Impact of intellectual capital on innovation in pharmaceutical manufacturing SMEs in Pakistan

Abstract

The main purpose of this study is to determine the impact of intellectual capital on innovation in pharmaceutical manufacturing SMEs operating in Karachi. This empirical research is based on a survey of 97 pharmaceutical manufacturing SMEs. Purposive sampling technique was used to select the targeted respondents. Multiple regression analysis was applied to test the proposed research hypotheses. The findings demonstrate that intellectual capital has a positive impact on the innovation of SMEs operating in pharmaceutical industry in Karachi. This study will help to comprehend the importance of intellectual capital on innovation in SMEs and provide guidance to capitalise it prudently. This research contributes to the existing literature by investigating effect of intellectual capital on innovation of pharmaceutical manufacturing SMEs in Karachi. This is a first study in Pakistan and it contributes in the existing theory of intellectual capital. It will provide a theoretical base for the future research endeavours.