Open AccessPARTIAL LEAST SQUARE ANALYSIS ON MICRO ENTERPRISES’ INTELLECTUAL CAPITAL AND PERFORMANCE: THE MEDIATING EFFECT OF TACIT KNOWLEDGE SHARING
Author(s) -
Rohagah,
T. Ramayah,
Rahimah Sarmidy
Publication year - 2018
Publication title -
journal of applied structural equation modelling
Language(s) - English
Resource type - Journals
ISSN - 2590-4221
DOI - 10.47263/jasem.2(2)06
Subject(s) - intellectual capital , tacit knowledge , business , knowledge management , knowledge sharing , industrial organization , capital (architecture) , structural capital , marketing , human capital , individual capital , financial capital , economics , computer science , market economy , archaeology , finance , history
Micro enterprises formed the majority of business establishments in Malaysia and play an important role in the business ecosystem. There are numerous studies of intellectual capital on large organizations and small and medium enterprises, however no study has been carried out on micro enterprises. The findings of the partial-least square analysis of one hundred and six micro enterprises found that intellectual capital has a significant relationship to organizational performance. In addition, the relationship between intellectual capital and organizational performance was significantly influenced by tacit knowledge sharing. In particular, tacit knowledge sharing proves to be extremely relevant when it comes to reinforcing the intellectual capital on the performance of micro enterprises in Malaysia. Limitations and implications for future studies are discussed.