The role of intellectual capital on entrepreneurial opportunity recognition among SMEs in the Sultanate of Oman

Author:

Rahman Syed Abidur,Khan Golam Mostafa,AlAbri Salem,Taghizadeh Seyedeh Khadijeh

Abstract

PurposeThis study aims to investigate the role of the components of intellectual capital (IC) on entrepreneurial opportunity recognition among small and medium enterprises (SMEs) in the Sultanate of Oman. The interrelationships of these components are also examined.Design/methodology/approachThe study used quantitative research methods. Data were collected using structured questionnaires from a sample of 347 respondents from SMEs operating in Oman. Structural equation modeling was employed to examine the hypotheses using partial least square technique.FindingsThe analysis results demonstrate that structural capital, relational capital and spiritual capital have significant relationships with entrepreneurial opportunity recognition. Meanwhile, human capital has no relationship with either entrepreneurial opportunity recognition or spiritual capital. Intriguingly, significant interrelationships are observed among IC's components.Practical implicationsThis study offers useful managerial implications for the related parties: firms, public institutions and other stakeholders. The findings could be a guideline for SME managers/owners to recognize the right entrepreneurial opportunity.Originality/valueTo the best of our knowledge, this study is the first to reveal the relationships between the tripartite model of IC and entrepreneurial opportunity recognition. This study is also the first to test the interrelationship of spiritual capital on other intellectual components.

Publisher

Emerald

Subject

General Business, Management and Accounting,Education

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