UNLEASHING THE IMPORTANCE OF INTELLECTUAL CAPITAL TO ACHIEVE COMPETITIVE ADVANTAGE IN SMES: THE MEDIATING ROLE OF ENTREPRENEURIAL ORIENTATION

Vikram Jeet () and Inass Salamah Ali ()
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Vikram Jeet: University of Jeddah, College of Business, Department of Business Administration, Jeddah, Saudi Arabia
Inass Salamah Ali: Dar-Al-Hekma University, College of Business, Jeddah, Saudi Arabia

Management Research and Practice, 2023, vol. 15, issue 3, 44-54

Abstract: Taking into account the mediating effect of Entrepreneurial Orientation (EO), this study examines the connection between Intellectual Capital (IC) and Competitive Advantage (CA). Given the present economic situation, SMEs ought to implement the necessary measures to develop product distinctiveness, in which EO may play a crucial role. In the present study, data analysis has been performed on 209 participants from the Indian sports goods manufacturing units (SMEs). Using Hayes's process macro, we found evidence supporting the hypothesis that Intellectual Capital has a positive significant relationship with competitive advantage. Entrepreneurial orientation has a significant positive relationship with a competitive advantage and it fully mediates the relationship between intellectual capital and competitive advantage. The study found that intellectual capital helped employees of SMEs to create processes and products that could not be easily replicated by competitors, allowing the company to attain competitive advantage. Organisational entrepreneurship may play a significant role since entrepreneurship is a practical approach that organizations can embrace. In the future, the moderation of organizational capital needs to test for this model so that the contribution of organizational values and background can be explained.

Keywords: Intellectual Capital; Competitive Advantage; Entrepreneurial Orientation; SMEs (search for similar items in EconPapers)
Date: 2023
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