Intellectual capital in small and medium enterprises in Pakistan

Abstract

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.

Citation

Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J. and Hassan Md. Isa, A. (2015), "Intellectual capital in small and medium enterprises in Pakistan", Journal of Intellectual Capital, Vol. 16 No. 1, pp. 224-238. https://doi.org/10.1108/JIC-01-2014-0014