scholarly journals Intellectual capital in small and medium enterprises in Pakistan

2015 ◽  
Vol 16 (1) ◽  
pp. 224-238 ◽  
Author(s):  
Muhammad Khalique ◽  
Nick Bontis ◽  
Jamal Abdul Nassir bin Shaari ◽  
Abu Hassan Md. Isa

Purpose – The purpose of this paper is to evaluate the links between intellectual capital sub-components and organizational performance in small and medium enterprises (SMEs) operating in the electrical and electronics manufacturing sector in Pakistan. Design/methodology/approach – Data were collected through structured questionnaires from a sample of 247 respondents from Pakistani SMEs in Gujranwala and Gujarat. Several tests were used to examine the reliability and validity of the research instrument. Finally, multiple regression analysis was used to test the proposed research hypotheses. Findings – The findings of this study demonstrate that the overall regression model of intellectual capital shows goodness of fit while one component of intellectual capital – namely human capital – appeared insignificant. Subsequently, six out of seven research hypotheses was accepted. Practical implications – This study will provide a valuable framework for entrepreneurs, executives, managers and policy makers in managing intellectual capital within the Pakistani context. Originality/value – To the best knowledge of the authors, this is the first empirical study that has been conducted on SMEs operating in the electrical and electronics manufacturing sector in Pakistan.

Author(s):  
Muhammad Khalique ◽  
Jamal Abdul Nassir bin Shaari ◽  
Shazali Abu Mansor

This chapter identifies the existence of the major components of intellectual capital in Small and Medium Enterprises (SMEs) operating in the electrical and electronics manufacturing sector in Pakistan. This study has been designed with the aim of selecting 6 major components of intellectual capital, namely human capital, customer capital, structural capital, social capital, technological capital, and spiritual capital. A structured questionnaire was utilized to conduct a survey of 247 respondents from 106 SMEs to identify the existence of these components of intellectual capital. This study confirms the existence of the major components of intellectual capital in SMEs operating in electrical and electronics manufacturing sector in Pakistan. The findings of this study provide valuable insights on the generalizability of the components of intellectual capital in a novel research setting in Pakistani. The findings of the study allow SMEs practitioners a better understanding about the existence of the components of intellectual capital on which they ought to focus their management efforts in order to take competitive advantage. This study is among only a few to investigate the existence of the components of intellectual capital in Pakistani SMEs and the first to SMEs operating in the electrical and electronics manufacturing sector.


2020 ◽  
Vol 21 (6) ◽  
pp. 893-911 ◽  
Author(s):  
Mírian Oliveira ◽  
Carla Curado ◽  
Andrea Raymundo Balle ◽  
Aino Kianto

PurposeThe purpose of this paper is to explore the relations among knowledge sharing (KS), intellectual capital (IC), absorptive capacity (AC), innovation (IN) and organizational performance (OP).Design/methodology/approachThis paper empirically tests a model that uses structural equation modeling (SEM) based on a partial least squares (PLS). The sample is composed of 351 Brazilian and 135 Portuguese enterprises. They are micro, small and medium enterprises.FindingsThe results show that: the relation between KS and AC is partially mediated by IC; the relation between IC and IN is partially mediated by AC and the relation between KS and IN is mediated by AC and IC or both. There are relations among KS, IC, AC, IN and OP.Research limitations/implicationsThe study does not control for industry effects and technological differences among the firms.Practical implicationsThe use of KS mitigates the loss of knowledge associated to employees' retirement or job changes. The knowledge appropriation by the organization (turning human capital (HC) into structural capital (SC)), the knowledge achieved from connections (relational capital, RC) and the trust embedded in an organization's relation with employees are important for AC and IN. Moreover, KS can positively influence all elements of IC. OP depends directly on IN and indirectly on the others constructs.Originality/valueThis study is relevant because it explores the relations among KS, IC, AC, IN and OP in one model. Moreover, it focuses on small and mid-size enterprises (SMEs) with data from two countries.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafique Ur Rehman ◽  
Hamzah Elrehail ◽  
Abdallah Alsaad ◽  
Anam Bhatti

PurposeThis study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating role of management control systems (MCS) and business strategies, as well as the moderating role of innovation capabilities.Design/methodology/approachThe data was collected from the managers of small and medium enterprises (SMEs) through a structured questionnaire. Out of 1,152 questionnaires distributed, only 415 were used for analysis purposes. Structural equation modelling (SEM) was used to test the study hypotheses.FindingsIntellectual capital significantly influences MCS, business strategies and innovative performance. Moreover, MCS, business strategies and innovative capabilities significantly improve innovative performance. MCS and business strategies significantly mediate the relationship between intellectual capital and innovative performance. Finally, innovative capabilities significantly moderate that between intellectual capital and innovative performance.Practical implicationsThe current research examines how management should use MCS, business strategies, and innovative capabilities to take maximum benefit from intellectual capital in order to improve innovative performance.Originality/valueThis is pioneering research that develops a theoretical model to incorporate intellectual capital, MCS, business strategies, innovative capabilities and innovative performance. Even though the influence of various kinds of intangible assets/resources on innovative performance has been widely examined in the literature, scant attention has been paid to the role of MCS, business strategies, and innovative capabilities in leveraging the firm's intellectual capital.


2018 ◽  
Vol 31 (4) ◽  
pp. 701-718 ◽  
Author(s):  
Jose Brache

Purpose The purpose of this paper is to propose a conceptual model that portrays how contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on the export performance of small and medium enterprises (SMEs) in a Latin American emerging economy. Design/methodology/approach The author draws on multiple streams of literature including: co-location, networks, cooperation and export performance to suggest a series of solid theoretical insights to the literature on SMEs’ export performance, networks and co-location in the Latin American context. Findings Contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on export performance determining the final sign of such effect. Trust plays a role within all proposed mechanisms, but is not as fundamental as previously characterised in studies on the export performance of SMEs. Cooperation might exist, prevail, and exert a positive impact on SMEs’ export performance even in the absence of trust. Originality/value This paper contributes to the literature on SMEs’ export performance, networks and co-location in the Latin American context by presenting a theoretical model that enfolds co-location, networks, trade associations and cooperation effects on SMEs’ export performance under the same foundation. It creates the categories of “contextual factors” and “behavioural cooperation mechanisms” to differentiate the elements that weight on the relationship between firms and trade associations, thus facilitating or hindering export performance. It guides policy makers and company managers on where to focus when incentivizing conduct towards a more productive export performance in Latin America and other emerging economies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imad Jabbouri ◽  
Omar Farooq

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.


2014 ◽  
Vol 15 (2) ◽  
pp. 316-332 ◽  
Author(s):  
Alain Daou ◽  
Egide Karuranga ◽  
Zhan Su

Purpose – The purpose of this paper is to understand the characteristics of intellectual capital (IC) in Mexican small and medium enterprises (SMEs). Due to the shift from traditional factors of production to knowledge-based economy, an understanding of the role of IC has become crucial for SMEs to develop a competitive advantage. Design/methodology/approach – This study takes an in depth look at the three components of IC: human, organizational, and external capital. In order to do so, a quantitative study on 445 SMEs was conducted based on data collected through an online survey. A structural equation model is proposed that is a fit with the reality of Mexican SMEs. Regional differences are highlighted by means of multigroup analysis. Findings – The results suggest that the features of human and organizational capital are consistent with previous studies on SMEs in emerging economies. However, external capital shows some distinctive characteristics unique to Mexican context. Practical implications – Implications for managers and policymakers are discussed, whereby an adaptation of programs and policies are required to fit the Mexican context at the national and regional levels. Originality/value – To the best of the authors knowledge, this is the first study that observes the components of IC in Mexican SMEs.


2016 ◽  
Vol 7 (1) ◽  
pp. 62-84 ◽  
Author(s):  
Osama Alaskari ◽  
Mohammad Munir Ahmad ◽  
Ruben Pinedo-Cuenca

Purpose – The purpose of this paper is to develop a methodology that can help small and medium enterprises (SMEs), in the manufacturing sector, to select an appropriate lean tool for the company which will maximum benefits from adopting the tool. Design/methodology/approach – This study focuses on the selection of an appropriate lean tool for manufacturing SMEs. The methodology contains a quantitative approach that can assist SMEs in identifying the appropriate lean tool. A literature review, collation of experts’ opinions via a questionnaire and a case study (to provide a guideline as to how the developed methodology may work) are presented in this research. Findings – The findings revealed that the proposed methodology was effective in identifying the appropriate lean tools for companies, according to the key performance indicators in the manufacturing SME sector. Practical implications – The developed methodology can be used by manufacturing SMEs as a decision support system to enable the representatives of the company to make an informed decision regarding the selection of the most appropriate lean tool (i.e. that will address the most important issue that the company is experiencing). The strength of using this methodology is that appropriate lean tool can be ascertained relatively easily and inexpensively. There is the prospect of this methodology being applicable to most types of SMEs. Originality/value – This methodology has proven to be useful for recommending the application of lean tools in a company’s attempt to become lean, bridging the gap identified in the literature review.


2020 ◽  
Vol 27 (2) ◽  
pp. 197-217 ◽  
Author(s):  
Shaista Wasiuzzaman ◽  
Nabila Nurdin ◽  
Aznur Hajar Abdullah ◽  
Gowrie Vinayan

PurposeThis study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.Design/methodology/approachSurvey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).FindingsIt is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.Originality/valueThis study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geetha Subramanian ◽  
Bhushan T. Patil ◽  
Bhaskar B. Gardas

Purpose Cloud technology is extremely critical for the continuing progress of Industry 4.0 and it helps in pooling centralized information for the business. Further, it offers a platform for collaboration for improving the performance of the industry. This paper aims to investigate the factors affecting the implementation of cloud technology for boosting Industry 4.0 adoption in micro, small and medium enterprises (MSMEs) of the manufacturing sector. Design/methodology/approach A total of 14 enablers were considered for the case study which were obtained from the literature survey and shortlisted by the experts of the domain (academia and industries). The interpretive structural modelling (ISM) approach has been used as a methodology for exploring the relationships between the enablers. Matrices impact croises multiplication applique and classment (MICMAC) analysis has been carried out for the validation of the developed structural model. MICMAC analysis helps to identify driving power and dependency potential of all considered enablers. Findings The results of the investigation indicate that three factors, namely, system integration, project management and competitive pressure, were significant. These factors drive all other considered factors in the implementation process. Research limitations/implications The opinions of the experts from the industry and academia were analyzed for the development of the hierarchical model and these inputs could be biased. This investigation intends to help the decision makers in the effective adoption of the cloud and Industry 4.0 technologies and for the formulation of the efficient implementation policies. Originality/value The present study aims to focus on cloud technology as well as Industry 4.0 in the context of manufacturing MSMEs and none of the previous investigations analyzed the enablers that influence the adoption of cloud technology for boosting Industry 4.0, especially using the ISM approach.


2015 ◽  
Vol 21 (1) ◽  
pp. 126-151 ◽  
Author(s):  
Hind El Makrini

Purpose – The purpose of this paper is to examine the managerial determinants of the export success of Moroccan small and medium enterprises (SMEs) based on resource-based view (RBV) of a firm. Design/methodology/approach – The quantitative design was employed involving a questionnaire completed by 100 managers of Moroccan SMEs. Multiple regression analyses were carried out to confirm or reject eight hypotheses. Findings – It was found that management export commitment and management customer orientation are the main managerial factors in the export success of Moroccan SMEs. Research limitations/implications – The study was limited to one context, and it followed a cross-sectional approach. Export success was measured by only subjective method with Likert scale. The study suggests that further investigations can be made to incorporate other factors affecting export success. Practical implications – The results offer insights into the practices of Moroccan exporting SMEs and recommendations for policy makers as well as an indication for further research. The research can also be used in teaching. Originality/value – First, the tested model is one of few that consider developing country contexts. Second, this research can serve as a guide for future researchers who intend to study export success in other developing countries, particularly in Maghreb regions where there is a gross dearth of research. Therefore, the study is of significant value to practitioners and scholars alike.


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