Determination of financial performance by intellectual capital in the green economy era for MSMEs in leading sector in Semarang City.
Windasari Rachmawati and Abdul Karim, Evva Nabila, kholifatul ulya

Semarang University

Abstract

The primary aim of this research is to assess how intellectual equity (IC) influences financial performance inside of small and medium enterprises (SMEs) operating in the forefront of the green economy in Semarang City. This research adopts a theoretical framework designed to explore the connection among IC and competitiveness, identifying the key factors that affect this dynamic. In this context, IC serves as the independent variable, competitiveness acts as the mediating variable, and financial performance is regarded as the dependent variable. Data collection was conducted through the distribution of questionnaires, employing a non-probskill sampling method alongside purposive sampling techniques. Respondents were selected according to predetermined criteria, targeting individuals involved in business operational management as well as owners of micro, small, and medium enterprises (MSMEs) in Semarang City. The formulated hypotheses were evaluated utilizing Partial Least Squares (PLS) analysis. To gauge the degree of agreement or disagreement, a Likert scale was utilized in the survey administered to MSMEs inside of the region. Intellectual equity serves as a crucial intermediary that links different forms of equity-namely human, structural, and relational-by financial performance outcomes. While human equity and relational equity may not exert a direct influence on financial performance, their effects can be realized when bolstered by intellectual equity. This indicates that an effective integration of human resources, internal operational processes, and external partnerships is essential, facilitated by intellectual equity, to enhance financial performance..

Keywords: Intellectual equity, Competitiveness, Financial Performance, leading sector, MSMEs

Topic: Economics