#4733. How does government support promote firms intellectual capital? An empirical analysis of micro-mechanisms

August 2026publication date
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Education;
Business, Management and Accounting (all);
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Abstract:
In transitional economies, government support (GS) is considered to influence the development of the economy and industries and, consequentially, firms intellectual capital (IC). However, empirical research has yet to explore the micro-mechanisms through which GS operates. Hence, the purpose of this study is to conduct an empirical inquiry into the specific role of GS on IC, considering the mediating effect of firm operational performance (OP). Combining the institution-based theory, the resource orchestration paradigm and a dynamic perspective on IC, a new framework is constructed to evaluate the direct and indirect relationships existing among GS policies, firms operational performance and IC. (1) GS can be considered an institutional signal that boosts the attractiveness of a firm, thus enabling it to hire talent (human capital), build a wide network of relationships in the ecosystem (structural capital) and enhance its current relationships with financial service institutions and other stakeholders (relational capital). (2) This study, which considers GS an external resource, is one of the first attempts to explore how external resources influence firms IC development through institutional pressures and mechanisms.
Keywords:
China; Government support; IC development; Intellectual capital; Public policies

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