The interplay between entrepreneurial risk-taking and intellectual capital: effects on innovation novelty in high-tech firms

Abstract

Purpose: The paper aims to analyse the effects of interplay between entrepreneurial risk-taking behaviour and each of the three components of intellectual capital (IC) on the degree of novelty of new products. Design/methodology/approach: This article studies one of the most recognized dimensions of entrepreneurial orientation (EO) along with knowledge-based assets owned by high-tech firms. In this way, entrepreneurial risk-taking is analysed considering the companies’ IC endowment, as a contingent variable, to examine the achievement of a higher novelty in developing new products from firms’ OE. The empirical study was carried out on a sample of 155 Spanish knowledge-intensive firms and based on survey data gathered from two different respondents. Hierarchical regression analysis was used. Findings: Findings reveal heterogeneous effects of IC components on the relationship between entrepreneurial risk-taking and innovation novelty. While innovative culture (organizational capital) has a positive interaction with risk-taking in the influence on the degree of novelty of new products, relationships with customers (social capital) have a negative one. And, however, CEO industry experience (human capital) doesn’t have any contingent effect. Originality: This study contributes to shed light on the few empirical studies that analyse internal contingent elements in the relationship between entrepreneurial risk-taking behaviour and the novelty of product innovation in high-tech-firms. Concretely, specific manifestations of IC components are examined jointly with entrepreneurial risk-taking.