Intellectual capital and innovation in higher education institutions: the mediating role of knowledge management and technology usefulness

The study aims to evaluate the impact of intellectual capital on the innovation performance of faculty members in higher education institutions. Additionally, it investigates whether knowledge management and technology usefulness mediate these relationships. The research employs a multiple indicator multiple cause model to analyze the data collected from faculty members across various higher education institutions in South India. The study uses a cross-sectional design and the sampling method used is “snowball sampling,” and the data were analyzed to explore the influence of intellectual capital components on innovation outcomes. The results reveal that structural and human capital efficiency has the most substantial and consistent positive impact, significantly enhancing both knowledge management and technology usefulness, which, in turn, positively influence both process innovation and product innovation. Although relational capital efficiency positively affects knowledge management, technology usefulness, and product innovation, its impact on process innovation is not statistically significant. The study provides theoretical insights into the resource-based view and dynamic capabilities theories, demonstrating how intellectual capital components drive innovation.