Intellectual Capital and Firm Performance Correlation: The Mediation Role of Innovation Capability in Malaysian Manufacturing SMEs Perspective

Understanding of intellectual capital’s influence on the firm performance has received immense interest in recent years. In this view, the impact of various intellectual capital components, including human, structural, and relational capital, on the performance of small- and medium-sized Malaysian m...

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Published inSustainability Vol. 14; no. 1; p. 154
Main Authors Aljuboori, Zainab M., Singh, Harcharanjit, Haddad, Hossam, Al-Ramahi, Nidal Mahmoud, Ali, Mostafa A.
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.01.2022
Subjects
Competitive advantage
Explicit knowledge
Focused manufacturing
GDP
Gross Domestic Product
Human capital
Innovations
Intellectual capital
Manufacturing
Manufacturing industry
Multivariate statistical analysis
Product life cycle
Strategic planning
Sustainability
Malaysia
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Summary:Understanding of intellectual capital’s influence on the firm performance has received immense interest in recent years. In this view, the impact of various intellectual capital components, including human, structural, and relational capital, on the performance of small- and medium-sized Malaysian manufacturing enterprises were examined. A correlation between intellectual capital and firm performance were established based on the mediating role of innovation capability. To achieve this goal, a stratified sampling method was used wherein 262 participants’ responses from the focused manufacturing firms were obtained and analyzed via the structural equation model (SEM) and resource-based view (RBV). Statistical tools like SPSS.v25 and SmartPLS.v3 were used. The results showed that the relationship between intellectual capital and firm performance was strengthened due to the mediation of innovation capability, thereby gaining higher competitive advantages. It was asserted that the present comprehensive analyses may offer a useful information and guidance to the academics, owners/managers, and policymakers involving the impact of intellectual capital development towards improving the Malaysian SMEs performance.
ISSN:2071-1050
2071-1050
DOI:10.3390/su14010154