The Impact of Information Communication Technology and Intellectual Capital on Public Sector Performance: The Mediating Roles of Innovation and Corporate Entrepreneurship
Keywords:
ICT, Innovation, Entrepreneurship, Service Performance, Public SectorAbstract
The public sector services are essential for fulfilling the basic needs of the citizens. However, evidence of poor public service delivery continues to raise concerns. The main aim of this research is to recommend enhancements for public service performance. This research is quantitative in nature, with a sample of 250 employees who use Information and Communication Technology selected for the study with their responses analyzed through the Structural Equation Modeling method (SEM). The key findings are, intellectual capital significantly influences organizational performance; ICT Use significantly influences innovation and corporate entrepreneurship; and innovation significantly influences corporate entrepreneurship. It is mentioned to incorporate ICT use and intellectual capital in future frameworks related to public sector performance under theoretical implications. The practical implications are the development of intellectual capital in public organizations and integration of ICT in office environment to promote ICT use. The policy implications highlight the necessity for authorities to formulate policies to develop intellectual capital and encourage ICT use in public sector settings.References
Afawubo, K., & Noglo, Y. A. (2021). ICT and entrepreneurship: A comparative analysis of developing, emerging and developed countries. Technological Forecasting and Social Change, 175, 121312. https://doi.org/10.1016/j.techfore.2021.121312
Agarwal, R., & Prasad, J. (1998). The antecedents and consequents of user perceptions in information technology adoption. Decision Support Systems, 22(1), 15–29. https://doi.org/10.1016/S0167-9236(97)00006-7
Ahmed, S. S., Guozhu, J., Mubarik, S., Khan, M., & Khan, E. (2020). Intellectual capital and business performance: The role of dimensions of absorptive capacity. Journal of Intellectual Capital, 21(1), 23–39. https://doi.org/10.1108/JIC-11-2018-0199
Alahakoon, M. U. I., & Jehan, S. N. (2020). Efficiency of public service delivery—A post-ICT deployment analysis. Economies, 8(4), 97. https://doi.org/10.3390/economies8040097
Alam, K., Ali, M. A., Erdiaw-Kwasie, M., Shahiduzzaman, M., Velayutham, E., Murray, P. A., & Wiesner, R. (2022). Impact of ICTs on innovation and performance of firms: Do start-ups, regional proximity and skills matter? Sustainability, 14(10), 5801. https://doi.org/10.3390/su14105801
Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2020). The impact of social capital and collaborative knowledge creation on e-business proactiveness and organizational agility in responding to the COVID-19 crisis. Journal of Innovation & Knowledge, 5(4), 279–288. https://doi.org/10.1016/j.jik.2020.10.002
Baena-Luna, P., Martínez-Román, J. A., Romero-García, J. E., & Liñán, F. (2024). The influence of corporate entrepreneurship strategy on SMEs’ internationalization: Proposing and testing a model. Journal of Entrepreneurship in Emerging Economies. Advance online publication. https://doi.org/10.1108/JEEE-03-2024-0117
Beltramino, N. S., García-Perez-De-Lema, D., & Valdez-Juárez, L. E. (2020). The structural capital, the innovation and the performance of the industrial SMEs. Journal of Intellectual Capital, 21(6), 913–945. https://doi.org/10.1108/JIC-01-2019-0020
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100300. https://doi.org/10.1016/j.jik.2023.100300
Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41, 745–783. https://doi.org/10.1007/s10490-023-09871-y
Cronin, J. J., & Taylor, S. A. (1994). SERVPERF versus SERVQUAL: Reconciling performance-based and perceptions-minus-expectations measurement of service quality. Journal of Marketing, 58(1), 125–131. https://doi.org/10.1177/002224299405800110
D’Angelo, S., Cavallo, A., Ghezzi, A., & Di Lorenzo, F. (2024). Understanding corporate entrepreneurship in the digital age: a review and research agenda. Review of Managerial Science, 18(12), 3719-3774.
https://doi.org/10.1007/s11846-024-00730-8
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982–1003. https://doi.org/10.1287/mnsc.35.8.982
Department for Registration of Persons. (2016). Home. https://drp.gov.lk/en/home.php
Edelsbrunner, P. A., Simonsmeier, B. A., & Schneider, M. (2025). The Cronbach’s alpha of domain-specific knowledge tests before and after learning: A meta-analysis of published studies. Educational Psychology Review, 37(4). https://doi.org/10.1007/s10648-024-09982-y
Falcó, J. M., Lajara, B. M., & Zaragoza-Sáez, P. (2022). Analyzing the evolution from intellectual capital to green intellectual capital. In Advances in Business Strategy and Competitive Advantage (pp. 72–90). IGI Global. https://doi.org/10.4018/978-1-6684-6815-9.ch005
Fernando, E., Kularathna, A. I., & Rathnayaka, R. B. P. (2024). Determinants of effective public service delivery in local governments of Sri Lanka: Employees’ perspectives. In Public Sector Reform and Management (pp. 115–133). Springer. https://doi.org/10.1007/978-3-031-49841-1_7
Garrido-Moreno, A., Martín-Rojas, R., & García-Morales, V. J. (2024). The key role of innovation and organizational resilience in improving business performance: A mixed-methods approach. International Journal of Information Management, 77, 102777. https://doi.org/10.1016/j.ijinfomgt.2024.102777
Gatignon, H., Tushman, M. L., Smith, W., & Anderson, P. (2002). A structural approach to assessing innovation: Construct development of innovation locus, type, and characteristics. Management Science, 48(9), 1103–1122. https://doi.org/10.1287/mnsc.48.9.1103.174
Girma Aragaw, Z., Haag, K., & Baù, M. (2024). Contextualizing corporate entrepreneurship: A systematic review and future research agenda. Entrepreneurship & Regional Development, 37(1–2), 1–37. https://doi.org/10.1080/08985626.2024.2341886
Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. https://doi.org/10.3390/su11205782
Huynh, T. N., Nguyen, P. V., Do, A. M., Dinh, P. U., & Vo, H. T. (2024). Fostering organizational performance through innovation: The roles of environmental policy instruments, organizational learning supports, and intellectual capital. Heliyon, 10(20), e39361. https://doi.org/10.1016/j.heliyon.2024.e39361
Jackson, E. A. (2020). Importance of public service in achieving the UN SDGs. In W. Leal Filho, A. Azul, L. Brandli, A. Lange Salvia, & T. Wall (Eds.), Decent Work and Economic Growth: Encyclopedia of the UN Sustainable Development Goals. Springer. https://doi.org/10.1007/978-3-319-71058-7_20-2
Kamar, K., Lewaherilla, N. C., Ausat, A. M. A., Ukar, K., & Gadzali, S. S. (2022). The influence of information technology and human resource management capabilities on SMEs performance. International Journal of Artificial Intelligence Research, 6(1.2), 1. https://doi.org/10.29099/ijair.v6i1.2.676
Karim, M. S., Nahar, S., & Demirbag, M. (2022). Resource-based perspective on ICT use and firm performance: A meta-analysis investigating the moderating role of cross-country ICT development status. Technological Forecasting and Social Change, 179, 121626. https://doi.org/10.1016/j.techfore.2022.121626
Kreiterling, C. (2023). Digital innovation and entrepreneurship: A review of challenges in competitive markets. Journal of Innovation and Entrepreneurship, 12, 49. https://doi.org/10.1186/s13731-023-00320-0
Kulal, A., Rahiman, H. U., Suvarna, H., Abhishek, N., & Dinesh, S. (2024). Enhancing public service delivery efficiency: Exploring the impact of AI. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100329. https://doi.org/10.1016/j.joitmc.2024.100329
Kusi-Sarpong, S., Mubarik, M. S., Khan, S. A., Brown, S., & Mubarak, M. F. (2021). Intellectual capital, blockchain-driven supply chain and sustainable production: Role of supply chain mapping. Technological Forecasting and Social Change, 175, 121331. https://doi.org/10.1016/j.techfore.2021.121331
Lim, W. M. (2024). A typology of validity: Content, face, convergent, discriminant, nomological and predictive validity. Journal of Trade Science, 12(3), 155–179. https://doi.org/10.1108/JTS-03-2024-0016
Malinga, C. (2025, January 16). Pushing up State sector efficiency, commitment and professionalism. Daily News. https://www.dailynews.lk/2025/01/17/featured/706221/pushing-up-state-sector-efficiency-commitment-and-professionalism
Malodia, S., Mishra, M., Fait, M., Papa, A., & Dezi, L. (2023). To digit or to head? Designing digital transformation journey of SMEs among digital self-efficacy and professional leadership. Journal of Business Research, 157, 113547. https://doi.org/10.1016/j.jbusres.2022.113547
Masuku, M. M., & Jili, N. N. (2019). Public service delivery in South Africa: The political influence at local government level. Journal of Public Affairs, 19(4), e1935. https://doi.org/10.1002/pa.1935
McDougall, P. P., Covin, J. G., Robinson, R. B., & Herron, L. (1994). The effects of industry growth and strategic breadth on new venture performance and strategy content. Strategic Management Journal, 15(7), 537–554. https://doi.org/10.1002/smj.4250150704
Mukaro, C. T., Deka, A., & Rukani, S. (2023). The influence of intellectual capital on organizational performance. Future Business Journal, 9(1), 45. https://doi.org/10.1186/s43093-023-00208-1
Panzeri, A., Castelnuovo, G., & Spoto, A. (2024). Assessing discriminant validity through structural equation modeling: The case of eating compulsivity. Nutrients, 16(4), 550. https://doi.org/10.3390/nu16040550
Pareek, U., & Sole, N. A. (2022). Quality of public services in the era of guaranteed public service delivery. Indian Journal of Public Administration, 68(2), 160–173. https://doi.org/10.1177/00195561211072575
Rehman, N., Razaq, S., Farooq, A., Zohaib, N. M., & Nazri, M. (2020). Information technology and firm performance: Mediation role of absorptive capacity and corporate entrepreneurship in manufacturing SMEs. Technology Analysis & Strategic Management, 32(9), 1049–1065. https://doi.org/10.1080/09537325.2020.1740192
Rogers, C. R. (1995). A way of being. Houghton Mifflin Harcourt
Santos, P. (2023). Unveiling management trends in the public sector: A literature review and research agenda. Central European Journal of Public Policy, 17(1), 1–15. https://doi.org/10.2478/cejpp-2023-0006
Shittu, A. K. (2020). Public service and service delivery. In Global Encyclopedia of Public Administration, Public Policy, and Governance (pp. 1–8). Springer. https://doi.org/10.1007/978-3-319-31816-5_4005-1
Silva, G., & Di Serio, L. C. (2021). Innovation in the “forgotten businesses.” Innovation & Management Review, 19(2), 154–173. https://doi.org/10.1108/INMR-04-2019-0045
Spaho, M. (2024). Intellectual capital as an essential component of managing human resource accounting: An argumentative review. European Journal of Accounting, Auditing and Finance Research, 12(9), 53–66. https://doi.org/10.37745/ejaafr.2013/vol12n95366
Subhaktiyasa, P. G. (2024). PLS-SEM for multivariate analysis: A practical guide to educational research using SmartPLS. EduLine: Journal of Education and Learning Innovation, 4(3), 353–365. https://doi.org/10.35877/454ri.eduline2861
Sutjahjanti, A., Kustiani, L., & Firdiansjah, A. (2021). Description of the role of service performance towards increasing customer satisfaction. East African Scholars Journal of Economics, Business and Management, 4(6), 129–137. https://doi.org/10.36349/easjebm.2021.v04i06.004
Szudrowicz, I. (2020). Research on the connection between relational capital and company performance. Prace Naukowe Uniwersytetu Ekonomicznego We Wrocławiu, 64(12), 124–143. https://doi.org/10.15611/pn.2020.12.10
Thanh, T., Nguyen, P. V., Vrontis, D., & Ahmed, Z. U. (2023). Unleashing corporate potential: The interplay of intellectual capital, knowledge management, and environmental compliance in enhancing innovation and performance. Journal of Knowledge Management. Advance online publication. https://doi.org/10.1108/JKM-05-2023-0389
Urbano, D., Turro, A., Wright, M., & Zahra, S. (2022). Corporate entrepreneurship: A systematic literature review and future research agenda. Small Business Economics, 59, 1–25. https://doi.org/10.1007/s11187-021-00590-6
Vasudevan, H. (2021). Resource-based view theory application on the educational service quality. International Journal of Engineering Applied Sciences and Technology, 6(6), 174–186. https://doi.org/10.33564/IJEAST.2021.v06i06.026
Weerasinghe, W. M. T. N., & Thilakasiri, K. K. (2024). Impact of corporate governance on intellectual capital efficiency: Evidence from Sri Lankan banking sector. Journal of Accountancy & Finance, 11(1), 17–34. https://doi.org/10.57075/jaf1112402
Yendra, C., Nugroho, A. C., & Ifadianto, N. (2024). Smart PLS methods in station user perception survey (Case study: Tanjung Karang Station). IOP Conference Series: Earth and Environmental Science, 1361(1), Article 012034. https://doi.org/10.1088/1755-1315/1361/1/012034
Yunis, M., Tarhini, A., & Kassar, A. (2018). The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship. Journal of Business Research, 88, 344–356. https://doi.org/10.1016/j.jbusres.2017.12.030
Zahra, S. A. (1996). Governance, ownership, and corporate entrepreneurship: The moderating impact of industry technological opportunities. Academy of Management Journal, 39(6), 1713–1735. https://doi.org/10.2307/257076
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Thisara Weerasinghe
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
