Proceedings of the 8th International Conference on Intellectual ...

Irene Y.H. Fan and Rongbin W.B. Lee
Figure 7: (a) direct causation; (b) circular causation (c) reverse circular causation
4. Discussion and conclusion
In this paper, we have presented a study <strong>of</strong> intellectual capital and innovation performance with an
R&D firm in Hong Kong. The results indicate that <strong>the</strong> organization had high Intrinsic Motivations (KW),
Innovative Culture (OC) and Transformational Leadership (TL). Internal Social Network (ISN) rated
<strong>the</strong> lowest among <strong>the</strong> six. The highest three dimensions relate to knowledge creation where <strong>the</strong> lower
three knowledge capturing and sharing. However, Figure 8 shows that although <strong>the</strong> organization’s
perceived knowledge creation capability were strong, <strong>the</strong>y did not contribute to <strong>the</strong> performance <strong>of</strong>
innovation as high as <strong>the</strong> knowledge sharing elements. This confirms <strong>the</strong> PLS results that knowledge
sharing has a larger contribution on innovation performance than knowledge creation in direct causal
model.
Figure 8: IC impact to innovation
The respondents <strong>of</strong> <strong>the</strong> survey considered <strong>the</strong>y were in a good innovative environment, had
transformational leaders, and had confidence in <strong>the</strong>ir own innovative capability; yet appraised poor
innovation performance. It is important for management to examine <strong>the</strong> organization and networking
strategy to eliminate hindrances. On <strong>the</strong> o<strong>the</strong>r hand, although <strong>the</strong>se high knowledge creating
attributes (self-motivated knowledge workers, transformational leaders and innovation supportive
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