Intellectual Capital and Strategic Flexibility Effect the Performance Companies in Small and Medium Enterprises in Malang-Indonesia

Siti Aisjah

Abstract


This study for the development of empirical studies on knowledge-based economy on small and medium enterprises (SMEs) using knowledge efficiently, increasing the company’s potential to support competitive advantage. The development of intellectual capital (IC) for the company to create added value for consumers and product value creation as the success of the company’s performance by resource-based theory and the improvement of public welfare through the empowerment of SMEs. IC and strategic flexibility affect the performance companies in SMEs in Malang-Indonesia. Research was conducted in SMEs creative industry located in the district and the city of Malang that supervised by the Department of Micro SMEs, Malang in 2015, the number were identified are 113 business units. The analysis used in this study is the SEM-PLS using WarpPLS. These results indicate that the effect from IC significant to a company performance and influences strategic flexibility. The study explained that strategic flexibility significant to the company performance. Management and empowerment of IC owned SMEs (human capital, structural capital, and relational capital) have an effect on the achievements of the company’s performance. The better the IC demonstrating proficiency in selecting and implementing strategies and determines the shape of the company’s ability to respond to the needs of each customer so that will determine the course of business success. The results of this study cannot be applied in general.

Aus. Aca. Acc & Fin. Rev Vol 3(3), Jul 2017, P 98-110

Keywords


Intellectual Capital; Strategic Flexibility; Performance Companies; Small and Medium Enterprises in Malang Indonesia

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