Does intellectual capital matter in small- and medium-sized enterprise (SME) decisions? Roles of resource integration capability and top management team involvement

Purpose Drawing upon an integrative perspective from intellectual capital theory with upper echelon theory, we examined how intellectual capital affects resource integration capability and subsequent strategic decision-making under weak versus strong top management team (TMT) involvement behavior. The purpose of this study was to investigate the relationships between intellectual capital and strategic decision-making and the mediated moderating effect between intellectual capital and decision-making on small- and medium-sized enterprises (SMEs). Design/methodology/approach Using statistical empirical analysis, we tested our research hypotheses via large-scale survey data from 323 SMEs. A regression analysis was applied to intellectual capital, resource integration capability and TMT involvement behavior to estimate their influence on strategic decision-making. Findings Our findings suggest that the positive effect of intellectual capital on strategic decision-making via resource integration capability is conditional on TMT involvement behavior, underscoring the role of resource integration capability and TMT involvement behavior in intellectual capital. The results also indicate that intellectual capital and resource integration capability strengthen positive decision-making relationships. Furthermore, TMT involvement behavior strengthens the positive interaction effect of intellectual capital with resource integration capability. Practical implications Intellectual capital is a critical and preeminent strategic resource for strengthening strategic decision-making, especially for SMEs. Notably, trends related to intellectual capital can be used to explore the management of SMEs and the corresponding contributions to and improvements in strategic decision-making. Specifically, intellectual capital can be used by SME management teams to formulate and implement relevant strategic decisions and enhance the effectiveness of decision-making, which are critical steps for success in decision-making processes. Originality/value This research explored the relationships among intellectual capital, resource integration capability, TMT involvement behavior and strategic decision-making in a comprehensive mediated moderation model; it is the first known study to highlight that intellectual capital can enhance strategic decision-making and provide managerial implications regarding how to align resource integration capability and TMT involvement behavior while performing strategic decision-making.