Top management characteristics and intellectual capital performance in small Italian companies

Purpose This study aims to explore the relationship between top management characteristics and intellectual capital (IC) performance of small companies. Design/methodology/approach This research offers an empirical investigation into a unique sample of 135 small Italian companies, which have been recognised as meeting legal values. This study uses a regression analysis to test whether CEO age, CEO connections and management team size affect IC performance. Findings Companies managed by CEOs with higher levels of connections and with a greater number of managers exhibit improved IC performance. In addition, this study provides evidence that companies with older CEOs demonstrate better IC efficiency. Research limitations/implications This study does not consider all top management-specific factors and incentives that may affect IC performance and uses a limited sample of companies. Practical implications This study suggests that increased network activity and larger management teams are beneficial for small companies to improve the efficiency of IC used. Originality/value The work offers novel empirical evidence to understand what governance and management-specific factors affect the efficiency in managing IC assets in small companies.