Intellectual Capital and Company Performance with Innovation as Mediation Variables
Retno Cahyaningati, Grahita Chandrarin, Harmono, Diyah Sukanti Cahyaningsih

Universitas Merdeka Malang

Abstract

The purpose of this study was to analyze the influence between intellectual capital, innovation, and company performance on MSMEs in East Java - Indonesia. The proxy for each variable uses a Likert scale measurement by distributing questionnaires to MSME actors. The population in this study was 500 MSME business actors, while the research sample was 125 MSME actors, this sample was a returned questionnaire. The data analysis technique uses quantitative descriptive, using the PLS 3 software application. The results showed that intellectual capital has a significant effect on innovation and company performance, then innovation has a significant effect on company performance. Innovation also acts as a mediating relationship between intellectual capital and company performance. If the intellectual capital built by MSME business actors is more oriented towards innovation, namely the speed and quality of innovation, such as in making new and quality products, new services are also of high quality, and strategies for solving problems are also more precise than other companies, this increased innovation will later improve company performance. This research contributes to the implications of intellectual capital in the business world which can be carried out early on, in the sense that even though companies are on a micro scale, MSME business actors can manage intellectual capital well in creating company performance.

Keywords: Intellectual Capital, Innovation, Company Performance, MSMEs

Topic: Green Management and Business