The Influence of Organizational Capabilities, Intellectual Capital, and Entrepreneurial Leadership on Micro-Enterprises Performance

Ahmad Raflis Che Omar; Suraiya Ishak; Azima Abdul Manaf

The performance of micro-enterprises is anticipated to benefit from the development of superior strategic assets, as opposed to a reliance on typical tangible assets. Intellectual capital, entrepreneurial leadership, and organizational capabilities are key factors that may potentially influence the performance of micro-enterprises, particularly within the framework of the Resource-Based View (RBV). The objective of this study is to examine the impact of organizational capabilities, intellectual capital, and entrepreneurial leadership on micro-enterprise performance. A survey was conducted to gather data from a sample of 118 entrepreneurs participating in entrepreneurial programs provided by three selected agencies. Questionnaires were distributed to all entrepreneurs within the sample, and 100 responses were received. Data analysis was performed using Partial Least Squares (PLS). The findings indicate that organizational capabilities exert a weak positive influence on business performance, with operational capability being the primary contributing dimension. Operational capability refers to the ability of business entities to manage and address existing challenges effectively. However, entrepreneurial leadership and intellectual capital were found to have no significant impact on the performance of the micro-enterprises involved. The theoretical implication of these findings is that strategic intangible assets, as conceptualized by RBV, can indeed be cultivated within the context of micro-scale enterprises, particularly through the operational capabilities dimension of organizational capabilities. However, the effects of intellectual capital and entrepreneurial leadership remain weak and insignificant, as these factors have yet to reach a level of necessary uniqueness to enhance micro-enterprise performance. This study contributes to the existing literature on Organizational Behaviour by examining the simultaneous influence of three specific intangible assets on microbusiness performance.

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Omar, A. R. C., Ishak, S., & Manaf, A. A. (2025). The Influence of Organizational Capabilities, Intellectual Capital, and Entrepreneurial Leadership on Micro-Enterprises Performance. International Journal of Academic Research in Business and Social Sciences, 15(3), 661–681.

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The Influence of Organizational Capabilities, Intellectual Capital, and Entrepreneurial Leadership on Micro-Enterprises Performance

Ahmad Raflis Che Omar, Suraiya Ishak, Azima Abdul Manaf

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