Multicultural workplaces and intellectual capital: A case study in SMEs

Abstract

In today's globalised business environment, understanding the impact of multiculturalism on intellectual capital management is crucial, particularly for Small and Medium-sized Enterprises (SMEs). This study examines how a diverse workforce influences the effective management of intellectual capital in SMEs, addressing the key challenges these organisations face. The research explores both the benefits and difficulties of such diversity by analysing the effects of a multicultural setting on intellectual capital management and SME performance. Additionally, it examines the dynamics of cultural differences within small and medium-sized enterprises (SMEs) in Tunisia and Portugal. A case study methodology approach is used to thoroughly explore how intellectual capital is managed in a multicultural workplace, providing rich insights into decision-makers' perspectives and practices through a qualitative lens. The findings emphasise the importance of recognising and utilising diverse perspectives and experiences in a multicultural workplace. The study concludes that multicultural workplaces can positively influence intellectual capital when supported by inclusive practices. It highlights that strong cultural intelligence and inclusive leadership are key enablers of knowledge sharing, innovation, and improved organizational performance.This research provides actionable recommendations for small and medium-sized enterprises (SMEs) to enhance intellectual capital management in diverse environments. Moreover, it explores whether a multicultural workforce boosts innovation and organisational performance. By filling a notable gap in empirical research, this study offers valuable insights for academic researchers and practitioners seeking to navigate the complexities of managing intellectual capital in SMEs.