Enhancing SME Performance through Intellectual Capital: A Systematic Review

Nimesh Prasad Adhikary; Abhijit  Ghosh

doi:10.64297/jmrsmet.v1i2.27

Authors

Nimesh Prasad Adhikary Author https://orcid.org/0009-0001-9613-3195
Abhijit Ghosh Lincoln University College, Faculty of Business and Accounting, 47301 Petaling Jaya, Selangor D. E., Malaysia Author

DOI:

https://doi.org/10.64297/jmrsmet.v1i2.27

Keywords:

Human Capital, Intellectual Capital, Performance, Relational Capital, SME, Structural Capital

Abstract

In this study, we examine the impact intellectual capital (IC) has on Small and Medium-sized Enterprises (SMEs) by undertaking a systematic review of prior research. Literature on SMEs and individual fractions of intellectual capital such as human, structural, relational and intermediating predominant economic performance vary at best. The existing gap is then filled by the literature review.

The results have revealed the existence of a significant positive relationship between IC and performance in SMEs in multiple settings. Human capital shows a direct effect, whereas structural and relational capital have a more indirect influence on performance but through innovation capability, absorptive capacity and customer relations. Implications are made for SME managers to invest in human capital development, utilize structural capital for efficiency and develop relational capital to create market advantage.

Drawing on evidence from cross-sectoral and cross-country studies, this review provides a broader understanding of IC in SMEs, and it suggests directions for future research.

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