Purpose: Purpose of this research paper is to evaluate and validate link between organizational performance and components of Intellectual capital in SMEs operating Rawalpindi and Islamabad cities of Pakistan. Design/methodology/approach Data were collected through a structured questionnaire from a sample of 150 respondents from Pakistani SMEs in Islamabad and Rawalpindi. Several tests were used to examine the reliability and validity of the research instrument. Finally multiple regression analysis was used to test the proposed research hypothesis.