Abstract:
In this paper, I present a model that investigates (1) the impact of intellectual capital on firm innovation and (2)
the cultural influences on the development of social capital. Drawing upon theories of social capital, human capital and
culture dimensions, I propose that both human and social capital (which constitute the firm's stock of intellectual capital)
positively affects the level of firm innovation, however, the development of social capital is influenced by several cultural
dimensions. Specifically, I propose that the levels of social capital (and hence, levels of innovation) decrease with higher
levels of individualism, uncertainty avoidance and power distance.
