Intellectual Capital Statement (INCAS). An Assessment Instrument for Malaysian Small and Medium Enterprise (SMEs)

Abstract

Intellectual Capital (IC) is a knowledge-base equity of organizations has attracted many researcher during last decade. IC is based on the soft assets or tangible assets of the organizations that will help for organizations to create value added products and services. IC is also being increasingly viewed as a key determinant of business performance.Therefore organizations need to identify the analysis of the IC assessment practices that may be the drivers of the traditional indicators of business success. The purpose of this paper is to address this gap by investigating the effects of Intellectual Capital Statement (InCas) and its components on business performance in Malaysian Small and Medium Enterprise (SMEs).The study will be using a triangulation method that involves questionnaire, interview and expert opinion. The questionnaire will be randomly distributed to SMEs. These findings will help SMEs to utilize more of their internal resources to compete and survive the intensely competitive business environment. The implementation of InCaS from the findings of this research may contribute a new paradigm in the field of business strategies. This study is considered a first step in the knowledge-based research concerning intellectual capital in the Malaysian SMEs.