2. Literature review 2.1. Innovation and performance According to Klaus Schwab (2016) "The Fourth Industrial Revolution Human Capital speaks to this individual awareness stock of a com- Srinivasan et al. (2009) empirically and conceptually examined how creates a world in which virtual and physical systems of manufacturing pany, represented by its workers (Bontis et al., 2002). Capital is pro- customer value creation (through product innovation) and customer cooperate flexibly at the global level". It is the fusion of pre-existing duced by employees through their readiness, their frame of mind, and value communication (through marketing investments) affect stock technologies, and their interactions across the physical, digital, and their fitness. Whilst the condition of the brain covers the area of the job returns. Using a large-scale econometric analysis of product innovation, biological domains that make the Fourth Industrial Revolution funda- of the representative, their fitness incorporates training and skills. In- and associated marketing mix in the automobile industry, the results of mentally different from the previous revolutions. German economist tellectual ability empowers humans to alter rehearsals, and to think the study revealed that pioneer innovations have a beneficial impact on Klaus Schwab (2016) foresaw the Fourth Industrial Revolution as he about innovative responses for the issues at hand (Roos, 1998). Social stock returns. The results highlighted that the stock market returns are stated that "We are at the beginning of a revolution that is fundamentally Capital speaks to the Business's Capacities, and its internal issues to seven times greater, and their advertising support is nine times more changing the way we live, work, and relate to one another". fulfill. Moreover, it integrates together programs, information frame- effective when it comes to pioneering innovations. Other than that, Gu In this context, innovation is a multifaceted expression that utilizes works, foundations, techniques, and culture. Moving on, the structural Feng (2005) also found that patent citation impact, and the leading the key and operational levels of business, enveloping business pro- capital is the skeleton, as well as the bonding agent of a company, as it Index of technology companies' innovation capacities, are linked to cedures, items, administrations, candidate insight, business strategy, gives the tools such as managements' doctrine, culture, and processes future earnings. The results of their study revealed that the association arrangement detailing, and comprehension clients. Since the primary including holding, bundling, and transferring information (Petty and of earning, with the change of patent citation impact is in fact, favorable. phases of creating intellectual capital, in terms of the administration of Guthrie, 2000; Lim and Dallimore, 2004; Bontis et al., 2000). The RC Investors and analysts do not fully integrate improved innovation ca- innovation, advancement has been recognized as an important deter- involves an intensive understanding of market and customer preferences pacities for future earnings' implication into stock prices and forecasts minant of aggressiveness (Borin and 2015). The evaluation of channels, including the connections, associations with authorities, or regarding the estimated earnings. In the same context, Masso and literature has demonstrated that the results extracted from innovative supplier industry affiliations. It can be distinguished as the actual and Vahter (2007) examined the relationship between innovation and procedures are hard to foresee. This is at any rate due to the reason that potential asset that individuals get from understanding other interper- spending. They found a positive relationship with the orientation to the the effort required in building up a relationship between the measures of sonal drivers or organizations, with developed procedures and innova- international market. Also, a larger propensity is found for larger firms innovation and firm performance because innovation administration, is tive products (Gann and Salter, 2000). that engage in innovative activities, and the study differentiates between dependent upon the scope of many variables (Tidd et al., 2001). An According to a survey conducted by Kirsner (2018), the main ob- he process and product innovation as well. Moreover, productivity in underlying audit of the practice writing on innovation recognizes a stacles to innovation for large companies, are lack of alignment and dicates firm performance that is positively influenced by process inno- crevice between the chiefs' view of innovation, and consciousness of the political issues within the organization, inadaptability to change, the vation, and not by product invention. criteria required for fruitful innovation (Atuahene-Gima, 1996). Hirsh- lack of effective change management processes, lack of effective Moving on, Salim and Sulaiman (2011) investigated the organiza- leifer et al. (2018) empirically examined innovative originality, profit- responsiveness towards signals crucial for business success, lack of tional learning on innovation, in addition to the impact on organiza- ability, and stock return. Findings showed that innovative originality, adequate budget to cater R&D requirements, and also the lack of the tional performance, by using data of the digital survey from 320 and a firm's performance toward complex information, that is found in right strategic vision. The author stressed the need for long term enterprises that happen to be medium and small ICT sectors in Malaysia. psychological studies of cognitive fluency, explain the return predict- commitment towards innovation in order to effectively materialize and These results help the firms to comprehend the relationship between ability of companies. maximize the benefits. The strategic team of the company not only has to functionality and creation. Results also help consultants who aid small The connection between intellectual capital and innovation spread to have a clear vision of the innovation requirements of the business, but and medium enterprises. Also, firms understand to a greater extent that strategy producers, is primarily inspired by the advancing innovation in they must also ensure that these have been communicated to the t helps them to achieve their targeted strategies and better perfor- national economies, as a wellspring of development and financial grass-root level. mance. Innovation isn't restricted to just big organizations, but also lourishment. IC is considered to be an important ingredient for orga- seeps into medium and small enterprises. Other than that, Fang et al izations' future potential. Hypothetical and exact reviews demonstrate (2011) examined the impact of innovation and client advantage that it is one of a kind mix of diverse parts of IC, and substantial ventures configuration plans, on the business performance. Results demonstrate that determine an endeavor's upper hand. Moreover, experimental re- that performance is greatest when companies employ configurations views give proof to the strong linkages and prospects among research that require innovation or innovative assets. These need to be wide, and development, innovation, human resources, and relational capital customized and profound, the effects of which are enhanced in terms of (Zambon et al., 2006). the business performance when the configuration approaches are used. The expression of intellectual capital was originally established by the market analyst John Kenneth Galbraith, in the 1960s (Yitmen, 2011), and in the recent decade the phrase has grown to the extent that it has achieved ubiquity. Stewart's (1998) persuasive article recoups the expression IC after over three years, and brings it immovable on the administration and research programming maps. This term is utilized in this manner, in order to portray the dynamic effects of people's brains. This pulls in the consideration of small business specialists and analysts, and made exactly the principle stimulus for starting an inquiry into the dynamics of technological growth. IC research provides a hypothetical extension into investigating the linkages between the static idea (i.e., information stocks) and the lively thoughts (i.e., information streams) of the company's asset-based views. The asset and the view of the firm are the structures for the hypothetical advancement of capital. IC, composing additionally, gives an all-encompassing point of view of significant worth creation for the key management of the firm (Yitmen, 2011)