Towards a better understanding of intellectual capital in Mexican SMEs

Abstract

Purpose

The purpose of this paper is to understand the characteristics of intellectual capital (IC) in Mexican small and medium enterprises (SMEs). Due to the shift from traditional factors of production to knowledge-based economy, an understanding of the role of IC has become crucial for SMEs to develop a competitive advantage.

Design/methodology/approach

This study takes an in depth look at the three components of IC: human, organizational, and external capital. In order to do so, a quantitative study on 445 SMEs was conducted based on data collected through an online survey. A structural equation model is proposed that is a fit with the reality of Mexican SMEs. Regional differences are highlighted by means of multigroup analysis.

Findings

The results suggest that the features of human and organizational capital are consistent with previous studies on SMEs in emerging economies. However, external capital shows some distinctive characteristics unique to Mexican context.

Practical implications

Implications for managers and policymakers are discussed, whereby an adaptation of programs and policies are required to fit the Mexican context at the national and regional levels.

Originality/value

To the best of the authors knowledge, this is the first study that observes the components of IC in Mexican SMEs.

Citation

Daou, A., Karuranga, E. and Su, Z. (2014), "Towards a better understanding of intellectual capital in Mexican SMEs", Journal of Intellectual Capital, Vol. 15 No. 2, pp. 316-332. https://doi.org/10.1108/JIC-08-2013-0092