Top management characteristics and intellectual capital performance in small Italian companies

Purpose – This study aims to explore the relationship between top management characteristics and intellectual capital (IC) performance of small companies. Design/methodology/approach – This research offers an empirical investigation into a unique sample of 135 small Italian companies, which have been recognised as meeting legal values. This study uses a regression analysis to test whether CEO age, CEO connections and management team size affect IC performance. Findings – Companies managed by CEOs with higher levels of connections and with a greater number of managers exhibit improved IC performance. In addition, this study provides evidence that companies with older CEOs demonstrate better IC efficiency. Research limitations/implications – This study does not consider all top management-specific factors and incentives that may affect IC performance and uses a limited sample of companies. Practical implications – This study suggests that increased network activity and larger management teams are beneficial for small companies to improve the efficiency of IC used. Originality/value – The work offers novel empirical evidence to understand what governance and management-specific factors affect the efficiency in managing IC assets in small companies.