Role of Intellectual Capital on the Organizational Performance of Electrical and Electronic SMEs in Pakistan

Intellectual capital is a prime strategic asset for organizations in a knowledge based economy. In a knowledgebased economy it is indispensible for organizations to indentify, maximize and utilize their intellectual capital tostay in a competitive environment. The main crux of this paper is to examine the relationship of intellectualcapital with organizational performance of electrical and electronics SMEs operating in manufacturing sector inPakistan. This research is conducted in two cities of “Golden Tri Angle” namely Gujrat and Gujranwala inPakistan. Convenience sampling technique was used for data collection. Structured questionnaires wereadministrated as a research instrument to collect data from respondents. Pearson Correlation and MultipleRegression were used to test the relationship between components of intellectual capital and organizationalperformance. This is the first study that focused on small and medium enterprises in Pakistan to examine therelationship of intellectual capital with organizational performance.