Intellectual Capital Dimensions, Innovation Capability, and Performance of Culinary MSMEs in North Sumatra

Putri Kemala Dewi Lubis; Atika Rahmi; Namira Ufrida Rahmi; Irna Triannur Lubis

doi:10.59261/inkubis.v8i4.493

Authors

Putri Kemala Dewi Lubis Universitas Negeri Medan
Atika Rahmi Universitas Muhammadiyah Bekasi Karawang
Namira Ufrida Rahmi Universitas Prima Indonesia
Irna Triannur Lubis Universitas Battuta

DOI:

https://doi.org/10.59261/inkubis.v8i4.493

Keywords:

Intellectual Capital, Human Capital, Structural Capital, Relational Capital, Innovation Capability, MSME Performance

Abstract

Background: Culinary micro, small, and medium enterprises (MSMEs) depend substantially on knowledge-based resources and innovation to maintain competitiveness and improve business performance. However, the contributions of human, structural, and relational capital may differ, while the role of innovation capability in strengthening these relationships remains inconclusive.

Objective: This study examines the direct effects of human capital, structural capital, relational capital, and innovation capability on culinary MSME performance and evaluates whether innovation capability moderates the relationships between intellectual capital dimensions and performance.

Methods: A quantitative explanatory survey was conducted involving 350 owners or managers of culinary MSMEs in North Sumatra, Indonesia, in 2025. Respondents were selected using purposive sampling, and the research model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.

Results: Human capital, relational capital, and innovation capability positively affect MSME performance, whereas structural capital does not have a significant direct effect. Innovation capability emerges as the strongest predictor of performance (β = 0.525), while all interaction effects involving innovation capability are nonsignificant. The model explains 65.1% of the variance in MSME performance.

Conclusion: The dimensions of intellectual capital contribute differently to culinary MSME performance, while innovation capability functions primarily as an independent strategic capability rather than as a moderator. Culinary MSMEs should prioritize human competence, external relationships, and continuous innovation while strengthening organizational systems that can convert knowledge resources into sustainable business performance.

Downloads

Download data is not yet available.

References

Arshad, M. Z., Arshad, D., Lamsali, H., Alshuaibi, A. S. I., Alshuaibi, M. S. I., Albashar, G., Shakoor, A., & Chuah, L. F. (2023). Strategic resources alignment for sustainability: The impact of innovation capability and intellectual capital on SMEs’ performance Moderating role of external environment. Journal of Cleaner Production, 417, 137884. https://doi.org/10.1016/j.jclepro.2023.137884

Ashraf, S., Sadiq, M., Ferreira, P., & Almeida, A. M. (2023). Intellectual capital and a firm’s sustainable performance and growth before and during the COVID-19 crisis: A comparative analysis of small and large European hospitality firms. Sustainability, 15(12), 9743. https://doi.org/10.3390/su15129743

Astuti, P. D., Datrini, L. K., & Chariri, A. (2023). Understanding the antecedents and consequences of sustainable competitive advantage: Testing intellectual capital and organizational performance. Economies, 11(4), 120. https://doi.org/10.3390/economies11040120

Bansal, S., Garg, I., Jain, M., & Yadav, A. (2023). Improving the performance/competency of small and medium enterprises through intellectual capital. Journal of Intellectual Capital, 24(3), 830–853. https://doi.org/10.1108/JIC-07-2021-0189

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Barney, J. B., Ketchen Jr., D. J., & Wright, M. (2021). Resource-based theory and the value creation framework. Journal of Management, 47(7), 1936–1955. https://doi.org/10.1177/01492063211021655

Beltramino, N. S., García-Pérez-de-Lema, D., & Valdez-Juárez, L. E. (2020). The structural capital, the innovation and the performance of the industrial SMEs. Journal of Intellectual Capital, 21(6), 913–945. https://doi.org/10.1108/JIC-01-2019-0020

Beltramino, N. S., García-Pérez-de-Lema, D., & Valdez-Juárez, L. E. (2022). The role of intellectual capital on process and products innovation: Empirical study in SMEs in an emerging country. Journal of Intellectual Capital, 23(4), 741–764. https://doi.org/10.1108/JIC-07-2020-0234

Bontis, N. (1998). Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142

Bontis, N. (2023). Intellectual Capital: An Exploratory Study That Develops Measures and Models. In The Strategic Management of Intellectual Capital and Organizational Knowledge (pp. 643–655). Oxford University PressNew York, NY. https://doi.org/10.1093/oso/9780195138665.003.0036

Bontis, N., Chua Chong Keow, W., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1108/14691930010324188

Cahyaningati, R., Chandrarin, G., Cahyaningsih, D. S., & Duta, M. R. R. (2026). Sustaining MSME Competitiveness through Innovation: The Mediating Effect of Innovation on Intellectual Capital and Corporate Social Responsibility. Architecture Image Studies (AIS), 7(1), 1513.

Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41(2). https://doi.org/10.1007/s10490-023-09871-y

Costa, R. V., Fernández-Jardon Fernández, C., & Figueroa Dorrego, P. (2014). Critical elements for product innovation at Portuguese innovative SMEs: an intellectual capital perspective. Knowledge Management Research & Practice, 12(3), 322-338.

Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. https://doi.org/10.1002/smj.4250171110

Grant, R. M., & Phene, A. (2022). The knowledge-based view and global strategy: Past impact and future potential. Global Strategy Journal, 12(1), 3–30. https://doi.org/10.1002/gsj.1399

Hair Jr., J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications. https://search.worldcat.org/title/1268396160

Hanifah, H., Abd Halim, N., Vafaei-Zadeh, A., & Nawaser, K. (2022). Effect of intellectual capital and entrepreneurial orientation on innovation performance of manufacturing SMEs: mediating role of knowledge sharing. Journal of Intellectual Capital, 23(6), 1175-1198.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Hermawan, S., Fediyanto, N., Hariyanto, W., Utomo, P., & Dini, A. N. (2023). How intellectual capital can develop innovation and performance of accounting study program? Jurnal Reviu Akuntansi Dan Keuangan, 13(3), 546–569. https://doi.org/10.22219/jrak.v13i3.26598

Mella-Barral, P. (2024). A resource-based view of entrepreneurial spin-outs. Review of Financial Economics, 42(3). https://doi.org/10.1002/rfe.1207

Pereira, V., & Bamel, U. (2021). Extending the resource and knowledge-based view: A critical analysis into its theoretical evolution and future research directions. Journal of Business Research, 132, 557–570. https://doi.org/10.1016/j.jbusres.2021.04.021

Rustiarini, N. W., Bhegawati, D. A. S., & Mendra, N. P. Y. (2022). Does green innovation improve SME performance? Economies, 10(12), 316. https://doi.org/10.3390/economies10120316

Selivanovskikh, L. (2023). Exploring firm innovation capability as the ‘black box’between human capital and performance in Russian SMEs. Journal of Developmental Entrepreneurship, 28(01), 2350007.

Statistik, B. P. (2026). Indonesia’s economic growth in 2025 was 5.11 percent. Badan Pusat Statistik. https://www.bps.go.id/en/pressrelease/2026/02/05/2546/indonesia-s-economic-growth-in-2025-was-5-11-percent.html

Stoian, M. C., Tardios, J. A., & Samdanis, M. (2024). The knowledge-based view in international business: A systematic review of the literature and future research directions. International Business Review, 33(2). https://doi.org/10.1016/j.ibusrev.2023.102239

Sugianto, N. A. P., Pratama, B. C., Hariyanto, E., & Hapsari, I. (2024). The mediating role of knowledge sharing in the relationship between human capital, structural capital, spiritual capital, and MSMEs innovation. Journal of Enterprise and Development (JED), 6(1), 64-76.

Truong, B. T. T., & Nguyen, P. V. (2024). Driving business performance through intellectual capital, absorptive capacity, and innovation: The mediating influence of environmental compliance and innovation. Asia Pacific Management Review, 29(1), 64–75. https://doi.org/10.1016/j.apmrv.2023.06.004

Utami, W., Pernamasari, R., Chairunisa, M., & Tanjung, J. (2025). Competitive Advantage in Moderating the Three Pillars of ESG on Firm Value. International Journal of Economics and Financial Issues , 15(4). https://doi.org/10.32479/ijefi.19099

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207