The impacts of intellectual capital, innovation and organizational strategy on firm performance

The concept of intellectual capital was popularized by Tom Stewart in 1991 when Fortune Magazine published his article "Brainpower: How intellectual capital is becoming Americas' most valuable asset". It can be described as the difference between a firm's market value and the cost of replacing its assets. Today innovation is considered as a necessity for every company due to the terminating competition in market, globalization and rapid development of technology. Innovation is defined as "implementing new ideas that create value". Strategy is the outcome of decisions made to guide an organization with respect to environment, structure and processes that influence its firm performance. The organizational literature that improved business performance requires an organizational structure, information systems and management style that are related to a specific-firm strategy. Firm performance can be measured in a variety of ways, including financial performance, product performance and market performance. The purpose of this study is to research the relationships between intellectual capital, innovation, organizational strategy and firm performance. The main contribution of this study is to investigate the effects of intellectual capital, innovation and organizational strategy on performance of firms operating in Antalya, Turkey. (C) 2014 The Authors. Published by Elsevier Ltd