Intellectual capital is a prime strategic asset for organizations in a knowledge based economy. In a knowledge
based economy it is indispensible for organizations to indentify, maximize and utilize their intellectual capital to
stay in a competitive environment. The main crux of this paper is to examine the relationship of intellectual
capital with organizational performance of electrical and electronics SMEs operating in manufacturing sector in
Pakistan. This research is conducted in two cities of “Golden Tri Angle” namely Gujrat and Gujranwala in
Pakistan. Convenience sampling technique was used for data collection. Structured questionnaires were
administrated as a research instrument to collect data from respondents. Pearson Correlation and Multiple
Regression were used to test the relationship between components of intellectual capital and organizational
performance. This is the first study that focused on small and medium enterprises in Pakistan to examine the
relationship of intellectual capital with organizational performance.