Impact of Intellectual Capital on the Performance of Small and Medium Enterprise (SMEs) in Kano State

This study investigates the impact of Intellectual Capital
(IC) human capital, structural capital, and relational capital
on the performance of small and medium enterprises
(SMEs) in Kano, Nigeria. The research employs a
quantitative approach, utilizing cross-sectional survey data
collected from SME owners and managers across
manufacturing and agricultural sectors. Using a quantitative
research approach. A stratified random sampling technique
was employed to ensure representation across
Manufacturing and Agricultural sectors totaling 389 SMEs,
and a sample size of 196 was determined using Krejcie and
Morgan’s (1970) table for accuracy. Data was gathered
through structured questionnaires designed to measure
intellectual capital and SME performance, with responses
recorded on a 5-point Likert scale. The data analysis was
conducted using Partial Least Squares Structural Equation
Modeling (PLS-SEM) to explore the relationships between
intellectual capital, and SME performance. The findings
indicated that human capital, structural capital and
relational capital underscore the importance of ensuring
that Intellectual capital build customer trust, leveraging
networks, supplier collaboration, innovation, knowledge
management. However, the strength of the effect varies
depending on industry type and market condition. The
proposed framework aims to provide insights into how
Kano SMEs can leverage intangible resources to achieve
sustainable competitiveness. We argue that upgrading
workforce skills, codifying processes/IT, and deepening
customer supplier partnerships can raise revenue growth,
productivity, and innovation outcomes among Kano SMEs.
Policy recommendations target talent development
incentives, SME process-digitization grants, and cluster-
based relationship platforms.