A Descriptive Study of Intellectual Capital in SMEs Operating in Electrical and Electronics Manufacturing Sector in Malaysia

A Descriptive Study of Intellectual Capital in SMEs Operating in Electrical and Electronics Manufacturing Sector in Malaysia

Muhammad Khalique (Universiti Malaysia Sarawak, Malaysia), Jamal Abdul Nassir bin Shaari (Universiti Malaysia Sarawakm, Malaysia) and Abu Hassan Md. Isa (Universiti Malaysia Sarawak, Malaysia)
DOI: 10.4018/978-1-4666-6457-9.ch001
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Abstract

The aim of this chapter is to find the existence of the components of intellectual capital in SMEs operating in the electrical and electronics manufacturing sector in Malaysia. To find the objective of this study, a valid research instrument was established to conduct a survey of 237 from 77 SMEs operating in Penang and Selangor. A descriptive statistical analysis was conducted to explore the existence of the six components of intellectual capital, namely human capital, customer capital, structural capital, social capital, technological capital, and spiritual capital in SMEs operating in the electrical and electronics manufacturing sector. The results reveal that the respondents of Malaysian SMEs perceive that the six components of intellectual capital play a pivotal role in competitive advantage and superior performance.
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2. Intellectual Capital Concept: Main Components

The term “intellectual capital” was first introduced by John Kenneth Galbraith in 1969. Intellectual capital represents more than just “intellect as pure intellect” but also includes a degree of “intellectual action”. According to this concept, intellectual capital is not only a fixed intangible asset but also ideological progression as a means to an end (Feiwal, 1975; Ding & Li, 2010). Stewart (1997) argued that intellectual capital is a package of intellectual material, like education, knowledge, information, expertise, intellectual property and experience that can be put to use to create wealth in an organization.

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