ROLE OF TECHNOLOGICAL ORIENTATION ON EFFECT OF INTELLECTUAL CAPITAL ON SMALL AND MEDIUM ENTERPRISES (SMES) PERFORMANCE

Abstract

Most SMEs in Nigeria die within their first five years of existence, a smaller percentage goes into extinction between the sixth and tenth year while only about five to ten percent survive, thrive and grow to maturity, the death of the businesses was largely caused by inadequate intellectual capital and technological orientation. The objective of the study is to examine the relationship between intellectual capital and SMEs performance with the moderating role of technological orientation. The study obtained data through a survey questionnaire. The researcher employed Statistical Package for the Social Sciences (SPSS) version 18 for preliminary analyses. For main analysis, the study employed partial least squares (PLS) path modelling. The findings of the study revealed that intellectual Capital has significant effect on Small and Medium Enterprises (SMEs) performance, technological orientation significantly moderate the relationship between intellectual capital and Small and Medium Enterprises (SMEs) performance. The study recommended that Owner/managers of SMEs should possess technical, interpersonal, and conceptual skills to effectively plan, lead, organize and control the enterprise effectively leading to increased performance. The study concluded that intellectual capital has significant effect on SMEs performance and technological orientation significantly moderates the relationship between intellectual capital and SMEs performance.