DYNAMIC CAPABILITIES OF INTELLECTUAL CAPITAL IN COOPERATIVES INNOVATION INITIATIVES

by

Riezelle Aguinaya I. Echanova

A Dissertation

Abstract

            This study explores the dynamic capabilities of intellectual capital in driving innovation within cooperative enterprises, with a specific emphasis on the role of human resources. Through a sample of seventy-two cooperatives, this research employs an explanatory sequential design (ESD) and integrates Rogers’ Theory, leveraging its four elements—innovation, communication channel, time, and social system—for understanding innovation diffusion. Additionally, it applies five key characteristics—relative advantage, compatibility, complexity, trialability, and observability—for comprehending innovation adoption.

The findings highlight that the cooperative profile has a modest impact on innovation diffusion and adoption. Specifically, education and training, integral components of the fifth cooperative principle, exhibit a moderate correlation with knowledge, underscoring their crucial role in influencing decision-making processes.

Investing strategically in education and training enhances innovation processes, fostering a culture of continuous learning, knowledge-sharing, and innovation. This empowers cooperatives to adapt and thrive in a dynamic business landscape, contributing to long-term success and sustainability.

Additionally, the financial structure of cooperatives emerges as a crucial factor influencing the implementation of the fifth cooperative principle. Adequate funding and sound financial management enable cooperatives to allocate resources to education, training, and information-sharing initiatives, thereby catalyzing further progress within cooperative enterprises.

Keywords: innovation, human resources, cooperatives, best practices