Small and medium-sized enterprises (SMEs) constitute the backbone of most national economies, contributing substantially to employment generation, innovation, and economic resilience. Despite their importance, SMEs continue to face persistent challenges related to resource scarcity, performance volatility, and competitive pressure in increasingly knowledge-driven markets. Within this context, intellectual capital and working capital management have emerged as two critical yet often separately examined determinants of firm performance. The present study develops a comprehensive and integrated research article that theoretically and empirically examines how intellectual capital components and working capital management practices jointly influence organizational performance in SMEs. Drawing strictly on established literature, this article synthesizes perspectives from intellectual capital theory, resource-based view, knowledge-based view, and financial management theory to construct a unified analytical framework.

The study elaborates intellectual capital as a multidimensional construct encompassing human capital, structural capital, relational capital, and emerging dimensions such as green intellectual capital and organizational reputation. These intangible resources are conceptualized not merely as passive assets but as dynamic capabilities that enable SMEs to convert limited tangible resources into sustainable competitive advantage. In parallel, working capital management is examined as a strategic operational function that governs liquidity, efficiency, risk management, and short-term financial stability. Rather than treating working capital as a purely mechanical financial process, this article positions it as a performance-enhancing mechanism that interacts deeply with organizational knowledge, managerial competence, and stakeholder relationships.

Methodologically, the article adopts a rigorous text-based analytical approach grounded in panel data logic, dynamic performance modeling, and interaction-effect reasoning, as established in prior empirical studies. The methodological discussion explains how advanced econometric approaches, such as dynamic panel estimations, are conceptually suitable for capturing the persistence of firm performance and the lagged effects of intellectual and financial resource deployment. Results are presented descriptively, synthesizing empirical patterns reported in the literature, including evidence from SMEs across emerging and developed economies. The findings suggest that intellectual capital exerts both direct and indirect effects on firm performance, while effective working capital management enhances profitability, operational efficiency, and resilience, particularly under financial constraints.

The discussion advances the argument that intellectual capital and working capital management are not independent drivers of performance but mutually reinforcing systems. Human capital enhances financial decision quality, structural capital improves process efficiency, and relational capital strengthens cash flow stability through improved customer and supplier relationships. The article further explores limitations, contextual contingencies, and future research directions, emphasizing the need for integrative models that bridge intangible assets and financial management. The study concludes by offering theoretical, managerial, and policy implications, underscoring the strategic importance of aligning intellectual capital development with working capital optimization to foster sustainable SME performance.

Intellectual Capital, Working Capital Management, SME Performance, Human Capital

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