Intellectual Capital and Corporate Performance in Knowledge-Intensive Smes

Abstract

Purpose: In recent years a significant number of Intellectual Capital (IC) metrics has been developed and applied in many organizations. However, there is still a strong need to specify the relations among the different categories of intellectual assets that exist in the context of a SME, and to determine the way these assets affect financial performance. This paper has a dual scope; firstly, to specify these relations, and, secondly, to explore the impact of IC on corporate performance.

Methodology/Approach: Our hypotheses are tested through a survey conducted on Greek knowledge-intensive SMEs of the service sector. We combined firms' perceptions regarding Intellectual Capital categories, which were measured through the answers given on a structured questionnaire, and accounting data that was gathered from financial databases.

Findings: Our findings indicate that the interaction of certain categories of intellectual assets in SMEs is in some aspects different from the pattern evidenced in other surveys that analyze large companies. Also, our empirical data provides supportive evidence that certain categories of intellectual capital positively contribute to corporate performance.

Keywords: Intellectual Capital, Small and Medium Sized Enterprises, Corporate Performance, Human Capital, Organizational Capital, Customer Capital

JEL Classification: M41, M10, M13, M19, M50