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Article ; Online: Strategic resources alignment for sustainability: The impact of innovation capability and intellectual capital on SME's performance. Moderating role of external environment

Arshad, Muhammad Zulqarnain / Arshad, Darwina / Lamsali, Hendrik / Ibrahim Alshuaibi, Ahmad Said / Ibrahim Alshuaibi, Mohammad Said / Albashar, Gadah / Shakoor, Awais / Chuah, Lai Fatt

Journal of Cleaner Production. 2023 Sept., v. 417 p.137884-

2023  

Abstract: Small and medium-sized enterprises (SMEs) are vital to the growth and development of a country. This study examined how innovation capability, intellectual capital and SME performance are related. Cross-sectional questionnaires were given to 379 ... ...

Abstract Small and medium-sized enterprises (SMEs) are vital to the growth and development of a country. This study examined how innovation capability, intellectual capital and SME performance are related. Cross-sectional questionnaires were given to 379 Pakistani textile SMEs. Only 318 surveys were considered reliable enough to proceed with the investigation. To test each hypothesis and assess the validity and reliability of the measurement model, this study used the PLS-SEM (Smart-PLS 4.0) technique. The findings indicate that the performance of SMEs is significantly impacted by their innovation capability and intellectual capital. Based on the results of this study, it can be concluded that the innovation capability and intellectual capital of an organization are significantly impacted by the external environment. The analysis indicates that intangible resources, specifically innovation capability and intellectual capital, are crucial determinants of sustainable growth and are considered internal capabilities of the firm. This study provides valuable insights and knowledge for both governmental entities and SMEs. In order to boost Pakistani SMEs' performance and build a sustainable economy, these insights can be incorporated into government programs and guidelines. This study contributed to the body of knowledge by assessing internal capacities (innovation capability and intellectual capital) in the setting of SMEs with the moderating influence of the external environment, as the majority of studies on these variables focused on large enterprises.
Keywords fabrics ; growth and development ; human capital ; models ; sustainable development ; Strategic resources ; Innovation capability ; Intellectual capital ; SME performance ; Sustainability
Language English
Dates of publication 2023-09
Publishing place Elsevier Ltd
Document type Article ; Online
ISSN 0959-6526
DOI 10.1016/j.jclepro.2023.137884
Database NAL-Catalogue (AGRICOLA)

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