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)

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.