Purpose: MSMEs play a critical role in the growth of the halal tourism sector. The goal of this study is to examine how MSME organizational performance is affected by the factors that make up their intellectual capital, which includes their human, relational, and structural capital as well as their spiritual capital.
Methodology/approach: This research used a sample of MSME owners and operators in the western region of the province of Central Java. Structural equation modeling was used in this study's investigation.
Findings: Relational capital, structural capital, and spiritual capital all have significant positive effects on MSMEs' organizational performance, according to the findings of the data analysis and explanation that have been provided. However, this research was unable to provide evidence to substantiate the relationship between human capital and MSME performance.
Practical implications: According to the study's findings, managers and owners of MSMEs need to have strong intellectual and spiritual capital if they want to increase the performance of their companies. MSME should thus focus on managing such capital.
Originality/value: In addition to prove the role of Intellectual capital in MSME performance, this study also proves the importance of spiritual capital for halal-tourism business.
Ariawan., Sudarma, M., Djumahir, & Ghozali. (2016). The Role Of Spiritual Capital, Human Capital, Structural Capital, And Relational Capital Of Smes To Improving On Performance: Study Literature. South East Asia Journal of Contemporary Business, Economics and Law, 11(2), 87 – 94.
Asiaei, K., & Jusoh, R. (2015). A Multidimensional View of Intellectual Capital: The Impact on Organizational Performance. Management Decision, 53(3), 668 – 697.
Baker, C., & Smith, G. (2010). Spiritual, Religious and Social Capital – Exploring Their Dimensions and Their Relationship With Faith-Based Motivation and Participation In UK Civil Society. The BSA Sociology of Religion Group Conference, 1-40.
Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120.
Bolton, M. (2003). Public Sector Performance Measurement: Delivering Greater Accountability. Work Study, 5(1), 20 – 24.
Bontis, N., Keow, W.C.C. and Richardson, S. (2000), “Intellectual capital and business performance in Malaysian industries”, Journal of Intellectual Capital, Vol. 1 No. 1, pp. 85-100.
Chidi C. O., Shadare O. A. 2011. “Managing Human Capital Development in Small and Medium-Sized Enterprises for Sustainable National Development in Nigeria,” International Journal of Management & Information Systems (IJMIS), vol. 15, no. 2, pp. 95-104.
Clarke M., Seng D., Whiting R. H. 2011. “Intellectual Capital and Firm Performance in Australia,” Journal of Intellectual Capital, vol. 12, no. 4, pp. 505-530.
Cohen, S. and Kaimenakis, N. (2007), “Intellectual capital and corporate performance in knowledge-intensive SMEs”, The Learning Organization, Vol. 14 No. 3, pp. 241-262.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates, Publishers.
Edvinsson, L. and Malone, M.S. (1997), Realizing Your Company’s True Value by Finding Its Hidden Brain Power, HarperCollins Publishers, New York, NY.
Fakhimuddin M., Khasanah U., Trimiyati R. 2011. “Database Management System in Accounting: Assessing the Role of Internet Service Communication of Accounting System Information,” Research Horizon, vol. 1, no. 3, pp. 100-105.
Fayyaz, A., Mian, S. and Khan, J. (2009), “State of entrepreneurship and globalization in Pakistan”, International Journal of Business and Globalization, Vol. 3 No. 3, pp. 271-287.
Gracia, C. (2012). Spiritual Capital The New Border To Cross. Journal of Applied Ethics, 116(3), 115–134.
Innayah, Maulida N. and Pratama, Bima C. (2020). The Effect of Intellectual Capital towards Firm Performance and Risk with Board Diversity as a Moderating Variable: Study in ASEAN Banking Firms. Jurnal Dinamika Manajemen, 11 (1), 27-38.
Innayah, Maulida N., Pratama, Bima C., and Tubastuvi, N. (2021). Board Diversity and Its Effects on Performance and Risk: A Study in Banking Firms in Indonesia. Journal of Accounting and Investment, 22(1), 206-220.
Jardon, C. M. and Martos, M. S. (2012). Intellectual capital as competitive advantage in emerging clusters in Latin America. Journal of Intellectual Capital, Vol. 13 No. 4.
Johnson, W. H. A. (1999). Integrative taxonomy of intellectual capital: Measuring the stock and flow of intellectual capital components in the firm. International Journal of Technology Management, 18(5), 562–575.
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J. and Hassan Md. Isa, A. (2015) ‘Intellectual capital in small and medium enterprises in Pakistan’, Journal of Intellectual Capital, Vol. 16, No. 1, pp.224–238.
Khalique, Muhammad & Bontis, Nick & Shaari, Jamal & Yaacob, Mohd & Rohana, Ngah. (2018). Intellectual capital and organisational performance in Malaysian knowledge-intensive SMEs. International Journal of Learning and Intellectual Capital. 15. 20. 10.1504/IJLIC.2018.088345.
Malik, M. S., & Tariq, S. (2016). Impact of Spiritual Intelligence on Organizational Performance. International Review of Management and Marketing, 6(2), 289 – 297.
Martín-de-Castro G., Delgado-Verde M., López-Sáez P., Navas-López J. E. 2011. “Towards ‘an Intellectual Capital-Based View of the Firm’: Origins and Nature,” Journal of Business Ethics, vol. 98, no. 4, pp. 649-662.
Mondal, A., & Ghosh, S. K. (2012). Intellectual capital and financial performance of Indian banks. Journal of Intellectual Capital, 13(4), 515–530.
Nazari, J. A., & Herremans, I. M. (2007). Extended VAIC model: measuring intellectual capital components. Journal of Intellectual Capital, 8(4), 595–609.
Obeidat, B. Y., Abdullah, A. B., Aqqad, N. O., Akhoershiedah, A.H.O.M., & Maqableh, M. (2017). The Effect of Intellectual Capital on Organizational Performance: The Mediating Role of Knowledge Sharing. Communications and Network, 9, 1 – 27.
Palmer, D. A., & Wong, M. (2013). Clarifying the Concept of Spiritual Capital. The Conference on the Social Scientific Study of Religion, The Chinese University of Hong Kong.
Pratama, Bima C. and Innayah, Maulida N. (2021). Can Family Ownership Strengthen The Relationship Between Intellectual Capital And Performance In Asean High-Tech Firms?. International Journal of Business and Society, 22 (3), 1102-1122.
Pratama, Bima C., Ismoyowati, I. and Innayah, Maulida N. (2019). Livestock and Animal Specialities Company in ASEAN: Intellectual Capitals and Performances. IOP Conf. Series: Earth and Environmental Science, 372, 1-8.
Pratama, Bima C., Kamaluddin, A. and Saad, S. (2022). Social Performance of Islamic Banks in South-East Asia: Is Intellectual Capital and Sharia Supervisory Boards Matters?. Quality Access to Success, 23 (186), 141-150
Ployhart R. E., Van Iddekinge C. H., MacKenzie Jr W. I. 2011. “Acquiring and Developing Human Capital in Service Contexts: The Interconnectedness of Human Capital Resources,” Academy of Management Journal, vol. 54, no. 2, pp. 353-368.
Pudjiarti E. S., Hutomo P. T. P. 2020. “The Critical Role of Effective Organizational Learning to Improve Firm’s Innovation and Performance in a Market Turbulence Condition,” International Journal of Innovation Science, vol. 12, no. 3, pp. 237-254.
Ray, G., Barney, J. B., & Muhanna, W. A. (2004). Capabilities, business processes, and competitive advantage: Choosing the dependent variable in empirical tests of the resource-based view. Strategic Management Journal, 25(1), 23–37.
Roos, G., Roos, J., Edvinsson, L. and Dragonetti, N.C. (1997), Intellectual Capital-Navigating in the New Business Landscape, New York University Press, New York, NY.
Shahzad F., Luqman R. A., Khan A. R., Shabbir L. 2012. “Impact of Organizational Culture on Organizational Performance: An Overview,” Interdisciplinary Journal of Contemporary Research in Business, vol. 3, no. 9, pp. 975–985.
Soetjipto N., Kurniawan G., Sulastri, Riswanto A; 2021. “The Influence of Employee Discipline, Learning and Supervision on the Service Performance of Public Works in Bina Marga Office of Ponorogo Regency,” Research Horizon, vol. 1, no. 4, 2021.
Wang, D., Feng, T. and Lawton, A. (2017), “Linking ethical leadership with firm performance: a multidimensional perspective”, Journal of Business Ethics, Vol. 145 No. 1, pp. 95-109.
Yarbrough, L., Morgan, N. A., & Vorhies, D. W. (2011). The impact of product market strategy-organizational culture fit on business performance. Journal of the Academy of Marketing Science, 39(4), 555–573.
Zéghal D., Maaloul A. 2010. “Analysing Value Added as an Indicator of Intellectual Capital and its Consequences on Company Performance,” Journal of Intellectual Capital, vol. 11, no. 1, pp. 39-60.
Zohar, D. and Marshall, I. (2004), Spiritual Capital: Wealth We Can Live By. Bloomsbury Publishing Plc.
