Indonesia’ Small and Medium-Sized Enterprises (SMEs) intellectual capital on Co-Creation Value

Abstract

This study aims to examine the relationship between intellectual capital and value creation in Small and Medium Enterprises (SMEs) companies by exploring the role of innovation orientation and innovation finance capital as mediator variables.This is important to do because in this era of globalization, intellectual capital (IC) is a crucial aspect that must be owned by companies.This is because the existence of IC can improve company performance and be able to compete in an increasingly competitive industry.The sample consisted of 137 participants obtained through a survey study using a path analysis regression model with IMB SPSS to test the research hypothesis.Empirical results show that intellectual capital and innovation have a significant and positive effect on SME value creation.This research enlightens SMEs and the domain of government principles on SME operations and systems.Government and organizational leaders need to improve control and promote close relationships among SMEs.This research can be a reference regarding the influence relationship between intellectual capital and value creation in SMEs.Value creation for SMEs is important to study so that management has input for improving performance, both in terms of products, services, and financial management.

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