Article 2023

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

AM
Arshad, Muhammad Zulqarnain
 AD
Arshad, Darwina Ahmad
 LH
Lamsali, Hendrik Bin
 IA
Ibrahim Alshuaibi, Ahmad Said
 AM
Alshuaibi, Mohammad Said Ibrahim
 AG
Albashar, Gadah
 SA
Shakoor, Awais
 FC
Fatt Chuah, Lai Fatt
Journal of Cleaner Production
Journal · Vol. 417 · Art. 137884
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. © 2023 Elsevier Ltd

Keywords

Author Keywords

Sustainability innovation capability Intellectual capital SME performance Strategic resources

Index Keywords

Sustainable development Knowledge management Performance small and medium-sized enterprise Enterprise IS Enterprise performance External environments Innovation capability Intellectual capital Resource alignment Small and medium-sized enterprise performance Strategic resource
Author Affiliations
School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia
Technology and Supply Chain Excellent Institute (TeSCE), College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia
Institute of Management Technology, Dubai, United Arab Emirates
Department of Zoology, College of Sciences, Riyadh, Riyad, Saudi Arabia
Hawkesbury Institute for the Environment, Penrith, NSW, Australia
Faculty of Maritime Studies, Universiti Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia
Funding & Acknowledgements
Grant: RSP-2023/95
Funding text 1: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project ( RSP-2023/95 , King Saud University, Riyadh, Saudi Arabia ); Funding text 2: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project (RSP-2023/95, King Saud University, Riyadh, Saudi Arabia)
Universiti Utara Malaysia, UUM
Funding text 1: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project ( RSP-2023/95 , King Saud University, Riyadh, Saudi Arabia ); Funding text 2: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project (RSP-2023/95, King Saud University, Riyadh, Saudi Arabia)
King Saud University, KSU
Funding text 1: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project ( RSP-2023/95 , King Saud University, Riyadh, Saudi Arabia ); Funding text 2: The authors are thankful to Universiti Utara Malaysia and SMEDA, Pakistan for the support of this study. The authors would like to extend their sincere appreciation to the acknowledgment; research supporting project (RSP-2023/95, King Saud University, Riyadh, Saudi Arabia)
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