Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321448 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2325834 [Year:] 2024 [Pages:] 1-16
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Intellectual capital is now recognized as a factor influencing organizational progress. However, many Micro, Small and Medium Enterprises (MSME's) in Indonesia still need to understand the importance of intellectual capital to support their organizational performance. This study aims to strengthen intellectual capital succession in MSME's in Indonesia to improve their competitiveness, financial performance, and sustainability. The population of this study is all MSME's players in Indonesia. At the same time, the research sample selection is carried out using the criteria, namely MSME's that have been running their business for at least ten years and use technology in business activities. The calculation of the minimum number of samples was determined from this research method using the SEM (Structural Equation Modeling) analysis test by carrying out several tests, namely composite reliability, coefficient determination, and hypothesis testing. Scientific tests found that human capital affects structural capital, relational capital, and the competitiveness of MSME's in Indonesia. Structural and relational capital mediate the strong relationship between human capital and the competitiveness of MSME's in Indonesia. Structural and relational capital can also mediate the strong relationship between human capital and the continuity of MSME's businesses in Indonesia. Meanwhile, the relationship between human capital and the financial performance of MSME's in Indonesia can only be weakly mediated by structural and relational capital. These findings certainly provide new evidence about the importance of intellectual capital for the sustainability and competitiveness of today's MSME's businesses. This study aims to strengthen intellectual capital succession in MSMEs in Indonesia to improve their competitiveness, financial performance, and sustainability. In this study, the authors formulate empirical references and findings related to improving the quality of MSMEs to compete and survive through the influence of human capital on structural capital, relational capital and the competitiveness of MSMEs in Indonesia. Scientific tests found that human capital affects structural capital, relational capital, and the competitiveness of MSMEs in Indonesia. Structural and relational capital mediate the strong relationship between human capital and the competitiveness of MSMEs in Indonesia. Structural and relational capital can also mediate the strong relationship between human capital and the continuity of MSME businesses in Indonesia. Meanwhile, the relationship between human capital and the financial performance of MSMEs in Indonesia can only be weakly mediated by structural and relational capital.
Subjects: 
Financial performance
sustainability smes
sustainability organization
intellectual capital
strategicsustainability
JEL: 
M2
M4
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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