The moderating role of social networks within the radical innovation process: a multidimensionality of human capital-based analysis

Abstract

Knowledge, or intellectual capital, and innovation continue to be key areas subject to rapid change in the current environment. The complexity of the relationship between knowledge and innovation leads to the in-depth study of more specific linkages. Intellectual capital is divided into human, organisational and social capital. This paper attempts to provide empirical evidence relating to the relationship between human capital and radical innovation, along with social networks. Using data collected via a questionnaire, our hypotheses were tested empirically in a sample of 251 Spanish technology-intensive manufacturing firms. The paper provides new, empirically-based insights into the study of radical innovation by adopting a research framework which is built upon the intellectual capital-based view of the firm, based on the multidimensionality of human capital. The main results show the positive and statistically significant role of human assets in radical innovation, and, regarding a moderating role, indicate the existence of a substitution effect between one of the human capital components – experience and abilities – and social networks.