Identifying Importance-Performance Matrix Analysis (IPMA) of intellectual capital and Islamic work ethics in Malaysian SMES

Abstract

The creation of intangible assets such as intellectual capital and Islamic ethics are crucial to cope with firm competitiveness issues. Five components of intellectual capital (human capital, organizational capital, relational capital, spiritual capital and technological capital) and Islamic work ethics were identified to model their impact on SME business performance in Malaysia. In doing so, survey questions from previous studies were adopted and customized to collect data. The sample of 445 SME entrepreneurs was utilized and the data were analyzed using SmartPLS 3.2.6. The results of the study revealed that human capital, organizational capital, technological capital and Islamic work ethics significantly influenced business performance. Then, this study explored the use of the Importance-Performance matrix analysis to identify priority factors that can be enhanced to increase business performance.

Keywords: Importance-Performance Matrix Analysis (IPMA); SME; intellectual capital; Islamic work ethics