The value of intellectual capital in improving MSMEs’ competitiveness, financial performance, and business sustainability

Figures & data

Figure 1. Research framework model.

Note.

HC01-HC05: Indicator item number of the human capital variable (see Appendix for complete information).

SC06-SC10: Indicator item number of the structural capital variable (see Appendix for complete information).

RC11-RC15: Indicator item number of the relational capital variable (see Appendix for complete information).

DS16-DS20: Indicator item number of the competitiveness variable (see Appendix for complete information).

KK21-KK23: Indicator item number of the business continuity (see Appendix for complete information).

KU24-KU28: Indicator item number of the finansial performance variable (see Appendix for complete information).

Table 1. Likert scale answer criteria weight.

Meaning	Number
Strongly agree	5
Agree	4
Neutral	3
Disagree	2
Strongly Disagree	1

Source: (Likert, 1932).

Table 2. Research variable measurement indicators.

No	Variable	Indicator	Measurement
1.	Intellectual Capital (Human Capital-X1)	MSME business actors who have special skills, abilities, competencies, creativity, education, high-quality qualifications, and experience to find practical solutions for every customer’s demands (Jordão & Novas, 2017).	Likert scale
2.	Intellectual Capital (Structural Capital-X2)	Indicator structural capital, namely culture, routines, instructions, procedures, systems, and technological and intellectual developments (Agostini et al., 2017).	Likert scale
3.	Intellectual Capital (Relational Capital-X3)	This indicator is observed through the organization’s relationships with all relevant parties and stakeholders, including the capacity of employees to develop and maintain connections with affiliated parties such as customers and suppliers (Saunila, 2014).	Likert scale
4.	Competitiveness	The Threat of New Entrants The Intensity of Rivalry Competition in an Industry (Hsu & Mykytyn, 2010).	Likert scale
5.	Financial performance	ROA ROE PER	Ratio Scale
6.	Business Continuity	economic potential, Product quality improvement, Business environment conditions.	Likert scale

Sourced: author’s documentation.

Table 3. Validity and reliability test results.

Variable	Items	Correlation (r)		Coefficient
		r	Status	Alpha	Status
Intellectual Capital (Human Capital-X1)	HC01	0.410	Valid	0.815	reliable
	HC02	0.965	Valid
	HC03	0.965	Valid
	HC04	0.963	Valid
	HC05	0.957	Valid
Intellectual Capital (Structural Capital-X2)	SC06	0.561	Valid	0.793	reliable
	SC07	0.923	Valid
	SC08	0.923	Valid
	SC09	0.400	Valid
	SC10	0.923	Valid
Intellectual Capital (Relational Capital-X3)	RC11	0.555	Valid	0.775	reliable
	RC12	0.626	Valid
	RC13	0.780	Valid
	RC14	0.733	Valid
	RC15	0.785	Valid
Competitiveness	DS16	0.596	valid	0.815	reliable
	DS17	0.948	valid
	DS18	0.752	valid
	DS19	0.948	valid
	DS20	0.948	valid
Financial performance	KK21	0.778	valid	0.617	reliable
	KK22	0,313	valid
	KK23	0.492	valid
Business Continuity	KU24	0.689	valid	0.791	reliable
	KU25	0.804	valid
	KU26	0.779	valid
	KU27	0.705	valid
	KU28	0.739	valid

Source: Data processed, 2021.

Note.

HC01-HC05: Indicator item number of the human capital variable (see Appendix for complete information).

SC06-SC10: Indicator item number of the structural capital variable (see Appendix for complete information).

RC11-RC15: Indicator item number of the relational capital variable (see Appendix for complete information).

DS16-DS20: Indicator item number of the competitiveness variable (see Appendix for complete information).

KK21-KK23: Indicator item number of the business continuity (see Appendix for complete information).

KU24-KU28: Indicator item number of the finansial performance variable (see Appendix for complete information).

Table 4. Composite reliability calculation results.

Dimension	Composite Reliability
Human Capital-X1	0.946
Structural Capital-X2	0.875
Relational Capital-X3	0.827
Competitiveness_Y1	0.926
Finansial Performance_Y2	0.878
Business Continuity_Y3	0.858

Source: Smart PLS, 2021.

Table 5. Coefficient of determination (R²).

	R square
Competitiveness_Y1	0.379
Financial Performance_Y2	0.052
Business Continuity_Y3	0.733

Source: Smart PLS, 2021.

Table 6. Hypothesis testing results.

Hypothesis	Path Chart					Path Coefficient	Sig	t count	Information
H1	Human Capital	→	Structural Capital			0.006	0.000***	150.701	Significant
H2	Human Capital	→	Relational Capital			0.085	0.043**	6.936	Significant
H3	Human Capital	→	MSME competitiveness			0.081	0.012**	2.796	Significant
H4	Human Capital	→	Structural Capital	→	MSME competitiveness	0.041	0.000***	3.978	Significant
H5	Human Capital	→	Relational Capital	→	MSME competitiveness	0.081	0.053*	9.689	Significant
H6	Human Capital	→	Structural Capital	→	Financial performance	0.314	0.715	0.954	Not Significant
H7	Human Capital	→	Relational Capital	→	Financial performance	0.255	0.877	0.910	Not Significant
H8	Human Capital	→	Structural Capital	→	Business Continuity	0.055	0.001***	6.204	Significant
H9	Human Capital	→	Relational Capital	→	Business Continuity	0.051	0.000***	20.869	Significant

*significant at 10% level (p value < 0,1).

**significant at 5% level (p value < 0,05).

***significant at 1% level (p value < 0.001).

Source: Data processed, 2021.

Table 7. Summary of hypothesis testing results.

Hypothesis	Relationship	Decision
H1	HC→SC	Not rejected
H2	HC→RC	Not rejected
H3	HC→ competitiveness	Not rejected
H4	HC→SC→competitiveness	Not rejected
H5	HC→RC→competitiveness	Not rejected
H6	HC→SC→financial performance	Rejected
H7	HC→RC→financial performance	Rejected
H8	HC→SC→sustainability	Not rejected
H9	HC→RC→sustainability	Not rejected

Source: data processed.

Figure 2. Data test results.

Source: Smart PLS, 2021.

Note.

HC01-HC05: Indicator item number of the human capital variable (see Appendix for complete information).

SC06-SC10: Indicator item number of the structural capital variable (see Appendix for complete information).

RC11-RC15: Indicator item number of the relational capital variable (see Appendix for complete information).

DS16-DS20: Indicator item number of the competitiveness variable (see Appendix for complete information).

KK21-KK23: Indikator item number of the business continuity (see Appendix for complete information).

KU24-KU28: Indicator item number of the finansial performance variable (see Appendix for complete information).

Table

No	Code	Statement
Intellectual Capital - Human Capital (X1)
1.	HC01	I as well as my employees, have knowledge and experience about the job/task and do it according to predetermined standards .
2.	HC02	I and my employees, have creativity in completing work by applying effective and efficient work methods.
3.	HC03	I and my employees have the ability to complete large or large numbers of jobs/tasks
4.	HC04	I always have a positive attitude and try to do activities to be able to give maximum results.
5.	HC05	I communicate with anyone to understand each other’s problems and help each other solve the problem.
Intellectual Capital - Structural Capital (X2)
6.	SC06	There is the availability of a combination of computers, applications, and data (database) that is able to support each job.
7.	SC07	The existence of an organizational structure that divides, groups, and coordinates tasks or work.
8.	SC08	There is a corporate culture that supports the performance of MSME owners and employees.
9.	SC09	Implement business strategies to compete and improve performance.
10.	SC10	Have machine-like technology to increase the productivity of owners and employees
Intellectual Capital - Relational Capital (X3)
11.	RC11	I am able to coordinate all activities well.
12.	RC12	I am able to complete every job quickly and correctly.
13.	RC13	I always use technological devices to facilitate the completion of daily work.
14.	RC14	I quickly learn to use technology.
15.	RC15	I have a very adaptive strategic plan with development technology moment this.
Superiority Competitive (Y1)
16.	DS16	Our company always offers competitive prices compared to competitors
17.	DS17	Our company has product innovation that is different from competitors.
18.	DS18	Our company always delivers goods to consumers on time compared to competitors.
19.	DS19	Our company moves quickly in developing new products compared to competitors
20.	DS20	Our company always provides products with new advantages (features) compared to competitors.
Company/UMKM Performance (Y2)
21.	KK21	The business I live in has increased sales every month
22.	KK22	The business capital that I have is always increasing.
23.	KK23	Profits/profits from the business that I do every month always increase.
Sustainability effort (Y3)
24.	KU24	Funding went smoothly without any problems
25.	KU25	The company keeps saving even a little for future business development
26.	KU26	Building a marketing network in maximizing revenue
27.	KU27	Maintaining the existence of the workforce for quality production results
28.	KU28	There is an increase in income from time to time, although slightly

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Data availability statement

The data that support the findings of this study are available from the corresponding author, [author initials], upon reasonable request.