Perception of Intellectual Capital and Financial Innovation on SME food industry performance in Malaysia

Abstract

This study aims to examine the moderating role of Financial Innovation (FI) on Intellectual Capital (IC) to measure the business performance of SMEs food industry. IC is implemented in SME firms to enhance business performance and organisational value. In order to create new knowledge in the context of IC and business performance of the SME food industry, this study focuses on the moderating effect of FI. This research uses quantitative and multiple regression methods to analyse research data. The findings of this study support previous research, indicating that there is a significant relationship between IC and SME food industry business performance, moderated by FI. The implication of this research shows that FI can foresee the advancement capability of a company. The results of this study indicate that FI provides important information and methods that would help entrepreneurs how to enhance their business performance and be competitive compared to their competitors.