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The purpose of this paper is to analyse social capital (SC) development oriented to innovation. The relationship between high-performance work systems (HPWSs) and total quality management (TQM) philosophy is considered in this paper as an enabling factor that allows firms to accumulate SC oriented to develop radical and incremental innovation capabilities (IIC).

This paper establishes hypotheses and a model based on partial and total mediating effects of SC to develop innovation capabilities, which are focused on previous unexplored connections between HPWS and TQM and their effects on SC. The model and hypotheses are statistically tested through a partial least squares approach to structural equations models in a multi-industry sample of Spanish companies.

The study results show a system of specific human resource practices connected to SC development. Moreover, SC is found to be a mediating factor in the relationship between TQM and IIC, although the effect is not significant when radical innovation capabilities (RIC) are considered in the model. Finally, it is shown that HPWS partially mediates the relationship between TQM and SC.

This paper mainly contributes to the study of organizational context enablers for intellectual capital (IC) development from a knowledge-based view, especially when firms are seeking to build or improve innovation capabilities. As a managerial approach, HPWSs and TQM are shown as powerful tools to establish prolific contexts for SC development, especially when TQM is rightly supported by a HPWS.

This is a quantitative study that analyses, for the first time, predictive relationships between popular tools such as TQM and HPWSs to create an organizational context for SC development, considering a multi-industry sample of firms. Important implications are also drawn to help managers to create IC assets related to social interaction and network relationships.

The purpose of this study is to investigate the moderating role of knowledge management (KM) strategies in developing the effect of intellectual capital (IC) on innovation for small- and medium-sized enterprises (SMEs). Specifically, the current study explores how different interactions between IC and KM strategies lead to more powerful innovation in SMEs.

This study analyzes survey responses from 170 owners/managers of SMEs in Iran. The study uses partial least square structural equation modeling methods within Smart PLS software.

This study reveals that first IC has an excellent level of engagement with both incremental and radical types of innovation, but its engagement level with radical innovation is higher than that for incremental innovation. Second, the human capital component of IC has a direct positive impact on radical innovation although it has no significant impact on incremental innovation. Third, the personalization strategy of KM positively moderates the impact of human capital on both incremental and radical innovation.

This paper is an empirical attempt in SMEs to combine IC and KM strategies to strengthen innovation. It presents research community for SMEs of a developing country that has been investigated in a limited way compared to large firms of developed nations and provides valuable insights into further research.