KNOWLEDGE MANAGEMENT AND FIRM PERFORMANCE IN SMEs: THE ROLE OF SOCIAL CAPITAL AS A MEDIATING VARIABLE

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Salina Daud
Wan Fadzilah Wan Yusoff

Abstract


Knowledge and intellectual capital are increasingly recognised as the main sources of competitive advantages in the knowledge-based economy. Businesses, particularly those that are small- or medium-sized, find that they need to give increasing attention to knowledge management and social capital — social capital being a mediating variable between knowledge management processes and firm performance. This study examined knowledge management, social capital and firm performance through the use of a questionnaire directed to small- and medium-sized enterprises — all of them situated within the Multimedia Super Corridor in the Klang Valley of Malaysia. The results based on 289 usable questionnaires demonstrated the following: (i) knowledge management processes influence social capital positively; (ii) social capital enhances firm performance; and (iii) social capital is a mediator between knowledge management processes and firm performance. The research demonstrated that knowledge management processes and social capital can be integrated to enhance firm performance.


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How to Cite
Salina Daud, & Wan Fadzilah Wan Yusoff. (2010). KNOWLEDGE MANAGEMENT AND FIRM PERFORMANCE IN SMEs: THE ROLE OF SOCIAL CAPITAL AS A MEDIATING VARIABLE. Asian Academy of Management Journal, 15(2), 135–155. https://ejournal.usm.my/aamj/article/view/aamj_vol15-no-2-2010_2
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Original Articles