Intellectual capital and organisational performance in Malaysian knowledge-intensive SMEs (original) (raw)
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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.
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.
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.
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.
In a knowledge based economy the role of small and medium enterprises is very critical for the economic development. The main thrust of this study was on the competiveness of the SMEs in a knowledge-based economy. In addition, this study also explores the challenges which are facing the small and medium enterprises (SMEs) in Malaysia. The significance of the study will add the knowledge about the current issues relating with SMEs in Malaysia in intellectual capital perspective.
Exploring intellectual capital of Malaysian small and medium entrepreneurs
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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.
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.
International Journal of …, 2011
Intellectual capital is a prime strategic asset for organizations in a knowledge based economy. In a knowledge based economy it is indispensible for organizations to indentify, maximize and utilize their intellectual capital to stay in a competitive environment. The main crux of this paper is to examine the relationship of intellectual capital with organizational performance of electrical and electronics SMEs operating in manufacturing sector in Pakistan. This research is conducted in two cities of "Golden Tri Angle" namely Gujrat and Gujranwala in Pakistan. Convenience sampling technique was used for data collection. Structured questionnaires were administrated as a research instrument to collect data from respondents. Pearson Correlation and Multiple Regression were used to test the relationship between components of intellectual capital and organizational performance. This is the first study that focused on small and medium enterprises in Pakistan to examine the relationship of intellectual capital with organizational performance.
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.
Int'l Journal of Management Innovation Systems, 2009
This study seeks to examine the relationship of entrepreneurial orientation, age, experience and education of an entrepreneurs and entrepreneurial business venture decision (EBV). Higher institutions, government agencies and private corporations have setting up programmes, trainings, seminars, events and funds in producing dynamic entrepreneurs. Start-up business is the most challenging beginning for business as the failure rate remains high over time. Few researches have been done on entrepreneurial orientation but on established firms. Beside, education and experience play important role towards entrepreneurs’ alertness that will determine the successful opportunity recognition. This study is looking in depth the entrepreneurial orientation (proactiveness, risk-taking and innovativeness) of young entrepreneurs that influence their entrepreneur business venture start-up. Quantitative method is adopted and questionnaire is distributed using simple random sampling among young entrepr...