Knowledge-enhancing HR practices and sustainable competitive advantage: the mediating role of intellectual capital in knowledge-based firms

Abstract

Purpose

The purpose of this paper is to examine the relationship between knowledge-enhancing HR practices, intellectual capital and sustainable competitive advantage in knowledge-based firms.

Design/methodology/approach

A quantitative approach was used to conduct the present study. The respondents were sampled from knowledge-based firms in Iran. Overall, 320 managers in 157 firms were selected using convenience sampling. A structural equation model was employed for testing the hypotheses.

Findings

The study confirmed that knowledge-enhancing human resource (HR) practices established a very strong connection with intellectual capital. The results further disclosed a positive relationship between intellectual capital and firms' competitive advantage. A mediated relationship between knowledge-enhancing HR practices and firms' competitive advantage through intellectual capital was also affirmed.

Research limitations/implications

The study was conducted in knowledge-based firms in Iran, which limits the generalizability of the research findings. Therefore, future studies should be carried out with samples from other contexts. Moreover, as the study was cross-sectional, the causal relationships could not be inferred directly.

Practical implications

The paper underscored the importance of intellectual capital in improving knowledge-enhancing HR practices and firms' competitive advantage. It suggests to human resource managers to make the organizational arrangements to design knowledge-enhancing HR practices, thereby developing the intellectual capital that brings competitive advantage to knowledge-based firms.

Originality/value

The results of this study contribute to advance research on the intellectual capital literature by trying to explain how intellectual capital as a mediator variable can influence the relationship between knowledge-enhancing HR practices and sustainable competitive advantage.

Citation

Ghlichlee, B., Mohammadkhani, E. and Hatami, A. (2024), "Knowledge-enhancing HR practices and sustainable competitive advantage: the mediating role of intellectual capital in knowledge-based firms", Journal of Intellectual Capital, Vol. 25 No. 2/3, pp. 275-296. https://doi.org/10.1108/JIC-05-2023-0120