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Jurnal Ekonomi Malaysia

57 (2) 2023 63 – 79

Effect of Intellectual Capital on SME Performance: Role of Social Capital

Department of Economics and Finance Studies
Faculty of Business Management
University Teknologi MARA
Campus Puncak Alam
42300 Puncak Alam, Selangor, MALAYSIA.

jamieniz@uitm.edu.my

Department of Human Resource Management
Faculty of Business Management
University Teknologi MARA
Campus Bandaraya Melaka
75350 Melaka, MALAYSIA.

idris424@uitm.edu.my

Department of Economics and Finance Studies
Faculty of Business Management
University Teknologi MARA
Campus Puncak Alam
42300 Puncak Alam, Selangor, MALAYSIA.

rahim474@uitm.edu.my

Abstract

The study examines the effect of intellectual capital (IC) on Small Medium Enterprises (SMEs) performance. It further investigates social capital’s role as the moderator on the relationship between IC and SME performance. A purposive sampling strategy was utilized to develop the study’s sample size. Out of 500 structured questionnaires distributed to the registered SME owners or managers in Malaysia, only 266 were usable. The Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to analyze the research model. The components of IC namely human capital, structural capital, and social capital have been shown to improve SMEs’ performance. The results further found that social capital helps to enhance the influence of human capital on SME performance. This contributes to the theoretical advancement of the Resource-Based View by studying its application in forecasting outstanding performance among SMEs through incorporating the social theory for the moderator variable. SMEs should protect their IC and promote the practice of recognizing intangible assets, particularly the skills and abilities of their personnel.

Keywords

human capital; Intellectual capital; resource-based view; SME performance; Social capital

JEL Codes

D21, D24, D91, L10, M10, M13
Jurnal Ekonomi Malaysia http://dx.doi.org/10.17576/JEM-2023-5702-05
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Bibliography

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Hashim, M. J., Osman, I., & Khamis, M. R. (2023). Effect of Intellectual Capital on SME Performance: Role of Social Capital. Jurnal Ekonomi Malaysia, 57(2), 63–79. Jurnal Ekonomi Malaysia http://dx.doi.org/10.17576/JEM-2023-5702-05

@article{hashim2023effect,
  title={Effect of Intellectual Capital on SME Performance: Role of Social Capital},
  author={Hashim, Maryam Jameelah and Osman, Idris and Khamis, Mohd Rahim},
  journal={Jurnal Ekonomi Malaysia},
  volume={57},
  number={2},
  pages={63—79},
 

year={2023},
}

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