This study develops and empirically tests a model that links alternative strategic orientations with
intellectual capital (IC) by mediating the effects of value-creating activities. Field visits and interviewbased
questionnaires are used to collect data. A structural equation model is used to examine Taiwanese
small- and medium-sized enterprises (SMEs) in China. Empirical results show that a resource-oriented
strategy indirectly affects innovation capital by capitalizing on the manufacturing process and
development of local innovation centers. Finally, innovation capital contributes to customer capital.
Furthermore, a cause–effect relationship exists among market-orientation strategies, value-creation
activities, and IC. Market-orientation strategies affect the cultivation of human resource, development of
communication channels to customers, and establishment of localized social networks. The development
of communication channels to customers and the establishment of localized social networks affect human
capital, which in turn influences customer capital.
