The Role of Intellectual Capital and Knowledge Sharing in Manufacturing SMEs' Innovation and Firm Performance

This research work draws attention to the value of the correlation between intellectual capital, knowledge sharing, innovation performance, and firm performance. The study focused on Jordanian manufacturing sector, where this sector has a substantial role in the Jordanian economy. The study employed a quantitative research approach, through designing a questionnaire survey in purpose of collecting data from manufacturing firms in Jordan. The data were obtained from 216 questionnaires out of 250 distributed. The study findings revealed a positive relation between intellectual capital and innovation performance, knowledge sharing, and firm performance. It can be concluded that intellectual capital components, structural, human, and relational capital, positively impacted knowledge sharing within firms. Additionally, the study findings indicated that knowledge sharing is found to partially mediate the relationship between intellectual capital and both innovation performance and firm performance. The study also highlights the potential for manufacturing firms to boost their innovation and overall performance by paying more attention to their intellectual capital, in addition to promoting a culture of knowledge sharing among employees. This study as well provides valuable insights for decision makers on achieving a sustainable competitive advantage through effective knowledge management and innovation strategies.