Role of Intellectual Capital in Women Entrepreneurs' Business Performance

Author(s):  
Sakinah Mat Zin ◽  
Khamisah Abd Manaf

This chapter presents an in-depth analysis on the relationship between intellectual capital and business performance in view to highlight gaps in the knowledge of women entrepreneurship in Malaysian small and medium enterprises (SMEs). The creation of intellectual capital is crucial to cope with organizational competitive issues in the present dynamics of globalized economics. A conceptual model is developed linking different dimensions of intellectual capital to business performance. In doing so, the sample of 167 respondents from women SME entrepreneurs in Kelantan was utilized. The survey data were analyzed using SPSS version 22. The results of the study reveal that intellectual capital significantly influences business performance. This enables entrepreneurs and scholars to make appropriate decisions that can foster business progress. Moreover, the empirical study presented in this chapter is the first of its kind over women SMEs from multiple sectors operating in Kelantan state located at the east coast of Peninsular Malaysia.

2018 ◽  
Vol 31 (2) ◽  
pp. 268-285 ◽  
Author(s):  
Zahid Yousaf ◽  
Abdul Majid

Purpose The purpose of this paper is to address the key issues, how organizational networks influence the strategic business performance (SBP) through the mediating role of organizational flexibility, and the moderating role of entrepreneurial orientation (EO). Contextualizing small and medium enterprises in developing countries, the authors have developed and tested a theoretical model of SBP to provide a framework for analyzing its major antecedents. Design/methodology/approach This research used a quantitative approach with cross-sectional data. The authors used correlation, regression and Baron and Kenny Approach (Causal Step Approach) for analyzing the data collected from 737 CEOs/MDs/owners of different small and medium enterprises to test the theoretical model developed for this study. Findings Findings revealed that organizational flexibility mediates the relationship between organizational network and SBP. Furthermore, stronger EO strengthens the relationship between organizational flexibility and SBP. Originality/value This study contributes in two ways: first, it provides empirical evidences that how to flourish the mechanism of SBP in SMEs. Second, this work contributes to understand the effects of organizational networks, flexibility and EO on SBP.


2016 ◽  
Vol 13 (03) ◽  
pp. 1640005 ◽  
Author(s):  
Kayhan Tajeddini

Research into product innovation and financial orientation in the small and medium enterprises (SMEs) is burgeoning, yet our understanding of the finance product innovation and performance remains unclear. Given the lack of empirical research on the role of financial orientation on innovation performance in the SMEs, especially in an Asian context, the current study addresses the relationships between financial orientation, product innovation and business performance in the Japanese SMEs, because it has a long established record on product innovation. Data were generated from 189 Japanese businesses and the results were analyzed using multiple regression. Results confirm the study hypotheses. Implications for management are discussed, along with suggestions for further research.


Author(s):  
Muhammad Khalique

The aim of this chapter is to shed light on the concept and application of intellectual capital in the food industry in Kuching, Malaysia. There is no doubt that intellectual capital is a most important strategic asset for the success of organizations. In a competitive business environment, intellectual capital has been a vital element of success, particularly in Small and Medium Enterprises (SMEs). The purpose of this study is to examine the role of intellectual capital in order to enhance the business performance of SMEs operating in the food industry in Kuching, Malaysia. In this chapter, three components of intellectual capital, namely human capital, customer capital, and structural capital, are employed to examine the role of intellectual capital in SMEs. A structured questionnaire with a five-point Likert Scale was used to gather the data from the targeted respondents by using a convenience-sampling technique. A total of 200 questionnaire sets were distributed to the targeted respondents. From the total distributed questionnaires, a total of 194 respondents gave their feedback. Four research hypotheses were addressed to find the objectives of this study. To test the proposed research hypotheses, multiple regression technique was used. The findings of this study show that the three components of intellectual capital collectively and individually have positive and significant relationships with the business performance of baking SMEs. Subsequently, the four hypotheses of this study were supported. This chapter is a preliminary study about the baking SMEs operating in the food sector in Malaysia.


2020 ◽  
Vol 47 (5) ◽  
pp. 643-662 ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Evelyn S. Devadason ◽  
Chandran Govindaraju

PurposeThis study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of Pakistan. The study also investigates the role of absorptive capacity in the relationship between human capital dimensions and export performance.Design/methodology/approachData from 586 manufacturing sector SMEs were collected for analysis. The study applied covariance-based structural equation modeling (SEM) to estimate the hypothesized relationships.FindingsAs a whole, human capital was found to exert a direct and indirect impact on export performance, particularly for the medium-sized firms and for firms with medium to high levels of export intensities. Nevertheless, not all dimensions of human capital mattered for export performance. Education and training were found to pose the greatest influence on export performance of those firms.Research limitations/implicationsThe results suggest that when devising appropriate policies for SMEs, the impact of different dimensions of human capital need to be considered for addressing challenges related to the internationalization of firms. In short, developing the right human capital is essential for SMEs to compete at the international level.Originality/valueUnlike previous studies, this study decomposed the influence of different dimensions of human capital on export performance and assessed the mediating role of absorptive capacity. The study is also among the pioneering studies in SMEs sector of Pakistan to analyze the role of absorptive capacity in the relationship between various dimensions of human capital and export performance.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2019-0198


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.


2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.


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.


2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.


2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


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