The Impact of Social Capital and Intellectual Capital on Firm Performance with the Mediating Role of Innovation Activities: An Empirical Evidence of Employees of Software Houses of Abbottabad

Abstract

This study investigates the connection between social capital (SC), intellectual capital (IC), and firm performance (FP) in software firms in Abbottabad, KP, a developing city in Pakistan. In addition, the study investigates how innovation activities (INA) mediate these three factors. Utilizing quantitative methodologies, 400 employees were surveyed. The results indicate that social and intellectual capital enhance innovation and business performance. Innovation activities regulate the relationship between intellectual capital and business performance. This demonstrates how innovation processes make use of intellectual capital to enhance performance. This paper examines these characteristics of software
companies in developing economies, thereby filling a research vacuum. This enhances the field's comprehension. The study demonstrates the importance of social and intellectual capital, innovation, and a businessfriendly environment for software companies. These insights enable decision-makers, administrators, and executives in the software industry
of developing nations to enhance organizational performance and innovation. Additionally, the study establishes research on strategic management and organizational theory. It also encourages future research in various sectors and fields to better comprehend the intricate connections between social capital, intellectual capital, innovation activities, and enterprise success.