This paper unwinds the efficiency of Intellectual Capital (IC) and its components among the SMEs in Kingdom of Saudi Arabia. The paper aimed to unfurl the relationships of IC with value creation and return of equity to the shareholders. The study could provide the impetus about the SMEs which are usually underplayed regarding the IC efficiency. Three years’ data (2016-2018) of SMEs listed in NOMU, the parallel market index of KSA has been utilized for analysis purposes. The IC efficiency has been measured by applying the most prominent and popular IC efficiency measurement tool, i.e. Value Added Intellectual Coefficient (VAIC). The study found that the firms who performed well at the IC ground also did well in owner’s equity and value addition. The findings of the study would serve as a source of information to the stakeholders and potential investors to consider the value creation capabilities of this sector in Kingdom of Saudi Arabia (KSA).
Volume 11 | 08-Special Issue
Pages: 2175-2180