The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

Abstract

Purpose

The objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country.

Design/methodology/approach

The sample consisted of 259 industrial SMEs from the Cordoba, Argentina. The data were analyzed by partial least squares–structural equation modeling (PLS–SEM).

Findings

The study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products. Structural capital is the component that has the greatest effect on innovation. It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.

Research limitations/implications

The research exposes limitations that uncover a path for future. First, the work uses as the only source of information, the consultation at the highest level of the company. Second, the study covered only industrial companies. Future studies should focus on other sectors and countries.

Practical implications

The results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization.

Originality/value

The value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area.

Citation

Beltramino, N.S., Garcia-Perez-de-Lema, D. and Valdez-Juarez, L.E. (2022), "The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country", Journal of Intellectual Capital, Vol. 23 No. 4, pp. 741-764. https://doi.org/10.1108/JIC-07-2020-0234