The Influence of Intellectual Capital on Knowledge Sharing: Small and Medium Enterprises’ Perspective

Abstract

Intellectual capital of the organization would determine the success of the organization itself if it is well capitalized. Knowledge sharing is a platform for the organization to further enhance productivity. Furthermore, knowledge sharing is always linked to small and medium enterprises (SMEs) due to their advantage of being small. Convenience sampling was used for manufacturing and services industries of SMEs. Data was tested using Structural Equation Modeling (SEM) to investigate the impact of intellectual capital on knowledge sharing. Measurement model and structural model were developed. Findings show that relational capital has a positive impact on knowledge sharing while human capital and structural capital has negative impact on knowledge sharing. All the intellectual capital dimensions contributed a significant impact on knowledge sharing. It is important for SMEs to invest and focus on knowledge sharing activity as it would create a platform for innovation, thus enhances the performance.