This study aims to examine the effect of intellectual capital on firm value through corporate reputation as a mediating variable. Intellectual capital is proxied by human capital, structural capital, and customer capital. Using the resource-based theory and signaling theory, this paper analyzes how the corporate reputation will be mediating intellectual capital to firm value. This study used 340 observations of companies that received an excellent category on the Indonesian Corporate Image Award (IMAC) which was listed on the Indonesia Stock Exchange in 2013 to 2017 with Partial Least Square (PLS) test processed with warpPLS version 5.0 software. This study shows that the first human capital, structural capital, customer capital, and corporate reputation have a significant effect on firm value. Second, structural capital has a significant effect on corporate reputation. Third, corporate reputation variables are able to mediate the influence of intellectual capital proxied by human capital, structural capital, and customer capital on firm value. This study is the first empirical investigation on the contribution of Intellectual Capital in generating value for corporate reputation. Furthermore, the study contributes to the literature on the link between Intellectual Capital and firm value by examining a sample of firms no yet explored in prior research and this study also uses the cost-based approach.
The present article is to examine benefits of social capital for innovation capabilities in the modern business world. First of all, the concept of social capital and its role are defined referring to a set of scientists’ interpretations on social capital and economic/ social development. This chapter allows an ingenious acknowledgement of the added-value of social capital to companies. The main patterns of innovation capabilities are revealed, followed by the methodology and research results presented. The paper emphasizes social capital as a driving factor for organizations while conducting innovations. In line with such elements of social capital as trust, social networks and norms that emerge as the driving factors within the literature review, the research, based on the Global Entrepreneurship Monitor (GEM) methodology, mainly focuses on three elements of social capital: trust, norms and networks in Lithuanian companies. The research question: how such social capital elements as trust, norms and networks help organizations to innovate sustainably.