The Role of Innovation and Knowledge Management in Mediating the Relationship between Intellectual Capital and Organizational Performance in Koperasi UKM Savings and Loans and Sharia Financing (KSPPS)

Bambang Agus Sumantri

Abstract


Purpose - This study aims to determine the relationship between intellectual capital, innovation, knowledge management and organizational performance.

Design / methodology / approach - The conceptualization model of the relationship between the three constructs is tested through structural equation modeling in a sample of 250 Sharia Savings and Loans and Financing Cooperatives (KSPPS) from the database of the Office of Cooperatives and SMEs in East Java Province.

Research limitations / implications - Data is limited to a sample of one province and 250 MSME Savings and Loans and Sharia Financing Cooperatives (KSPPS).

Research question:

1. Does intellectual capital affect innovation positively?

2. Does intellectual capital affect knowledge management positively?

3. Does intellectual capital have a positive effect on organizational performance?

4. Does knowledge management affect innovation positively?

5. Does knowledge management have a positive effect on organizational performance?

6. Does the innovation affect performance positively?

7. Does innovation mediate intellectual capital and organizational performance?

8. Does Innovation mediate knowledge management and organizational performance?

9. Does knowledge management mediate intellectual capital and organizational performance?

Originality / value - until now there are still few other studies examining the effect of HR performance on intellectual capital. Therefore, this study contributes to understanding the intellectual capital and knowledge management innovations needed to operationalize it, including its relation to HR performance.

 

 

Keywords: Intellectual Capital, Innovation, Knowledge Management, Organizational Performance.

References


Agliata, Francesco., Tuccillo, Danilo., Rey, Andrea., Roberto, Fabiana., Intellectual Capital and Value Creation Process in Family Firm: A New Combined Model, Journal of Human Resource Management. Vol. 7, No. 4, 2019, pp. 108-119. doi: 10.11648/j.jhrm.20190704.15

Agostini, L., Nosella, A., & Filippini, R. (2017). Does intellectual capital allow improving innovation performance? A quantitative analysis in the SME context. Journal of Intellectual Capital, 18(2), 400–418. doi:10.1108/JIC-05-2016-0056

Ahmed, S.S., Guozhu, J., Mubarik, S., Khan, M. and Khan, E. (2019), "Intellectual capital and business performance: the role of dimensions of absorptive capacity", Journal of Intellectual Capital, Vol. 21 No. 1, pp. 23-39.

Aseanty, D. (2016). Intellectual capital and sustainable growth in small and medium enterprises in Indonesia. OIDA International Journal of Sustainable Development, 9(10), 41–50.

Bellucci, M., Marzi, G., Orlando, B. and Ciampi, F. (2020), "Journal of Intellectual Capital: a review of emerging themes and future trends", Journal of Intellectual Capital, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIC-10-2019-0239

Bontis, N., Ciambotti, M., Palazzi, F. and Sgro, F. (2018), "Intellectual capital and financial performance in social cooperative enterprises", Journal of Intellectual Capital, Vol. 19 No. 4, pp. 712-731. https://doi.org/10.1108/JIC-03-2017-0049

Campbell, J.M. and Park, J. (2017), “Extending the resource-based view: effects of strategic orientation toward community on small business performance”, Journal of Retailing and Consumer Services, Vol. 34, pp. 302-308. DOI: 10.1016/j.jretconser.2016.01.013

Claver-Cort_es, E., Zaragoza-S_aez, P.C., Molina-Manch_on, H. and _Ubeda-Garc_ıa, M. (2015), “Intellectual capital in family firms: human capital identification and measurement”, Journal of Intellectual Capital, Vol. 16 No. 1, pp. 199-223.

Cleary, P. and Quinn, M. (2016), "Intellectual capital and business performance: An exploratory study of the impact of cloud-based accounting and finance infrastructure", Journal of Intellectual Capital, Vol. 17 No. 2, pp. 255-278. https://doi.org/10.1108/JIC-06-2015-0058

Demartini, Maria Chiara and Beretta, Valentina (2019): Intellectual capital and SMEs’ performance: A structured literature review, Journal of Small Business Management To link to this article: https://doi.org/10.1080/00472778.2019.1659680

Edvinsson, L., & Sullivan, P. (1996). Developing a model for managing intellectual capital. European Management Journal, 14(4), 356–364. doi:10.1016/0263-2373(96)00022-9

Firer, S., & Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. doi:10.1108/14691930310487806 (didownload 16 September 2020).

Garanina, Tatiana Andreeva Tatiana, (2016) "Do all elements of intellectual capital matter for organizational performance? Evidence from Russian context.", Journal of Intellectual Capital, Vol. 17 Iss 2 pp. - Permanent link to this document: http://dx.doi.org/10.1108/JIC-07-2015-0062

Gomezelj Omerzel, D., & Smolčić Jurdana, D. (2016). The influence of intellectual capital on innovativeness and growth in tourism SMEs: empirical evidence from Slovenia and Croatia. Economic Research-Ekonomska Istraživanja, 29(1), 1075–1090. doi:10.1080/ 1331677X.2016.1211946

Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections: A decade of intellectual capital accounting research. British Accounting Review, 44(2), 68–82. doi:10.1016/j.bar.2012.03.004

Hejazi, Rezvan., Ghanbari, Mehrdad., and Alipour, Mohammad (2016), Intellectual, Human and Structural Capital Effects on Firm Performance as Measured by Tobin’s Q, Knowledge and Process Management Volume 23 Number 4 pp 259–273 Published online in Wiley Online Library. DOI: 10.1002/kpm.1529

Ismail, K., & Karem, M. A. (2011). Intellectual capital and financial performance of banks in Bahrain. Journal of Business Management and Accounting, 1(1), 63–77.

Jardon, C. M., & Dasilva, A. (2017). Intellectual capital and environmental concern in subsistence small businesses. Management of Environmental Quality: An International Journal, 28(2), 214–230. doi:10.1108/MEQ-05-2015-0085 (didownload 16 September 2020).

Kamath, B. G. (2007). The intellectual capital performance of the Indian banking sector. Journal of Intellectual Capital, 8(1), 96–123. doi:10.1108/14691930710715088 (didownload 16 September 2020).

Kato, M., Okamuro, H., & Honjo, Y. (2015). Does founders’ human capital matter for innovation? Evidence from J apanese start-ups. Journal of Small Business Management, 53(1), 114–128. doi:10.1111/jsbm.2015.53.issue-1

Khalique, M., Isa, A. H. M., Bin Shaari, J. A. N., & Hassan, M. K. H. (2014). Constructing an index of entrepreneurial competencies and intellectual capital for ICT SMEs in Malaysia. The 6th International Borneo Business Conference, Kuching, Sarawak, Malaysia.

Khoshmaram, M., Shiri, N., Shinnar, R. S., & Savari, M. (2018). Environmental support and entrepreneurial behavior among iranian farmers: The mediating roles of social and human capital. Journal of Small Business Management. doi:10.1111/jsbm.12501

Kim, T., Kim, W.G., Park, S.S., Lee, G. and Lee, J. (2012), “Intellectual capital and business performance: what structural relationships do they have in upper-upscale hotels?”, International Journal of Tourism Research, Vol. 14, January, pp. 391-408, https://doi.org/10.1177/1467358413519468

Lee, H., Kelley, D., Lee, J., & Lee, S. (2012). SME survival: The impact of internationalization, technology. Journal of Small Business Management, 50(1), 1–19. doi:10.1111/j.1540- 627X.2011.00341.x

Massaro, M., Dumay, J., & Bagnoli, C. (2015). Where there is a will there is a way: IC, strategic intent, diversification and firm performance. Journal of Intellectual Capital, 16(3), 490–517. doi:10.1108/JIC-07-2014-0091

Massaro, M., Handley, K., Bagnoli, C., & Dumay, J. (2016). Knowledge management in small and medium enterprises: a structured literature review. Journal of Knowledge Management, 20(2), 258–291. doi:10.1108/JKM-08-2015-0320

McDowell, W.C., Peake, Whitney O. ., Coder, LeAnne., Harris, Michael L., (2018) Building small firm performance through intellectual capital development: Exploring innovation as the “black box”, Journal of Business Research, https://doi.org/10.1016/j.jbusres.2018.01.025

Pedro, Eugénia., Leitão, Joã., Alves, Helena., (2016) "Intellectual capital and performance: taxonomy of components and multidimensional analysis axes", Journal of Intellectual Capital, https://doi.org/10.1108/JIC-11-2016-0118

Pedro, E., Leit~ao, J. and Alves, H. (2018), “Back to the future of intellectual capital research: a systematic literature review”, Management Decision, Vol. 56 No. 11, pp. 2502-2583.

Pirozzi, Maria Grazia, Ferulano, Giuseppe Paolo., (2016),"Intellectual Capital and Performance Measurement in Healthcare Organizations: an Integrated New Model.", Journal of Intellectual Capital, Vol. 17 Iss 2 pp. -Permanent link to this document: http://dx.doi.org/10.1108/JIC-07-2015-0063

Rastogi, P. N. (2003). The nature and role of IC. Journal of Intellectual Capital, 4(2), 227–248. doi:10.1108/14691930310472848 (didownload 16 September 2020).

Razafindrambinina, D., & Anggreni, T. (2017). Intellectual capital and corporate financial performance of selected listed companies in Indonesia. Malaysian Journal of Economic Studies, 48(1), 61–77.

Sharmelly, Rifat (2017) "Crafting a winning innovation strategy", Strategic Direction, Vol. 33 Issue: 3, pp.8-11, https://doi.org/10.1108/SD-11-2016-0151

Roos, G., Bainbridge, A., & Jacobsen, K. (2001). Intellectual capital analysis as a strategic tool, Strategy & Leadership, 29, 21–26.

Russell, M. (2017). Management incentives to recognise intangible assets. Accounting and Finance, 57(S1), 211–234. doi:10.1111/acfi.12154

Sardo, F., Serrasqueiro, Z. and Alves, H. (2018), “On the relationship between intellectual capital and financial performance: a panel data analysis on SME hotels”, International Journal of Hospitality Management, Vol. 75, January, pp. 67-74, doi: 10.1016/j.ijhm.2018.03.001.

Scafarto, Vincenzo., and Scafarto, Federica Ricci Francesco (2016),"Intellectual capital and firm performance in the global agribusiness industry: the moderating role of human capital", Journal of Intellectual Capital, Vol. 17 Iss 3 pp. - Permanent link to this document: http://dx.doi.org/10.1108/JIC-11-2015-0096

Ting, Irene Wei Kiong., Ren, Chunya., Chen, Fu-Chiang., Kweh, Qian Long., (2020) Interpreting the dynamic performance effect of intellectual capital through a value-addedbased perspective Journal of Intellectual Capital Vol. 21 No. 3, 2020 pp. 381-401 © Emerald Publishing Limited 1469-1930 DOI 10.1108/JIC-05-2019-0098

Wang, T., & Zatzick, C. (2018). Human capital acquisition and organizational innovation: a temporal perspective. Academy of Management Journal, 62(1), 99–116.

Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic Management Journal, 18(4), 303–319. doi:10.1002/(ISSN)1097-0266

Wang, zhining wang nianxin., and ye , jinwei cao xinfeng (2016),"The impact of intellectual capital - knowledge management strategy fit on firm performance", Management Decision, Vol. 54 Iss 8 pp. - Permanent link to this document: http://dx.doi.org/10.1108/MD-06-2015-0231

William C. McDowell, Whitney O. Peake, LeAnne Coder, Michael L. Harris, (2018), Building small firm performance through intellectual capital development: Exploring innovation as the “black box” Journal of Business Research, https://doi.org/10.1016/j.jbusres.2018.01.025

Xu, Xin-long; Yang, Xiao-nan; Zhan, Liang; Liu, Cheng Kun; Zhou,Ni-di: and Hua, Meimei. (2017). Examining the Relationship Between Intellectual Capital and Performance of Listed Environmental Protection Companies. Wiley Online Library (wileyonlinelibrary.com). DOI 10.1002/ep.12572

Yu, A., Garcia-Lorenzo, L., & Kourti, I. (2017). The role of Intellectual Capital Reporting (ICR) in organisational transformation: A discursive practice perspective. Critical Perspectives on Accounting, 45, 48–62. doi:10.1016/j.cpa.2017.01.003


Refbacks

  • There are currently no refbacks.