Intellectual Capital and Organizational Culture : Two Major Determinants of Innovativeness in Manufacturing Firms

In this paper, a comprehensive model of innovation determinants is analysed based on empirical data gathered from 184 manufacturing firms located in the Northern Marmara region in Turkey. As opposed to the studies that establish the relationship with a limited set of antecedents and innovativeness, this study allows us to investigate how significant is an antecedent compared to others. Such knowledge is invaluable for the decision makers in order to manage their innovation strategies and provides a guideline for effective allocation of their limited resources to be more innovative. The analysis reveals that among all possible determinants considered, the intellectual capital has the highest impact on innovativeness followed by the organizational culture. Path analyses for both of these major innovation determinants are investigated in detail. Some managerial implications are suggested