Implication of relational capital and structural capital on product innovation

Abstract

Intellectual capital is the source of innovation. Structural Capital and Relational Capital, two of the intellectual capital components, play an important role in influencing the process of product innovation. This study is based on underlying idea to evaluate the role of Structural Capital and Relational Capital in supporting innovation process. Based on a review of related literature, a conceptual framework was developed as a guideline for communicating ideas, theories and explanations. Structural Capital consists of the documentation of research and development (R&D) which included aspects such as databases, patent and procedures related to product development, while, Relational Capital composes good relationships between company and customers, suppliers, government agencies and allied partners. It is expected that Structural Capital and Relational Capital contribute to the outburst of better innovation opportunities. This aids the end product become more quality and value added so that companies can improve their business and focus on how they can become competitive.