How do different business models affect intellectual capital?

Abstract

Purpose

The purpose of this paper is to investigate whether value‐creating activities and intellectual capital (IC) accumulation are affected by different business models.

Design/methodology/approach

Field visitations and interview‐based questionnaires are used for data collection. This study uses the structural equation model to examine Taiwanese original equipment manufacturers (OEMs) and original brand manufacturers (OBMs) in China.

Findings

Empirical results show that Taiwanese OEMs and OBMs adopt different combinations of value‐creating activities, which results in differences in IC accumulation. Taiwanese OEMs have engaged in manufacturing and innovation activities, and have created process and innovation capitals. By contrast, Taiwanese OBMs have developed their marketing channels, human resources, innovation centres, and social networks, and have accumulated their human, customer, process and innovation capitals.

Practical implications

Taiwanese OEMs have cultural advantages and have built productive infrastructure in China. Therefore, these enterprises should transform their business models into OBMs to enhance their market performance. Foreign investors could leverage the experiences and IC of Taiwanese enterprises to make their investments run more smoothly.

Originality/value

This paper contributes to the existing literature by investigating relationships among business models, value‐creating activities, and IC. This study also provides useful guidance for enterprises considering investing in China and for academics researching in this area.

Citation

Liang, C., Chen, T. and Lin, Y. (2013), "How do different business models affect intellectual capital?", Journal of Intellectual Capital, Vol. 14 No. 2, pp. 176-191. https://doi.org/10.1108/14691931311323832