| dc.description.abstract | MSME performance reflects the success of the business in achieving its business objectives, both from financial and non-financial aspects. Good performance will show that MSMEs are able to survive, compete and thrive in a dynamic business environment. Therefore, an understating of the factors that influence the performance of MSMEs is needed. This study aims to analyze the effect of Intellectual Capital which consists of Human Capital, Structural Capital, and Relational Capital, as well as Business Sustainability on MSME Performance in North Sumatra. This study also aims to explain the role of Innovation Capability as an intervening variable in the relationship between Intellectual Capital and Business Sustainability on MSME performance.
The approach used in this research is mix methods, which is a combination of quantitative and qualitative methods. The quantitative method is used to test the relationship between variables through the PLS-SEM analysis technique with the help of SmartPLS software, while the qualitative approach is used to deepen quantitative results by analyzing interview data through NVivo software. The population in this study were MSME actors in North Sumatra. Sampling refers to the Krejcie and Morgan table, which is 384 MSMEs.
The results showed that Human Capital, Structural Capital Relational Capital, and Business Sustainability have a positive and significant effect on Innovation Capability. As well as Human Capital, Relational Capital, and Intellectual Capital have a positive and significant effect on Innovation Capability. Other findings show that Innovation Capability is able to mediate the influence of Intellectual Capital and Business Sustainability on MSME Performance. The implication of this research shows that Innovation Capability is a strategic factor in driving MSME performance. Innovation Capability can be strengthened through the development of Human Capital, Structural Capital, and strengthening Relational Capital which opens access to information and market opportunities. In addition, commitment to Business Sustainability also encourages the creation of innovations that contribute to business sustainability economically, socially, and environmentally. | en_US |
