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Relationship between Intellectual Capital and Performance of Small and Medium Manufacturing Enterprises in Kenya

Author

Listed:
  • Muturi, Moses Murimi

    (Department of Business and Economics, Karatina University)

  • Beatrice Elesani Ombaka

    (Department of Human Resource Development, Karatina University)

  • Joseph Muchiri

    (Department of Business and Economics, Karatina University)

Abstract

Purpose: The purpose of the Study was to establish the relationship between intellectual capital and performance of small and medium manufacturing enterprises in Kenya. Design/methodology/approach: The study adopted positivist philosophy. The research designs were descriptive survey as well as explanatory research design. The target population consisted of all the small and medium manufacturing enterprises in Kenya with a sample of 183 respondents comprising of one respondent from each firm, being either the Managing director, General Manager, Production Manager or Strategic Manager. Data analysis was conducted using descriptive statistics and inferential analysis. Findings: The study concluded that intellectual capital had no significant influence on performance of small and medium in Kenya and therefore investment in intellectual capital should be economically justified. Research limitations/implications: The data used in the study was collected for a period of ten years only and the results may not be used to make long term inference regarding the relationship that exist between the study variables. Originality/value: The findings of this study significantly contribute to the existing pool of knowledge regarding the concept of intellectual capital and its implications on organizational performance. Scholars and other researchers would find the outcomes of this study relevant as reference material to advance in their research.

Suggested Citation

  • Muturi, Moses Murimi & Beatrice Elesani Ombaka & Joseph Muchiri, 2019. "Relationship between Intellectual Capital and Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 12(2), pages 22-32, December.
    • Handle: RePEc:tei:journl:v:12:y:2019:i:2:p:22-32
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    References listed on IDEAS

    as
    1. G Bharathi Kamath, 2010. "Intellectual Capital Efficiency Analysis of Indian Private Sector Banks," The IUP Journal of Bank Management, IUP Publications, vol. 0(3), pages 23-36, August.
    2. Samuel Kai Wah Chu & Kin Hang Chan & Ka Yin Yu & Hing Tai Ng & Wai Kwan Wong, 2011. "An Empirical Study of the Impact of Intellectual Capital on Business Performance," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 11-21.
    3. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
    4. Kraaijenbrink, Jeroen & Spender, JC & Groen, Aard, 2009. "The resource-based view: A review and assessment of its critiques," MPRA Paper 21442, University Library of Munich, Germany.
    5. Weslynne Ashton & Suzana Russell & Elizabeth Futch, 2017. "The adoption of green business practices among small US Midwestern manufacturing enterprises," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(12), pages 2133-2149, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intellectual capital; Performance; Small and Medium Manufacturing Enterprises;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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