The Mediating Role of Innovation Speed and Quality in the Relationship between Intellectual Capital and Firm Performance: The Case of Tien Giang Small and Medium Enterprises (SMEs) in the Early Stages

The purpose of this chapter is to test the model by using structural equation modeling using partial least squares (PLS-SEM) to analyze data collected from 395 small and medium enterprises (SMEs) in Tien Giang province, Vietnam. The results show that the three components of intellectual capital (IC), namely human capital, structural capital (SC), and relational capital, are positively related to firms’ performance, considering the mediating role of innovation speed and quality of a firm in the early stages. The findings indicate that an effective way to improve SMEs’ performance is by enhancing their intangible capitals and innovation by using PLS-SEM software. The collected samples are limited in the cultural province of the delta region, thus this limits generalization to other contexts. Guidelines for practical solutions to help SMEs enhance their competitive advantage and gain the best firm performance in their business are included.