Can intellectual capital of SMEs help in their sustainability efforts

Small and medium enterprises due to their smaller size and resources face numerous challenges to sustain themselves. In the face of mounting pressures from the competitors, SMEs need to position themselves in such a way so as to cater for the changing customer needs and expectations of their custome...

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Main Authors: Ismail, Kamariah, Haider, Maqsood, Shoaib Akhtar, Chaudhry, Abubakar, Mohammed Ndaliman, Hussain, Jawad
Format: Article
Published: Macrothink Institute 2015
Subjects:
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author Ismail, Kamariah
Haider, Maqsood
Shoaib Akhtar, Chaudhry
Abubakar, Mohammed Ndaliman
Hussain, Jawad
author_facet Ismail, Kamariah
Haider, Maqsood
Shoaib Akhtar, Chaudhry
Abubakar, Mohammed Ndaliman
Hussain, Jawad
author_sort Ismail, Kamariah
collection ePrints
description Small and medium enterprises due to their smaller size and resources face numerous challenges to sustain themselves. In the face of mounting pressures from the competitors, SMEs need to position themselves in such a way so as to cater for the changing customer needs and expectations of their customers. To achieve this, developing the internal knowledge and knowing capabilities becomes imperative. The present study is an attempt to investigate the role of intellectual capital towards sustainability. Sample consisted of SMEs selected from the database of Federation of Malaysian Manufacturers. Self-administered questionnaires were distributed to 335 respondents with a response rate of 51%. The results of the study indicate that intellectual capital is having a significant relationship as well as influence on sustainability of SMEs. Further, multiple regression results reveal that knowledge and innovativeness dimensions of intellectual capital are more influential in creating sustainability for small enterprises. However, employee competences, intellectual agility and skills have been found to insignificant in Malaysian context. The results reveal that if intellectual capital of the employees is not optimally harnessed, it would lead to failure. The study is significant not only for the owners/managers of SMEs but also for the policy makers. Future directions are also provided for researchers interested in the area.
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spelling utm.eprints-601352022-04-10T06:42:24Z http://eprints.utm.my/60135/ Can intellectual capital of SMEs help in their sustainability efforts Ismail, Kamariah Haider, Maqsood Shoaib Akhtar, Chaudhry Abubakar, Mohammed Ndaliman Hussain, Jawad HD28 Management. Industrial Management Small and medium enterprises due to their smaller size and resources face numerous challenges to sustain themselves. In the face of mounting pressures from the competitors, SMEs need to position themselves in such a way so as to cater for the changing customer needs and expectations of their customers. To achieve this, developing the internal knowledge and knowing capabilities becomes imperative. The present study is an attempt to investigate the role of intellectual capital towards sustainability. Sample consisted of SMEs selected from the database of Federation of Malaysian Manufacturers. Self-administered questionnaires were distributed to 335 respondents with a response rate of 51%. The results of the study indicate that intellectual capital is having a significant relationship as well as influence on sustainability of SMEs. Further, multiple regression results reveal that knowledge and innovativeness dimensions of intellectual capital are more influential in creating sustainability for small enterprises. However, employee competences, intellectual agility and skills have been found to insignificant in Malaysian context. The results reveal that if intellectual capital of the employees is not optimally harnessed, it would lead to failure. The study is significant not only for the owners/managers of SMEs but also for the policy makers. Future directions are also provided for researchers interested in the area. Macrothink Institute 2015 Article PeerReviewed Ismail, Kamariah and Haider, Maqsood and Shoaib Akhtar, Chaudhry and Abubakar, Mohammed Ndaliman and Hussain, Jawad (2015) Can intellectual capital of SMEs help in their sustainability efforts. Journal of Management Research, 7 (2). pp. 82-97. ISSN 1941-899X http://dx.doi.org/10.5296/jmr.v7i2.6930
spellingShingle HD28 Management. Industrial Management
Ismail, Kamariah
Haider, Maqsood
Shoaib Akhtar, Chaudhry
Abubakar, Mohammed Ndaliman
Hussain, Jawad
Can intellectual capital of SMEs help in their sustainability efforts
title Can intellectual capital of SMEs help in their sustainability efforts
title_full Can intellectual capital of SMEs help in their sustainability efforts
title_fullStr Can intellectual capital of SMEs help in their sustainability efforts
title_full_unstemmed Can intellectual capital of SMEs help in their sustainability efforts
title_short Can intellectual capital of SMEs help in their sustainability efforts
title_sort can intellectual capital of smes help in their sustainability efforts
topic HD28 Management. Industrial Management
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