Title: Intellectual capital as a source of growth in subsistence small businesses in Latin America

Authors: Carlos M. Jardon; Nilda Catalina

Addresses: Department of Applied Economics, University of Vigo, Campus de Lagoas-Marcosende s/n 36310 Vigo, Spain ' Department of Business and Economics, Universidad Nacional de Misiones, Campus UNaM. Av. Fernando 'Tulo' Llamosas Km. 7,5, Miguel Lanús (CP N3304), Misiones, Argentina

Abstract: Subsistence small businesses (SSBs) are highly important in developing countries as they are one of the main sources of poverty reduction. The growth of SSBs is different from the growth of larger firms as they present different resources and capabilities, and in particular, different intellectual capital. This paper determines the growth process of timber SSBs in Latin America from an intellectual capital-based view. The findings show that SSBs can grow using intellectual capital dimensions. However, this effect is not direct. Organisational capabilities are mediators between intellectual capital dimensions and firm growth. In particular, human capital improves structural capital, which increases relational capital. Relational capital improves organisational capabilities, thus promoting firm growth by means of competitive advantage.

Keywords: subsistence firms; small firms; subsistence businesses; small business; SSB; intellectual capital; firm growth; resources; capabilities; timber industry; Latin America; poverty reduction; organisational capabilities; structural capital; relational capital.

DOI: 10.1504/IJESB.2015.071322

International Journal of Entrepreneurship and Small Business, 2015 Vol.26 No.1, pp.96 - 115

Received: 21 Jan 2015
Accepted: 21 Jan 2015
Published online: 20 Aug 2015 *

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