Intellectual capital and SMEs’ performance: A structured literature review

Linking digital leadership and employee digital performance in SMEs in China: The chain-mediating role of high-involvement human resource management practice and employee dynamic capability

Background

In the digital era, the role of digital leadership is becoming increasingly prominent. However, the exploration of the alignment between digital leadership and high-involvement human resource management practices (HI-HRMPs) in influencing employee-based resources remains an overlooked research area among current scholars.

Objective

This study aims to analyze the influence of these elements on the digital performance of employees. Based on the Resource-Based View (RBV) and Dynamic Capability Theory (DCT), this research focuses on Chinese Small and Medium Enterprises (SMEs) and employs purposive sampling to select four representative regions in China (Shanghai, Guangzhou, Guizhou, and Anhui). The survey targeted employees within SMEs and was conducted using questionnaire surveys. Structural equation modeling (AMOS) is utilized for analysis.

Results

The findings indicate that: (1) digital leadership cannot directly influence employee digital performance and employee dynamic capability but can directly influence HI-HRMP; (2) HI-HRMP mediate the influence of digital leadership on employee digital performance, but employee dynamic capability cannot mediate the influence of digital leadership on employee digital performance; (3) HI-HRMP and employee dynamic capability play a chain mediating role between digital leadership and employee digital performance.

Conclusion

In the digital market, digital leadership improves employee digital performance by boosting HI-HRMP and enhancing employee dynamic capabilities. The findings support studies on practical applications and link between digital leadership and employee digital performance. The uniqueness of this study lies in applying HI-HRMP and employee dynamic capabilities as chain mediating variables in the digital market. This approach extends the application of HRMPs and dynamic capability theory, providing theoretical guidance and decision support for the digital operations of SMEs.

Sustainability in Small and Medium-Sized Enterprises: A Systematic Literature Review and Future Research Agenda

Main aim: This paper examines the main topics of research in the literature studying the topic of sustainability in small and medium-sized enterprises (SME), and aims at presenting a future research agenda. Method: We conducted a systematic literature review based on articles published between 2000 and 2020. From an initial set of 88 papers taken from WoS in the period under analysis, 42 papers were effectively analyzed. Main results: The results of an in-depth reading reveal four clusters representing the main topics of research in the field: sustainability and SMEs’ performance; green and environmental management issues; social and cultural issues and their impact on sustainability policies; values, skills, and capabilities. Key findings suggest that the following angles of research appear to be underexplored: theoretically grounded research; research using large samples; articles examining sustainability reporting; research looking into non-manufacturing sectors; work examining settings in developing countries; research undertaking international comparisons; articles exploring the complementarity between the literature on sustainability in SMEs and on family-owned businesses; and the influence of the social and cultural context on SMEs’ engagement with sustainability. Main contribution: This paper offers insights to academia, practitioners, and policy makers to help SMEs engaging with sustainability and may assist also the latter to develop strategies to improve SMEs’ social and environmental reporting. Given the current pandemic crisis, and the urgency for sustainable business practices, we expect to contribute to expanding knowledge in this field of research.

Entrepreneurial Leadership and Entrepreneurial Performance in Start-Ups: A Moderated Serial Mediation Model

The purpose of this study is to explore the impact of entrepreneurial leadership on entrepreneurial performance in start-ups. Specifically, a moderated serial mediation model was developed to investigate the mediating role of tacit knowledge sharing and job embeddedness and the moderating effect of career growth opportunities. Data was collected from 376 start-up employees via an online survey platform. Using hierarchical multiple regression and Hayes' PROCESS Macro by SPSS 21.0, and structural equation modeling by AMOS 23.0, support was found for both mediation and moderation effects. Results showed that entrepreneurial leadership significantly positively affects entrepreneurial performance by mediating with tacit knowledge sharing and job embeddedness. Moreover, career growth opportunities moderate the serial mediating effect of tacit knowledge sharing and job embeddedness between entrepreneurial leadership and entrepreneurial performance. This study provides theoretical guidance for entrepreneurial leadership to improve entrepreneurial performance.

Integrating knowledge management with intellectual capital to drive strategy: a focus on Italian SMEs

Purpose

This study aims to provide empirical evidence on the linkage between knowledge management (KM), intellectual capital (IC), planning effectiveness (PE) and innovation performance in Italian small and medium-sized enterprises (SMEs).

Design/methodology/approach

Survey data from 172 Italian SMEs was collected through an online questionnaire and analyzed using structural equation modeling (partial least square).

Findings

Results show that KM practices have a positive direct impact on each IC component which influences PE. Finally, structural capital and PE have a positive direct impact a firm’s ability to innovate.

Research limitations/implications

For researchers, this paper fills an important gap in the academic literature by conceptualizing and empirically testing the link between IC and PE. The main practical implication of this study is that developing intangible resources is of particular importance for strategic decision-making in SMEs. The focus on Italian SMEs limits the generalizability of the results.

Originality/value

This study provides empirical evidence on how KM and IC interact and mutually drive PE. Second, results shed light on the importance of IC to enhance a firm’s ability to reach its goals. Finally, the focus on SMEs enriches the extant literature in the field confirming the vital role of KM and IC in managerial decision-making.

Entrepreneurial Leadership and Employees’ Proactive Behaviour: Fortifying Self Determination Theory

The prevailing pandemic (COVID-19) has increased socioeconomic problems and caused psychological distress due to work uncertainty, specifically in emerging economies. Small and medium enterprises (SMEs) in emerging economies have been severely affected. Particularly, work uncertainty is becoming a hindrance towards proactive work behaviour (PWB) that can be improved by an effective entrepreneurial leadership role and proactive personality attribute. Based on fortifying self-determination theory, this research answered the question to what extent proactive personality moderates the relationship between work uncertainty and PWB and strengthens the relationship between entrepreneurial leadership and PWB. To empirically examine the study’s underlying theoretical framework, respondents were selected from SMEs working in Pakistan from the high-tech industry. Multisource data were accumulated from 420 workers and their leaders utilizing a two-wave, time-lagged research design. Conclusions revealed that entrepreneurial leadership first reduced individuals’ work uncertainty, which in turn, led to enhanced proactive work behaviour of employees. Furthermore, the results revealed that work uncertainty mediates the relationship between entrepreneurial leadership and proactive work behaviour. Moreover, proactive personality moderates the link concerning work uncertainty and proactive work behaviour, such that this association is significant only when proactive personality is low. Additionally, the moderated mediation analysis indicated that less proactive people, compared with their extraordinarily proactive colleagues, trusted entrepreneurial leadership to be more proactive in the workplace. These findings have important implications to induce PWB among employees.

Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan

This study focused on scrutinizing the influence of Enterprises Risk Management (ERM) on firm performance with a mediating role of Business Model Innovation (BMI). For the purpose, data from 228 Jordanian firms was collected and analyzed. The results indicated that the ERM practices have a significant influence on BMI and financial firm’s performance. The BMI significantly contributed to the financial and nonfinancial performance, whereas it displayed insignificant effects regarding environmental performance. The BMI fully mediated the relationship between ERM practices and financial performance, where a partial mediating effect was observed for the path between ERM practices and nonfinancial performance, while showed no mediating role between the ERM practices and environmental performance. Economies of countries like Jordan are hereby urged to implement the formal ERM practices and to financially educate their top management teams to apply the BMI to gain first-rate performance. This study also encourages the researchers from other countries to extend this model to their economies to unleash useful insights.

Intellectual capital of SMEs in Thailand: an employee behavioural measurement instrument

Purpose

Intellectual capital (IC) is an important factor to push and drive organisations to achieve competitive advantages and growth. This study aims to develop and test an instrument to measure IC for employee behaviour in the context of small and medium-sized enterprises (SMEs).

Design/methodology/approach

The measurement instrument was designed after assessing literature reviews on IC that provided a strong theoretical support for application of a specific set of items in the SME context. Instrument validity and reliability were tested for item-objective congruence by five experts. The results ranged between 0.8 and 1.0, with a reliability coefficient of 0.950. Exploratory factor analysis and confirmatory factor analysis were used to confirm construct validity between theoretical and empirical evidence. Data were collected from 240 hairdressers employed by SMEs in Thailand.

Findings

The results revealed that IC can be classified into two groups as human capital and relational capital. Constructs between theoretical concepts and empirical evidence gave values of χ2 = 42.336, df = 35, p = 0.184, χ2/df = 1.210, GFI = 0.972, AGFI = 0.938, RMSEA = 0.030 and SRMR = 0.018.

Research limitations/implications

Empirical findings were derived from a sample of 240 hairdressers. However, validation and reliability of the instruments require confirmation in various other contexts with a larger number of samples. This cross-sectional study identified the effects of IC in SMEs, thereby contributing to the ongoing debate regarding the determinants of research performance.

Originality/value

The IC instrument was determined as valid and fulfilled the knowledge gap concerning SMEs by facilitating future studies on boundaries with IC assessment spanning SME contexts. This instrumental support will assist researchers and academics to develop a more comprehensive understanding of IC and explore its potential in future research areas.