THE IMPACT OF INTELLECTUAL CAPITAL, KNOWLEDGE MANAGEMENT ON FIRM PERFORMANCE IN THE CONTEXT OF MALAYSIAN SMEs

Purpose: The main purpose of this conceptual paper is to review the impact of two (2) main components of intellectual capital, which are (human capital and structural capital) and knowledge management, on the performance of manufacturing SMEs operating in Malaysia. Design/Methodology: The paper's framework was developed based on a systematic review of past literature which has not been tested yet. The present conceptual paper suggests future researchers to test the present framework in the manufacturing sector in Malaysia using a quantitative approach. Findings: The present paper found the important influence of the study's variables on firm performance. However, a deep understanding provided of how three (3) variables affect SMEs' performance in Malaysia. Originality: The paper emphasizes the critical value of intellectual capital and knowledge management for SMEs owner/managers consideration when acting on behalf of their company; failing which the SMEs could experience poor performance. Resource-Based view (RBV) and knowledge-based view (KBV) theories was used to underlie the conceptual framework. In addition, come implications of this conceptual model for theory and practice are discussed.