Intellectual capital and Organization performance in the manufacturing sector of Mexico

Purpose The purpose of this paper is to empirically test the relationship between the various components of intellectual capital (IC) (human, organizational, technological and relational) and organization performance (OP) in small and medium enterprises (SMEs) in the manufacturing sector in the region of Baja California, Mexico. Design/methodology/approach A sample of 127 surveys was applied to CEOs, CFOs or managers of SMEs. In order to test the research hypotheses, a multiple regression was run prior to the development of exploratory and confirmatory factor analyses. Findings The results showed that the four capitals have a positive influence on OP; the evidence is consistent with several studies in Mexico and abroad. Furthermore, knowledge management was introduced as a moderating variable and the result was that it negatively moderates the relationship between IC and OP. Research limitations/implications The main limitation of this research is that it only focused on one region and a single sector in Mexico. However, future research at the national level might verify the hypotheses tested. Originality/value This research contributes to enrich the theoretical framework for the Mexican context regarding IC; additionally, it allows contrasting the evidence with other studies at national and international levels.