Effect of Intellectual Capital on Innovation Capacity and Competitive Advantage in SMEs

Intellectual capital is used to create and increase business value and the success of an organization depends on its ability to manage scarce resources and more importantly, through these scarce resources can achieve a competitive advantage in their business areas. The present study examines the impact of intellectual capital on competitive advantage through innovation capacity. In terms of type, this research is a descriptive – correlation. Survey of all managers Kerman's food industrial estates are a total of 97 samples were considered as directors and Data were collected through questionnaire and analysis of information and software PLS regression was used. The results of this study indicate that the application of intellectual capital to achieve competitive advantage in small businesses facilitate through the innovation capacity of businesses.