From Knowledge to Growth: How Intellectual Capital Drives Technological Innovation and Firm Performance in Pakistan's Manufacturing Sector

Abstract

The research study aims to evaluate the impact of Intellectual Capital (comprising Human, Relational, and Structural Capital) on firm performance in the textile industry of Pakistan, with Technological Innovation acting as a mediator. Data was collected from 308 mid and top-management employees across 36 textile companies in all four provinces of Pakistan. Using Partial Structural Equation Modeling, the study finds that Intellectual Capital positively affects firm performance both directly and indirectly. Additionally, Technological Innovation enhances the relationship between Intellectual Capital components and firm performance. The research emphasizes the need for organizations to invest in Intellectual Capital to improve performance and growth, while also suggesting future studies in other sectors and using different research methodologies.

Keywords: Intellectual capital, Technological Innovation, Firm Performance, Manufacturing Sector, Textile industry, Pakistan