Intellectual Capital Determinant and Company’s Values

Authors

  • VIDYARTO NUGROHO Lecturer in the Economics Faculty of Tarumanagara University

Abstract

This research will analyze intellectual capital’s influence towards company’s competitive
advantage, intellectual capital and competitive advantage’s influences toward company’s performance,
company’s competitive advantage and performance’s influences toward company’s values, and mediation of
intellectual capital’s influence toward company’s performance through competitive advantage. Explanatory
research with quantitative approach is used to understand the intellectual capital’s influence on company’s
competitive advantage and performance as well as its impact towards company’s values. This research will
test the hypotheses using statistical path analysis and panel data regression. 43 banking companies registered
in Indonesia Stock Exchange by 2017 are considered as the research population from which will be taken 37
suitable banks as sample. The results of this research show (1) Value added capital employed (VACA) and
structural capital value added (STVA) are not influential toward competitive advantage. Value added human
capital (VAHU) is influential towards competitive advantage; (2) VACA, STVA, and VAHU are influential
toward company’s performance; (3) competitive advantage is not influential toward company’s value,
whereas company’s performance is influential toward company’s values; and (4) VAHU, VACA, and STVA
are indirectly influential toward company’s performance through competitive advantage is not supported due
to path Y1 to Y2 is not significant. This brief explanation leads to a conclusion that competitive advantage is
not able to mediate intellectual capital’s influence towards company’s performance. This research may
confirm that value added human capital (VAHU), as one of the intellectual capital indicators, needs to be
increased in order to ameliorate banking company’s competitive advantage and performance. The active
involvement of shareholders is significant to support the company’s commitment and boost its performance
to survive in any condition and increase company’s values to attract more investors.
Keywords: Intellectual Capital, Competitive Advantage, Company’s Performance, Company’s Values

References

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Published

2019-07-31

Issue

Vol. 8 No. 7 (2019): Innovative Journal of Business and Management

Section

Articles

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