The Disruption Challenge in Building Business Viability of SMEs Through Virtual Capital Ownership

Abdul Aziz Bagis


Purpose – The purpose of this paper is to build the viability of SMEs, in today's disruption era that requires the main power that comes from its owner-managers, which reflects the ownership of virtual capital.

Design/methodology/approach – This study examined the influence of intellectual capital, social capital, and credibility capital in facing the challenges of triple disruptions and the subsequent impact on business continuity. Statistical analyses were based on the data collected, through a survey questionnaire from 385 SMEs in the West Nusa Tenggara, Indonesia, with moderated multiple regression analysis. 

Findings – Based on the results of the study, it shows that the economic challenges of disruption have a negative effect on the role of virtual capital in building SMEs business viability. In addition, the results of this study also show that triple disruptions mediate the relationship between virtual capital and business viability. It can be proven that SMEs actors in West Nusa Tenggara, Indonesia who can survive and serve in the current decade of disruption, are SMEs actors who run their business activities based on intellectual intelligence, emotional intelligence that can build business networks and developed based on a high level of mutual trust. This study was limited to a sample selection covering only one province in West Nusa Tenggara, Indonesia which limits the generalizability of the findings. 

Keywords: Intellectual Capital, Social Capital, Credibility Capital, Business Viability, Economic Disruption

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