Exploring The Perceived Practices Of Intellectual Capital Within Smes

Abstract

Since Galbraith introduced the concept of intellectual capital in 1969, its importance for a firm's survival, growth, performance, competitiveness, and innovativeness has been highlighted by scholars (Porter and Millar, 1985; Kogut and Zander, 1996; Davenport, 1999). Many models have been proposed over the years to measure the effectiveness of IC and manage it effectively. However, as intellectual capital comprises intangible and unstable assets, applying a specific quantitative model to measure it can be challenging. Therefore, managers' perceptions of their businesses' intellectual capital are crucial. To gain insights into these perceptions, semi-structured interviews were conducted with managers to understand their views on their organisations' intellectual capital (IC). The data collected from these interviews were then analysed qualitatively using both content and thematic analysis methods. The findings are particularly interesting, revealing that although managers recognize the importance of IC in their businesses, they often lack knowledge about the concepts or models to measure and manage it effectively. This study contributes to predicting a framework from the manager’s perspective for identifying themes related to measuring IC and solidifying existing theories used to analyse intellectual capital