Intellectual capital management as a catalyst for organizational agility and performance in post-COVID-19 Romanian SMEs

Abstract

"Purpose: The study seeks to investigate the impact of intellectual capital (IC) management on the performance and agility of small- and medium-sized enterprises (SMEs) in Romania, with a particular focus on the post-COVID-19 recovery period. By examining the roles of human, structural and relational capital, the study sets out to provide insights into how SMEs can build resilience against future socioeconomic disruptions and achieve a sustainable competitive advantage. Design/methodology/approach: A quantitative research method was employed, utilizing a questionnaire distributed to 121 managers from Romanian SMEs. The collected data was analyzed using SmartPLS 4 software to test hypotheses regarding the role of intellectual capital management in enhancing organizational agility and performance. Findings: IC, especially human capital, substantially influences organizational agility and performance in SMEs. Findings confirm that adapting to a dynamic work environment requires that SMEs invest in employee development, foster strong internal and external relationships, and embrace new technologies. Furthermore, building an adaptive organizational culture open to change and learning is essential for sustaining long-term competitive advantage in an unpredictable market. Research limitations/implications: The study advances theoretical and practical recommendations for academics, managers and policymakers on leveraging IC to enhance organizational agility and performance, offering a roadmap for organizations navigating systemic crises. The main limitation is the context-driven focus of the research on Romanian SMEs. Practical implications: Switching to the practical implications, this research offers managers of small and medium-sized businesses (SMEs) in Romania insightful knowledge about how to strategically manage IC to improve organizational agility and performance and illustrates the need for the SMEs to invest in the human capital, to adapt quickly to the market changes and to invest their resources in integrating new technologies, alongside with building strong relationships (both inside and outside the organization) and to cultivate an adaptive organizational culture that is open to change and to learn. Social implications: This study provides guidance to the Romanian managers in finding the key to success, by ensuring competitiveness in the nowadays dynamic market, foster innovation and boost the agility and the performance of the organization. Originality/value: The research is the first one to address the strategic importance of IC management in Romanian SMEs with a view to attaining agility and performance in turbulent times."