Abstract

In order to compete and staying alive in current dynamic global competitive environment, SMEs in Malaysia must have not only competitive advantage, but sustainable competitive advantage. Sustainability will ensure SMEs to withstand market onslaught and adaptable to volatile market changes. Even though Malaysian SME performance is improving, it is still way below the target of 41% SME-GDP contribution and lowers than other neighbouring ASEAN countries like Singapore, Thailand and Indonesia. As a result, Malaysian SMEs can capitalize their valuable internal resources like intellectual capital to gain sustainable competitive advantage. In addition, intellectual capital can be used to pervade corporate entrepreneurship into usable concept in SMEs that can eventually promote sustainable competitive advantage. This paper presents the current research on intellectual capital and corporate entrepreneurship in achieving sustainable competitive advantage at SMEs in Malaysia. It focuses on two main questions: How intellectual capitals boost sustainable competitive advantage in SMEs? How Corporate Entrepreneurship enhance sustainable competitive advantage in SME?

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