EXAMINING THE EFFECTS OF INTELLECTUAL CAPITAL ON THE PERFORMANCE OF MALAYSIAN FOOD AND BEVERAGE SMALL AND MEDIUM-SIZED ENTERPRISES

Intellectual capital is an important dimension of entrepreneurship orientation that highly contributes in the performance of the small and medium-sized enterprises (SMEs). The measurements of intellectual capital more concern about employees' knowledge, trademarks, patents, compensation and rewards. This study aims to examine the relationship between knowledge management and organizational performance among Malaysian food and beverage SMEs. It also identifies whether or not protecting patents and trademarks positively contributes in organizational performance. The primary data was collected through quantitative method and 262 questionnaire administered within food and Beverage SMEs in the Malaysian State of Selangor. The findings indicated a positive relationship between knowledge management and organizational performances. A good management of employees' knowledge adds value to the firms and make them competitive in the market economy. Apart from knowledge, the study found that protecting patents and trademarks can positively contribute in the performance of SMEs. Also, the study identified moderate positive correlations between compensation and reward with organizational performance. To improve the performance of the firms, SMEs has to adopt effective techniques such as compensation and reward that encourage employees to sincerely perform their tasks and utilize their knowledge and effort for the purpose of profit maximization