A Study of Firm’s Innovative Capacity and Performance: Assessing the significance of Intellectual Capital

Abstract

Intellectual capital is a powerful tool that may produce quantifiable commercial outcomes. In today's shifting economic environment, businesses that prioritize utilizing and investing in intellectual capital are more likely to succeed over the long haul. There is a broad and complex relationship between intellectual capital and company performance. It functions similarly to the unseen engine that drives a business's success in the knowledge-based economy of today. Businesses with a lot of intellectual capital are better positioned to innovate, especially those with high levels of structural capital (patents, processes) and human capital (skilled personnel). Operations become more efficient when intellectual capital is managed well, especially when information is shared and organizational learning takes place. This study examines the relationship between intellectual capital and Indian businesses' success. This study aims to investigate the relationship between intellectual capital and corporate performance. The nature of the research investigation is quantitative. The association between company success and intellectual capital was examined using primary data. The results suggest that a company's total financial success and creative potential are significantly influenced by its intellectual capital, particularly its human, structural, and rational capital.