Impact of intellectual capital on firm performance: A study of SME’s in Punjab Bharti1, Dr. Dhiman Babli2 1Research Scholar, Mittal School of Business, Lovely Professional University, Punjab, Email id: kambojbharti5@gmail.com 2Associate Professor and HOD-Finance, Mittal School of Business, Lovely Professional University, Punjab, babli.dhiman@lpu.co.in Online published on 2 April, 2019. Abstract The Purpose of this paper is to measure the relationship between intellectual capital and firm performance in SME's in Punjab. The analysis is based on empirical evidence collected from 945 respondents representing intellectual capital in SME's. Purposive sampling technique was used in the study. The study targeted eight manufacturing sectors of Punjab Viz. food product and beverages, wearing apparels, textile, rubber and plastic, furniture, fabricated metal products, machinery and equipment's and non-metallic products and 150 SME's were selected from each sector. Self-structured questionnaire was used in the present study. The data was collected from the SME's owner and managers. The hypothesis was tested using exploratory factor analysis (EFA) and structural equation modeling (SEM). The results of the study indicate that the intellectual capital positively affects the firm performance. The study will benefit the researchers, academicians and SME's entrepreneurs in improving the firm performance using the dimensions of intellectual capital. The findings serve as a useful input for SME's owners, academician and researchers to manage the intellectual capital in SME's. This study also gives valuable information about the new dimensions of Intellectual capital and its effect on SME's performance. This is the first empirical study conducted on SME's in manufacturing sector. In this paper all the dimension of Intellectual capital is integrated and tests the effect of these dimensions on firm Performance in Punjab. Top Keywords Intellectual Capital, Firm Performance, Structural equation modeling, Small-to Medium-sized Enterprises, Manufacturing industry. Top |