Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia

Research Article

The Role of Intellectual Capital in Improving the MSME’s Organizational Performance

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  • @INPROCEEDINGS{10.4108/eai.2-8-2023.2341525,
        author={Bima Cinintya Pratama and Azmi Fitriati and Maulida Nurul Innayah and Amrizah Kamaluddin and Shukriah Saad and Encep Saepudin},
        title={The Role of Intellectual Capital in Improving the MSME’s Organizational Performance},
        proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia},
        publisher={EAI},
        proceedings_a={ICEB},
        year={2024},
        month={6},
        keywords={intellectual capital human capital structural capital organizational performance},
        doi={10.4108/eai.2-8-2023.2341525}
    }
    
  • Bima Cinintya Pratama
    Azmi Fitriati
    Maulida Nurul Innayah
    Amrizah Kamaluddin
    Shukriah Saad
    Encep Saepudin
    Year: 2024
    The Role of Intellectual Capital in Improving the MSME’s Organizational Performance
    ICEB
    EAI
    DOI: 10.4108/eai.2-8-2023.2341525
Bima Cinintya Pratama1,*, Azmi Fitriati1, Maulida Nurul Innayah1, Amrizah Kamaluddin2, Shukriah Saad2, Encep Saepudin3
  • 1: Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia
  • 2: Faculty of Accountancy, Universiti Teknologi MARA, Malaysia
  • 3: Faculty of Islamic Education, Universitas Muhammadiyah Purwokerto, Indonesia
*Contact email: bimacinintyapratama@ump.ac.id

Abstract

This study aims to assess the organizational performance of micro, small, and medium-sized enterprises (MSME) in the Banyumas, Cilacap, and Brebes Regencies by considering human capital and structural capital into account. This study utilized populations and samples of MSME administrators from Banyumas, Cilacap, and Brebes. This investigation utilized SEM-PLS, an analytical instrument that employs the inner model, outer model, and hypothesis testing. The findings of this study suggest that human capital has a positive effect on organizational performance, as MSMEs with competent human resources can attain high organizational performance. The infrastructure and operational efficiency of a micro, small, and medium-sized enterprise will support its organizational performance, so structural capital has a positive effect on organizational performance. The implication of this study is that MSMEs must maximize their business potential, particularly through their intellectual capital resources, in order to enhance their organizational performance.