The Role of Intellectual Capital in Improving Micro, Small, And Medium-Scale Business Performance in The Hostel And Culinary Sector in Pekanbaru, Indonesia
DOI:
https://doi.org/10.37385/ijedr.v2i2.274Keywords:
Intellectual Capital, Business Performance, MSMEAbstract
The increased level of competitiveness and Micro, Small, and Medium-Scale Business (MSME) performance in the hostel and culinary sector in Indonesia, especially in Pekanbaru, need more concerns since MSME is an important business sector to encourage the economy of a country and reduce the unemployment rate by creating job opportunities. In the technology era, the development of the intellectual capital concept suitable for MSME is needed due to the current competitive and disruptive business area. This study was conducted in 378 MSMEs in the hostel and culinary sector in Pekanbaru city. The data analysis technique in this study was Structural Equation Modeling (SEM) assisted by AMOS. The result of this study showed that human capital influenced the financial performance and non-financial performance of MSME in the hostel and culinary sector in Pekanbaru City, while technology capital did not influence the non-financial performance of MSME in the hostel and culinary sector in Pekanbaru city. Customer capital influenced the financial and non-financial performances of MSME in the hostel and culinary sector in Pekanbaru city. Social capital influenced the financial and non-financial performances of MSME in the hostel and culinary sector in Pekanbaru city. Non-financial performance influenced the financial performance of MSME in the hostel and culinary sector in Pekanbaru city.
References
Aidis, R., & Saul, E. (2007). Entrepreneurship in Emerging Markets?: Which Institutions Matter?? University Business, 44(2).
Alazzawi, A. A., Upadhyaya, M., & Alkubaisi, M. (2018). Technological Capital and Firm Performance?: Quantitative Investogation on Intellectual Capital Efficiency, 22(2), 1–10.
Anton, S. A., Muzakan, I., & Muhammad, W. F. (2015). An Assessment of SME Competitiveness in Indonesia. Journal of Competitiveness, 7(2), 60–74. https://doi.org/10.7441/joc.2015.02.04
Arregle, J.-L., Hitt, M. A., Sirmon, D. G., & Very, P. (2007). The Development of Organizational Social Capital: Attributes of Family Firms. Journal OfManagement Studies, 44(1), 74–94. https://doi.org/10.1111/j.1467-6486.2007.00665.x
Astarina, I., Budiyanto, B. & Agustedi. A. 2021. The rule of competence, compensation, and workshop on employee performance mediated by prime service of public health service. Accounting 7(1), 65-74.
Berry, A., Rodriguez, E., & Sandee, H. (2002). Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia Small and Medium Enterprise Sector in Indonesia. Source: Small Business Economics, 183(1), 141–161. https://doi.org/10.1080/00074910152669181
Bontis, N., Chua, W., Keow, C., Richardson, S., & Richardson, S. (2009). Intellectual capital and business performance in Malaysian industries industries.
Chen, M. (2005). An empirical investigation of the relationship between intellectual capital and firms ’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. https://doi.org/10.1108/14691930510592771
Ciemleja, G., & Lace, N. (2008). The Role of Customer Capital for SME Sustainable Development, 3201.
Claver-cortes, E., Zaragoza-saez, P. C., & Molina-manchon, H. (2015). Article information?: Paper type Research paper.
Dewi, P., Budiyanto, B. & Agustedi. A. (2020). The role of interpersonal communication in moderating the effect of work competence and stress on employee performance. Accounting 6(7), 1217-1226.
Dakhli, M., & De Clercq, D. (2004). Human capital, social capital, and innovation: A multi-country study. Entrepreneurship and Regional Development, 16(2), 107–128. https://doi.org/10.1080/08985620410001677835
Fatoki, O. O. (2011). The Impact of Human , Social and Financial Capital on the Performance of Small and Medium-Sized Enterprises ( SMEs ) in South Africa, 29(3), 193–204.
Fernandez, R. M., Castilla, E. J., Moore, P., Fernandez, R. M., Castilla, E. J., & Moore, P. (2016). Social Capital at Work?: Networks and Employment at a Phone Center ’. American Journal of Sociology, 105(5), 1288–1356.
Fukuyama, F. (1995). Trust: Social Virtues and the Creation of Prosperity. London: Hamish Hamilton.
Fitrio, T., Budiyanto, B. & Agustedi. A. (2020). The rule of organizational citizenship behavior and innovative work behavior in mediating the influence of organizational commitment and culture to employee performance. Accounting, 6(7), 1351-1360.
Ghozali, I. (2017). Model Persamaan Struktural, Konsep dan Aplikasi dengan Program AMOS 24. Semarang: Badan Penerbit Universitas Diponegoro.
Hair, J. F. J., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis (Fifth edit). Prentice Hall Internatiional, inc.
Khalique, M. (2016). Intellectual capital in Malaysian hotel industry?: a case study of Malacca Shazali Abu Mansor. Int. J. Business Performance Management, 17(1), 103–116.
Lee, W. (2017). Social Capital as a Source of Business Advantages for a Woman Entrepreneur in the Context of Small-Size Business. Asian Social Science, 11(12), 155–167. https://doi.org/10.5539/ass.v11n12p155
Maditinos, D., Ševi, Ž., & Tsairidis, C. (2010). Intellectual Capital and Business Performance?: An Empirical Study for the Greek Listed Companies, XIII(3).
Moeheriono. (2012). Pengukuran Kinerja Berbasis Kompetensi. Jakarta: Raja Grafindo Persada.
Muda, S., Ridhuan, M., & Abdul, C. (2016). Human Capital in SMEs Life Cycle Perspective. Procedia Economics and Finance, 35(October 2015), 683–689. https://doi.org/10.1016/S2212-5671(16)00084-8
Nahapiet, J., & Ghoshal, S. (1998). Sosial Capital, Human Capital and Organizational Advantage. Nonaka & Takeuchi, 23(2), 242–266. https://doi.org/10.2307/259373
Ozigi, O. (2018). Social Capital and Financial Performance of Small and Medium Scale Enterprises Akademia Baru. Journal of Advanced Research in Business and Management Studies, 1(1), 18–27.
Pascal, V. J. (2015). the Role of Marketing Capabilities and Entrepreneurial Orientation on Sme Performance. Journal of International Marketing Strategy, 3(1), 37–54.
Sharabati, A. A., Jawad, S. N., & Bontis, N. (2010). Intellectual capital and business performance in the pharmaceutical sector of Jordan. Management Decision, 48(1), 105–131. https://doi.org/10.1108/00251741011014481
Tengeh, R. (2011). A Business Framework for the Effective Start-Up and Operation of African Immagrant-Owned Business in the Cape Town Metropolitan Area, South Africa. Cepe Peninsula University of Technology.
