The impact of intellectual capital and knowledge management on competitive advantage

Abstract

This study aims to examine the relationship between intellectual capital and knowledge management with a competitive advantage in small and medium enterprises. Intellectual capital alludes to all the intellectual resources that the organisation claims or possesses, while knowledge management alludes to the procedures and practices that enable organisations to deal with their intellectual resources and accomplish knowledge based on a competitive advantage. This research uses quantitative and multiple regression methods to analyse research data. The statistical software used in SPSS version 24. The results of this study support previous research, in the sense that there is a significant relationship between Intellectual Capital and Knowledge Management on the competitive advantage. The implication of this research shows that the degree of Intellectual Capital can foresee the advancement capability of a company. The company must use Knowledge Management to increase Intellectual Capital and exploit the potential of knowledge. The results of this study indicate the benefits of developing innovations to illustrate the relevance of knowledge management in the exploitation of intellectual capital to improve the competitive advantage of the company.