The Interplay of Intellectual Capital, Corporate Responsible Innovation and Ethical Organizational Culture in Firms

This study emphasizes a significant gap in the responsible innovation (RI) literature by driving the attention from macro-level governance to firm-level implementation. The research proposes and tests the construct of corporate responsible innovation (CRI) as a strategic capability, operationalized through three dimensions of “anticipation, reflexivity, and responsiveness”, with stakeholder inclusion embedded all over. Intellectual capital (IC) is considered the unique resource and antecedent of CRI; ethical organizational culture (EOC) functions as the moderator, whereas CRI is proposed to influence competitive advantage (CA) and firm performance. A two-wave, time-lagged survey design was utilized to gather data from 192 technology firms in Malaysia. The hypothesized model, integrating the “resource-based view and dynamic capabilities theory”, was analyzed using “structural equation modeling” (SEM) to test both direct and moderated relationships. The analysis reveals that intellectual capital (IC) plays a pivotal role in fostering CRI, which boosts competitive advantage. Moreover, the firm's intellectual capital, when coupled with a higher EOC, catalyzes CRI. Furthermore, the CA derived from CRI leads to improved firm performance. The findings offer actionable insights for managers and policymakers. For practitioners, the study underscores that investing in “human, structural, and relational capital” is essential but insufficient; cultivating a strong ethical culture is critical to unlocking the potential of these knowledge resources for RI. For policymakers, the proposed model offers a framework to support and assess RI initiatives, particularly in emerging economies.