Conclusion
Categorizing companies into four groups with high/low IC and KMP profiles exposed statistically significant group differences in terms of their innovation and market performance. The comparison of the four profiles demonstrated that knowledge-based issues show up on a company’s bottom line, as the firms strong both in overall IC and KMP outperformed the firms with low overall IC and low KMP, on both market and innovation performance measures. Peculiarly, companies with a high level of IC but low usage of KMP were found to be as innovative as those companies with high overall IC and KMP.
This paper is among the first attempts to merge the IC and KM approaches to find out which configurations could yield organizational benefits in terms of innovation and market performance outcomes. While it represents one of the first incremental steps toward constructing a comprehensive understanding of knowledge-based firm performance and value creation, it is laden with limitations. For example, this paper utilized rather rough average measure scores for constructing the IC/KMP profiles for the firms. In future studies, a more fine-grained assessment of different configurations of specific elements of IC and KMP should be built. That approach could bring about valuable managerial implications for which exact IC and KMP elements should the firms aim to combine to create competitive advantage. Second, to enable contrasting of the profiles, the IC, and KMP constructs were aggregated in a simple, explorative manner (i.e. as dichotomous high/low variable pairs). This approach left unaddressed the nature of the IC/KMP pairing, which might be described in terms of mediation or moderation types of relationships (see Kianto et al., 2014).