Perception of Intellectual Capital and Financial Innovation on SME Food Industry Performance in Malaysia

Abstract

The purpose of this study is to investigate the moderating influence that Financial Innovation (FI) plays on Intellectual Capital (IC) in order to gauge the commercial success of small and medium-sized food businesses. The aim of implementing IC in SMEs is to improve both the performance of the business and the value of the organisation. This study focuses on the moderating influence of FI in the food sector SME business performance environment in order to generate new understanding regarding the relationship between IC and business performance. Methods such as quantitative analysis and multiple regression are utilised in this study to analyze the research data. The results of this study provide credence to the conclusions of other studies by suggesting that there is a strong association between IC and the business success of SMEs in the food industry. Moreover the relationship between IC and business performance is moderated by FI. The significance of this research lies in the fact that it demonstrates FI's capacity to predict a company's future growth potential. According to the findings of this study, FI is a major source of information and strategies that teach business owners how to improve their company's performance and remain competitive in comparison to their rivals.