CHALLENGES FACED BY THE SMALL AND MEDIUM ENTERPRISES (SMEs) IN MALAYSIA: AN INTELLECTUAL CAPITAL PERSPECTIVE (original) (raw)

A Descriptive Study of Intellectual Capital in SMEs Operating in Electrical and Electronics Manufacturing Sector in Malaysia

Advances in business strategy and competitive advantage book series, 2015

The aim of this chapter is to find the existence of the components of intellectual capital in SMEs operating in the electrical and electronics manufacturing sector in Malaysia. To find the objective of this study, a valid research instrument was established to conduct a survey of 237 from 77 SMEs operating in Penang and Selangor. A descriptive statistical analysis was conducted to explore the existence of the six components of intellectual capital, namely human capital, customer capital, structural capital, social capital, technological capital, and spiritual capital in SMEs operating in the electrical and electronics manufacturing sector. The results reveal that the respondents of Malaysian SMEs perceive that the six components of intellectual capital play a pivotal role in competitive advantage and superior performance.

Exploring intellectual capital of Malaysian small and medium entrepreneurs

2011

Intellectual capital is one of the important resources for small and medium entrepreneurs. Proper manipulation of intellectual capital will become a source of sustained competitive advantages for the entrepreneur. This study explores the level of intellectual capital of Malaysian small and medium entrepreneurs. Furthermore this study also compare for any significant differences in the level of intellectual capital between micro, small and medium entrepreneurs. Based on a survey of 115 SMEs, this study found that Malaysian SMEs does exhibit a high level of intellectual capital. The survey also reveals that micro, small or medium entrepreneurs exhibit similar level of intellectual capitals.

Intellectual capital and performance of electrical and electronics SMEs in Malaysia

The purpose of this study is to empirically test the integrated intellectual capital model (IICM) in small and medium enterprises (SMEs) operating in electrical and electronics manufacturing sector in Malaysia. A valid research instrument was utilised to conduct a survey of 237 individuals from 77 SMEs operating in electrical and electronics manufacturing sector in Malaysia. Cronbach’s alpha, exploratory factor analysis and confirmatory factor analysis were used to examine the reliability and validity of research instrument. Finally multiple regression analysis was run to test the research hypotheses. Subsequently, two out of six research hypotheses were rejected. The findings of this study provide valuable insights on the generalisability of intellectual capital. Intellectual capital is a prime strategic asset for the success of organisations. The findings of this study will highlight the concept and applications of intellectual capital in SMEs operating in Malaysia. This research is among a few to investigate the influence of intellectual capital in Malaysia by using IICM and the first to study in electrical and electronics SMEs in manufacture sector.

Do Malaysia and Pakistan are suitable for a comparative study of SMEs: an intellectual capital perspective?

Intellectual capital appears as the most important and vital component of a knowledge-based economy. Present economy is known as a knowledge-based economy where, knowledge, information and soft assets have more importance rather than the physical assets. The role and importance of SMEs in a knowledge-based economy has been highly appreciated and acknowledged. Moreover, in the present economy, SMEs are facing tremendous challenges and threats to survive in a competitive environment. In a competitive environment the hightech SMEs need to upgrade their intellectual capital including knowledge, database, technological advancement and innovation in order to stay in a competitive environment. Therefore, SMEs need to focus on the exploitation and application of their intellectual capital.

The importance of intellectual capital information to SMEs in Malaysia

2010 International Conference on Science and Social Research (CSSR 2010), 2010

In the globalised and knowledge-based economy, SMEs need to develop, manage and monitor their soft assets or intellectual capital (IC) to enhance their competitiveness. However, the present accounting system was designed to account for the tangible assets rather than the intangibles. Hence, IC may not be captured and reported by most firms. This paper explores the importance of IC to Malaysian SMEs and the types of IC information deemed important to them. A postal survey with the aid of a questionnaire was carried out. IC information was found to be relevant to SMEs in Malaysia. Intangible resources are regarded as important as the tangible ones. SMEs have often considered IC when defining strategies. Consequently, more specific IC information needs to be communicated in the annual reports. Guidelines on IC reporting should benefit SME managers and decision makers.

Intellectual capital and organisational performance in Malaysian knowledge-intensive SMEs

International Journal of Learning and Intellectual Capital, 2018

This study was designed to test and validate the integrated intellectual capital model by examining the relationship between intellectual capital and organisational performance of small and medium enterprises (SMEs) operating in the electrical and electronics manufacturing sectors in Malaysia. Data was collected through a validated survey instrument administered on a sample of 237 respondents from targeted SMEs. Cronbach's

SMEs Performance: Does Intellectual Capital Matter?

The transition from the traditional form of a production-based economy to a knowledge-based economy due to the changes in the global business environment leads to the recognition of intangible resources in value creation. As major components of intellectual capital, human capital, structural capital and relational capital are believed to critically contribute to the competitive advantage and superior performance of firms in different sectors and sizes. In SMEs, intellectual capital resources must be efficiently strategized and managed in order to enhance the performance, simultaneously serve their role as a major driver of nation economic growth and wealth creation. The uniqueness of the characteristics of SMEs lead to the differences in intellectual capital management as oppose to their larger counterparts. Thus, this conceptual paper will highlight the importance of intellectual capital management on the performances of Malaysian SMEs. This conceptual paper is hoped to provide SMEs‟ managers with the insights of intellectual capital management, which might enhance firm performance in this challenging modern business environment.

The Impact of Intellectual Capital on Firm Performance of Manufacturing SMEs in Malaysia

Asian Journal of Basic Science & Research , 2021

There are various factors from empirical studies that many factors influence firm performance. The purpose of this conceptual paper is to review the impact of intellectual capital as a unidimensional factor on the performance of manufacturing SMEs operating in Malaysia. The framework was developed after a systematic review of past literature. The present paper found the critical influence of the study's variables on firm performance. Furthermore, the study provided some understanding of how intellectual capital affects manufacturing SMEs' performance in Malaysia. Intellectual capital plays an important role in influencing a Manufacturing SMEs firm performance. The paper emphasizes the critical value of intellectual capital for SMEs owner/managers consideration when acting on behalf of their company, failing to experience poor performance. Resource-Based View (RBV) theory underlies the conceptual framework and explains the relationship among variables. In addition, some implications of this conceptual model for theory and practice are discussed.

The relationship of intellectual capital, innovation and organisational performance: a preliminary study in Malaysian SMEs

Intellectual capital also known as organisational knowledge needs to regulate to make sure that knowledge is valuable. It provides structure, system, strategy and culture, which is an antecedent of innovation. Globalisation has encouraged small and medium enterprises (SMEs) to be more innovative, to be more competitive in the global market. The study integrates intellectual capital and innovations for better SMEs' performance. It focused on the internal resources of SMEs' as regarded as an advantage. The study is the preliminary analysis of intellectual capital and innovation in SMEs. The findings reveal that it is essential for SMEs' to understand their capabilities in assessing inner strengths that will assist SMEs' to be innovative and more competitive, along with objectives in operating business, thus enhance organisational performance.

CONSTRUCTING AN INDEX OF ENTREPRENEURIAL COMPETENCIES AND INTELLECTUAL CAPITAL FOR ICT SMES IN MALAYSIA

Conference procceding, 2014

Entrepreneurial competencies and intellectual capital has been found to be the most important strategic assets necessary of organizations in a competitive environment. Previous related literature shows that entrepreneurial competencies and intellectual capital are playing significant role to enhance the performance of SMEs. Since Malaysian SMEs are facing severe threats for their survival and still has not reached the stage of full potential. Therefore, to improve the performance, and provide maximum chance of survival, the SMEs need to realize their entrepreneurial competencies and intellectual capital to reach at a competitive edge. They need to visualize the contemporary scenarios and change their mindset to transform themselves to support the strategies of Malaysia to become a high-income, developed country by 2020. In order to reach vision 2020 SMEs require to develops and enhance their entrepreneurial competencies and intellectual capital resources that could help them to become more competitive and innovative SMEs. This empirical study focuses on the entrepreneurial competencies and intellectual capital towards enhancement of the performance of Information and Communication Technology (ICT) SMEs in Malaysia.