Intellectual Capital, Service Innovation, and Generation Z Performance: A systematic review

Abstract

The banking industry is undergoing a profound transformation driven by digitalization, financial technology (FinTech), evolving customer expectations, and the growing participation of Generation Z (Gen Z) employees in the workforce. In this dynamic environment, intellectual capital has emerged as a critical strategic resource for enhancing organizational capabilities, while service innovation has become a key mechanism for sustaining competitiveness and improving employee performance. Although an expanding body of research has examined the relationships among intellectual capital, service innovation, and organizational performance, the literature remains fragmented, with limited understanding of how these constructs collectively influence Gen Z employee performance within the banking sector. Furthermore, evidence from Malaysia and Indonesia, two rapidly digitalizing banking markets in Southeast Asia, has not been systematically synthesized. This systematic review examines how intellectual capital and service innovation impact employee performance in banking, focusing on Gen Z and the banking sectors of Malaysia and Indonesia. It addresses three main questions: (1) How do intellectual capital and service innovation affect Gen Z employee performance? (2) What theories and methods are used in existing research in Malaysia and Indonesia? (3) What research gaps exist regarding Gen Z and regional comparisons? Following PRISMA 2020 guidelines, the review analyzes peer-reviewed articles from 2015–2026 identified in Scopus using predefined search criteria. Studies are screened and synthesized through bibliometric and thematic analyses, covering publication trends, theories, methods, intellectual capital, service innovation, employee outcomes, and regional patterns. The anticipated findings suggest that human, structural, and relational capital are key drivers of service innovation and improved employee performance in banking. However, there is a lack of comprehensive studies examining how these factors, together with service innovation, affect Gen Z employees. This gap limits understanding of Gen Z’s unique influence on intellectual capital and service innovation outcomes. The review also highlights the scarcity of research focused on Gen Z and the lack of comparative studies between Malaysian and Indonesian banks, making it difficult to generalize findings or create region-specific strategies. By integrating fragmented evidence and identifying gaps, this review aims to advance the literature and encourage further research into generational and regional factors. The findings will support banking managers seeking to boost innovation and Gen Z workforce performance and provide direction for future studies in digital and knowledge-driven banking.