). A conceptual framework for evaluating higher education institutions. International Journal of Educational Management, 30(6), 989–1002. https://doi.org/10.1108/IJEM-09-2015-0120
Cricelli, L., Greco, M., Grimaldi, M., & Duenas, L. P. (2018). Intellectual capital and university performance in emerging countries: Evidence from Colombian public universities. Journal of Intellectual Capital, 19(1), 71–95. https://doi.org/10.1108/JIC-02-2017-0037
Curado, B. (2007). Managing intellectual capital: the MIC matrix. International Journal of Knowledge and Learning, 3(2–3), 316–328. https://doi.org/10.1504/ijkl.2007.015558
Economic survey of Pakistan. (2019). Pakistan Economic Survey.
https://doi.org/10.1038/479299e
Edvinsson, L., & Sullivan, P. (1996). Developing a model for managing intellectual capital. European Management Journal, 14(4), 356–364. https://doi.org/10.1016/0263-2373(96)00022-9
Elrehail, H., Emeagwali, O. L., Alsaad, A., & Alzghoul, A. (2018). The impact of Transformational and Authentic leadership on innovation in higher education: The contingent role of knowledge sharing. Telematics and Informatics, 35(1), 55–67.
https://doi.org/10.1016/j.tele.2017.09.018
Feng, Chen, C. S., Wang, C. H., & Chiang, H. C. (2012). The role of intellectual capital and university technology transfer offices in university-based technology transfer. Service Industries Journal, 32(6), 899–917. https://doi.org/10.1080/02642069.2010.545883
Fivi, A., Abdul-Hamid, Ali, M., Azlina, & Aza, M. K. (2018). The role of intellectual capital on public universities performance in Indonesia. Pertanika Journal of Social Sciences and Humanities, 26(4), 2453–2472.
Halai, N. (2013). Quality of private universities in Pakistan: An analysis of higher education commission rankings 2012. International Journal of Educational Management, 27(7), 775–786. https://doi.org/10.1108/IJEM-11-2012-0130
HEC. (2016). Ranking 2015 of Pakistani Higher Education Institutions ( HEIs ).
Hwang, W. S., Choi, H., & Shin, J. (2020). A mediating role of innovation capability between entrepreneurial competencies and competitive advantage. Technology Analysis and Strategic Management, 32(1), 1–14. https://doi.org/10.1080/09537325.2019.1632430
Iqbal, A. (2021). Innovation speed and quality in higher education institutions: the role of knowledge management enablers and knowledge sharing process. Journal of Knowledge Management, 25(9), 2334–2360. https://doi.org/10.1108/JKM-07-2020-0546
Khalique, M., Abdul, J., Shaari, N., Abu, P., & Isa, H. (2011). Intellectual capital and its major componenets. 3(1997), 343–347.
Khalique, M., Shaari, J. A. N. bin, Isa, A. H. bin M., & Samad, N. B. (2013). Impact of Intellectual Capital on the Organizational Performance of Islamic Banking Sector in Malaysia. Asian Journal of Finance & Accounting, 5(2), 75. https://doi.org/10.5296/ajfa.v5i2.4005
Kianto, A., Saenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81(July), 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
Kousar, S., Zafar, M., Batool, S. A., & Sajjad, A. (2019). The mediating role of absorptive capacity in the relationship between intellectual capital and organizational innovation in higher education institutes of Punjab, Pakistan. Pakistan Journal of Commerce and Social Science, 13(3), 656–679.
Lahiri, N. (2010). Geographic distribution of R & D activity: How does it affect innovation quality? Academy of Management Journal, 53(5), 1194–1209.
https://doi.org/10.5465/amj.2010.54533233
Leitner, K. H. (2004). Intellectual capital reporting for universities: Conceptual background and application for Austrian universities. Research Evaluation, 13(2), 129–140. https://doi.org/10.3152/147154404781776464
Lu, W. M., Wang, W. K., & Kweh, Q. L. (2014). Intellectual capital and performance in the Chinese life insurance industry. In Omega (United Kingdom) (Vol. 42, Issue 1, pp. 65–74). https://doi.org/10.1016/j.omega.2013.03.002
Malik, K., Bashir, T., & Ali, T. M. (2021). University-industry collaborations in Pakistan: current challenges and future opportunities. Foresight, 23(4), 496–508.
https://doi.org/10.1108/FS-12-2020-0133
Marr. (2003). Why do firms measure their intellectual capital? Journal of Intellectual Capital, 4(4), 441–464. https://doi.org/10.1108/14691930310504509
Matos, E., Alves, H., & Leitao, J. (2020). In search of intangible connections: intellectual capital, performance and quality of life in higher education institutions. In Higher Education. https://doi.org/10.1007/s10734-020-00653-9
Muhammad, M., Akhtar, S., Rafi, M. S., Ahmed, S., & Rauf, M. (2011). Quality in Higher Education?: Issues and Current Practices. Journal of Elementary Education, 21(1), 43–51.
Mumtaz, Abbas, S., & Qaisar. (2014). An empirical investigation of intellectual capital affecting the performance: A case of Private Universities in Pakistan. World Applied Sciences Journal, 32(7), 1460–1467. https://doi.org/10.5829/idosi.wasj.2014.32.07.1251
Murtaza, L. (2021). Higher Education in Pakistan: Challenges, Opportunities, Suggestions. Education Quarterly Reviews, 4(2), 213–219.
https://doi.org/10.31014/aior.1993.04.02.211
Nisar, A. (2019). Challenges for Higher Education System in Pakistan. In Pakistan & Gulf Economist. https://www.pakistaneconomist.com/2019/01/21/challenges-for-higher-education-system-in-pakistan/
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. In Borsa Istanbul Review (Vol. 17, Issue 3, pp. 190–198). https://doi.org/10.1016/j.bir.2016.03.001
Pedro, E., Leitao, J., & Alves, H. (2019). The intellectual capital of higher education institutions: Operationalizing measurement through a strategic prospective lens. Journal of Intellectual Capital, 20(3), 355–381. https://doi.org/10.1108/JIC-07-2018-0117
Pulungan, Rahmawany, D., Koto, & Murviana. (2017). The Role of Intellectual Capital Performance of Universities in Medan in the. 207–212.
Rabbi, F. (2015). The impact of knowledge management infrastructure on organizational performance in SMES. International Journal of Human Resource & Industrial Research, 4(2), 26–31. www.arseam.com
Ramezan, M. (2011). Intellectual capital and organizational organic structure in knowledge society: How are these concepts related? International Journal of Information Management, 31(1), 88–95. https://doi.org/10.1016/j.ijinfomgt.2010.10.004
Raza, S. (2021). Industry-academia linkages_ challenges and opportunities (Part-I).
Rehman & Iqbal, A. (2020). Nexus of knowledge-oriented leadership, knowledge management, innovation and organizational performance in higher education. Business Process Management Journal, 26(6), 1731–1758. https://doi.org/10.1108/BPMJ-07-2019-0274
Saeed, Hasani, Kaveh, & Vahid, D. (2020). Investigating the influence of knowledge management on organizational innovation in higher educational institutions. Kybernetes, 49(2), 442–459. https://doi.org/10.1108/K-09-2018-0492
Saeed, R., Sami, A., Lodhi, R. N., & Iqbal, A. (2013). Intellectual capital and organizational performance: An empirical study in telecom sector of pakistan. Middle East Journal of Scientific Research, 18(4), 517–523.
https://doi.org/10.5829/idosi.mejsr.2013.18.4.11716
Saengchai, Sakapas, Sutduean, & Jutamat. (2019). The impact of intellectual capital on performance of Universities in Thailand: The mediating role of entrepreneur orientation. International Journal of Innovation, Creativity and Change, 6(10), 381–401.
Salman, S., Kausar, T., & Furqan, M. (2018). Factors Affecting Research Productivity in Private Universities of Lahore?: a Discriminant Analysis. Pakistan Business Review, 1045–1064.
Sanchez, & Paloma, M. E. S. (2006). Intellectual capital in universities: Improving transparency and internal management. Journal of Intellectual Capital, 7(4), 529–548. https://doi.org/10.1108/14691930610709158
Secundo, G., Dumay, J., Schiuma, G., & Passiante, G. (2016). Managing intellectual capital through a collective intelligence approach: An integrated framework for universities. Journal of Intellectual Capital, 17(2), 298–319. https://doi.org/10.1108/JIC-05-2015-0046
Sharafi, & Abbaspour. (2013). Relationship between intellectual capital and function in universities and higher education institutes. Edu-Str-Med-Sci YR - 2013, 6(2), 75–81. http://edcbmj.ir/article-1-368-fa.html
Shehzad, U., Fareed, Z., Zulfiqar, B., Latif, & Shahid, F. S. H. (2014). The Impact of Intellectual Capital on the Performance of Universities. European Journal of Contemporary Education, 10(4), 273–280. https://doi.org/10.13187/ejced.2014.10.273
Stewart. (1997). intellectual capital: the new wealth of organization. Journal of Allergy and Clinical Immunology, 130(2), 556. http://dx.doi.org/10.1016/j.jaci.2012.05.050
Tanveer. (2020).Rankings and Performance in Higher Education?: Pakistan ’ s Perspective DigitalCommons @ University of Nebraska - Lincoln Library Philosophy and Practice ( e-journal ) Rankings and Performance in Higher Education?: Pakistan ’ s Perspective. January.
Thakkar, S. S. J. (2016). A comparative assessment of the performance of select higher education institutes in India. 24(1), 7–94.
Todericiu, R., & Stanit, A. (2016). Universities intellectual capital. Management and Economics, 4(84), 348–356.
Tseng, C. Y., & Wu, L. Y. (2007). Innovation quality in the automobile industry: Measurement indicators and performance implications. International Journal of Technology Management, 37(1–2), 162–177. https://doi.org/10.1504/IJTM.2007.011809
Ullah, M. H., Ajmal, M., & Rahman, F. (2011). Analysis of quality indicators of higher education in Pakistan. Bulletin of Education & Research, 27, 1–16.
http://www.intconfhighered.org/FINAL Ullah full text.
pdf%5Cnhttp://www.sciedu.ca/journal/index.php/ijhe/article/view/4206%5Cnhttp://link.springer.com/referenceworkentry/10.1007/978-1-4419-1153-7_419%5Cn%22http://dx.doi.org/10.1007/s12564-016-9414-0%5Cnht
Wang. (2010). Performance measurement in universities. European Journal of Operational Research, 38(3), 358–368. https://doi.org/10.1016/0377-2217(89)90012-X
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2018). Intellectual capital and firm performance: the mediating role of innovation speed and quality. International Journal of Human Resource Management, 32(6), 1222–1250.
https://doi.org/10.1080/09585192.2018.1511611
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2021). Intellectual capital and firm
performance: the mediating role of innovation speed and quality. International Journal of Human Resource Management, 32(6), 1222–1250.
https://doi.org/10.1080/09585192.2018.1511611
Wasim-ul-Rehman, Asghar, Nabila, Rehman, U., & Hafeez. (2013). Intellectual capital efficiency and financial performance of insurance sector in Pakistan: A panel data analysis. Middle East Journal of Scientific Research, 17(9), 1251–1259.
https://doi.org/10.5829/idosi.mejsr.2013.17.09.12285
Zlate, Stefania, Enache, & Cerasela. (2015). The Interdependence Between Human Capital and Organizational Performance in Higher Education. Procedia - Social and Behavioral Sciences, 180(November 2014), 136–143.
https://doi.org/10.1016/j.sbspro.2015.02.096.
In-Text Citation: (Ali et al., 2022)
To Cite this Article: Ali, Q. B., Zin, M. L. B. M., & Ismail, S. A. B. (2022). The Mediating Role of Innovation on The Relationship Between Intellectual Capital and Private Universities Performance of Pakistan. International Journal of Academic Research in Business and Social Sciences. 12(7), 1786 – 1801.