Proceedings of the 3rd European Conference on Intellectual Capital

Ahmed Elsetouhi and Ibrahim Elbeltagi
Concept Description
Problematization Problematization means that focal actor defines <strong>the</strong> nature <strong>of</strong> problem and suggests <strong>the</strong>
objectives that solve it. Therefore, focal actor negotiates with o<strong>the</strong>r actors to adopt <strong>the</strong>se
objectives which become an obligatory passage point (OPP) Callon (1986).
OPP OPP relates to agreed objectives among actors. Network does not allow any actor to enter
into it except <strong>the</strong> actor that adopts network's interests (Ibid).
Interessement Interessement relates to primarily convince all actors to follow <strong>the</strong> way suggested from
focal actor to solve <strong>the</strong> problem (Ibid).
Enrollment Enrollment means that actors accepted to adopt network's goals (Duim and Marwijk 2006).
Mobilization It refers that network's actors try to attract o<strong>the</strong>r actors to share <strong>the</strong>m in sustaining <strong>the</strong>ir
network. This means that actors have loyalty toward <strong>the</strong>ir network's goals. (Rhodes 2009).
3. Conceptual framework
The current study depends on <strong>the</strong> ANT to build a conceptual framework presented in (Figure 1) for
<strong>the</strong> relationship between IC and process and product innovation as follows:
3.1 Define <strong>the</strong> actors and <strong>the</strong> network (support point stage)
Network has Material actor like SC and non-material actors named HC and CC. According to <strong>the</strong> previous
definitions, network consists <strong>of</strong> knots and links. This means that <strong>the</strong>re are interrelationships
among actors which consider as support point to translation stage First, <strong>the</strong> relationship between human
and structural capital was mutual significant positive correlation. This means that organizations
should focus not only on hiring <strong>the</strong> brightest employees but also on supporting and nurturing <strong>the</strong>ir
skills to be able to develop structural capital. Second, human capital has significantly affected on relational
(customer) capital. This refers to <strong>the</strong> qualified employees will have <strong>the</strong> ability to understand customers'
needs for maximizing <strong>the</strong>ir loyalty. Third, structural capital significantly relates to customer
capital. The organizations which adopt customer orientation build efficient organizational routines and
process that service <strong>the</strong>ir clients well. The organizations depending on knowledge from <strong>the</strong>ir own clients
become leader not a follower in its market (e.g. Bontis, 1998; Cohen and Kaimenakis, 2007; Hsu
and Fang, 2009; Chen et al., 2009). Finally, <strong>the</strong> previous results refer that <strong>the</strong>se actors work toge<strong>the</strong>r
in harmony. This paper expects that this stage called support point will sustain next stage..
3.2 Translation
Before explaining <strong>the</strong> four moments <strong>of</strong> translation, focal actor should be defined. As mentioned
above, Leadership represents a component <strong>of</strong> HC. This study focuses on leadership in top management
and separates it from HC to be become focal actor for two reasons: (1) top management is <strong>the</strong>
group <strong>of</strong> decision makers generally charged with organizational strategy and it has authority to deploy
all resources in bank. Therefore, top management has special abilities to convince o<strong>the</strong>r actors to
adopt its aim (2) top management plays an essential role in fostering innovation (e.g. West and Farr
1990; Carmen et al. 2006).
3.2.1 Problematization
In recent years, although banks have applied great innovations, many banks declared bankruptcy.
This put a lot <strong>of</strong> pressure on top management (focal actor) to identify <strong>the</strong> relevant actors or resources
which support process and product innovation. This means that focal actor has not allowed to any
actor to be a part <strong>of</strong> its network but only <strong>the</strong> actor which accept to sustain product and process innovation
.This aim is called (OPP).Many previous studies emphasize that IC (HC, SC and CC) has a
significant effect on innovation as follows:
HC and innovation
Many studies examined <strong>the</strong> effect <strong>of</strong> HC on innovation without focusing on product and process innovation.
HC has a positive influence on innovation. It plays a mediating role to support <strong>the</strong> effect <strong>of</strong> social
capital and entrepreneurial orientation on innovation (Wu et al. 2008). Human capital interacted
with social capital to positively influence radical innovation (Subramaniam and Youndt 2005). On <strong>the</strong>
o<strong>the</strong>r hand, <strong>the</strong> relationship between human capital and product innovation was empirically examined.
The results revealed that human capital has a positive influence on product innovation in manufacturing
sector (Pizarro et al. 2009).
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