Exploring the Intellectual Capital in SME: An Advanced Model of Integrated Performance Measurement System

Purpose: The goal of this study is to offer a "Integrated Performance Measurement System" (PMS) for "Small and Medium Enterprises"(SMEs) that addresses the measurement and management of financial and non-financial performance as well as "Intellectual Capital" (IC). The work is based on Pirozzi and Ferulano's (2016) "Integrated New Model" (INM), which deals with the same job applied to a specific sector. As a result, we recommend that the INM model be modified to establish a "Renewed and Advanced Model" known as "INM*" as an integrated PMS for SMEs. Methodology: To create an advanced model INM*, we employed a qualitative method with an inductive and deductive approach. As a result, the characteristics of SMEs are translated into our enhanced INM* model using the INM* structure and the IC framework. We also included the viewpoints of "Strategic Management Accounting" (SMA) and "Systems of Innovation" (SI) in our suggested model INM*.

Findings: As an integrated PMS, we offered the advanced model INM*. This is a model that supports entrepreneurial and innovative small businesses, as well as a conceptual framework that summarises the interactions and knowledge conversions that occur between the IC components during the innovation process. As a result, the presented model is a beneficial tool for SMEs.

Conclusion: The INM* model, which has been updated and improved, is useful in both academic and practical settings. It demonstrates the benefits of utilising an innovative measurement system dedicated to completing all of the measurement duties undertaken by SMEs. In addition, two other models are offered and are available for further investigation.