Intellectual capital and innovation culture: evidence from SMEs performance in Indonesia

I Wayan Edi Arsawan

doi:10.31520/2616-7107/2019.3.4-2

I Wayan Edi Arsawan Politeknik Negeri Bali, Badung, Indonesia http://orcid.org/0000-0001-8493-5249

DOI: https://doi.org/10.31520/2616-7107/2019.3.4-2

Abstract

Introduction Small and medium enterprises are largely dependent on producing revolutionary ideas to improve performance, innovation, and competitive advantage, but the delay in innovation often prevents SMEs from benefiting from making rapid and systematic innovations. To create a culture of innovation, it is necessary to map the intellectual capital. Mapping intellectual capital is needed as a systematic effort to optimize the role of knowledge in organizational sustainability.

Aims and tasks. This study investigates the relationship between intellectual capital, innovation culture and the performance of export SMEs. Conducted in a survey of 69 export SMEs in Bali, Indonesia. This research was conducted by survey method through the distribution of questionnaires with a semantic differential scale to 177 managers, supervisors and employees. The questionnaire distributed via offline by going directly to export SMEs in addition to conducting in-depth interviews.

Results. First, intellectual capital does not significantly influence the culture of innovation, where these results prove that SMEs must be responsive to market developments and not focus on the internal path. Second, the culture of innovation has a significant influence on the performance of SMEs, which proves that innovation is a trend in absorbing market share, especially in creating superior products, is difficult to emulate and has added value for customers. Third, intellectual capital has a significant effect on business performance. This proves that the important role of intellectual capital in improving the performance of SMEs.

Conclusions. The export-oriented SME sector has an increasing trend given the vast market share that can be targeted. But the role of intellectual capital must still get more portions because it has a significant effect on organizational performance. Although it does not yet have a significant influence on the culture of innovation, future research can become a preference that similar research needs to be done again to test these findings.

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