HARNESSING INTELLECTUAL CAPITAL FOR INNOVATION: THE MODERATING EFFECT OF DIGITAL TRANSFORMATION IN MANUFACTURING INDUSTRIES

This study explores the interplay between intellectual capital (IC), digital transformation (DT), and innovation in Chinese manufacturing firms, emphasizing the moderating role of DT. Utilizing data from Shenzhen Stock Exchange-listed firms from 2013 to 2023, the research employs Ordinary Least Squares (OLS) and Partial Least Squares (PLS) regression models to test the hypotheses. The findings reveal that DT significantly enhances the positive effect of IC on innovation. The study underscores the importance of fostering IC through human, structural, and relational capital and leveraging DT to maximize innovative outcomes. These insights are particularly relevant for policymakers and business leaders aiming to boost innovation in the knowledge economy. The results advocate for regulatory frameworks and incentives that support innovation driven by IC and DT, highlighting the substantial economic benefits these elements can bring. This research contributes to a deeper understanding of how IC and DT interact to drive innovation, offering valuable implications for technology management, entrepreneurship, and economic policy.