The Influence Of Intellectual Capital On The Performance Of Small And Medium Enterprises In North Sumatera Province

Abstract

This research investigates how Intellectual Capital—comprising Human Capital, Structural Capital, and Relational Capital—affects the performance of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra. This study adopts a quantitative research approach to investigate the relationship between intellectual capital and the performance of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra Province. The primary data used in this research were collected through structured questionnaires distributed online using Google Forms. The questionnaire links were shared via email and social media platforms, particularly WhatsApp, to facilitate broader participation among MSME actors across the region. Using a quantitative methodology and data collected via online questionnaires, the study applied Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS software for analysis. The findings indicate that both Human and Relational Capital have significant positive influences on MSME performance, whereas Structural Capital does not demonstrate a measurable impact. These insights suggest that developing human resource capabilities and external business relationships is crucial to enhancing MSME outcomes in the region. This study finds that the components of intellectual capital exert varying degrees of influence on the performance of MSMEs in North Sumatra. Human capital demonstrates a clear and statistically significant positive impact, suggesting that enhancing workforce capabilities—such as expertise, competencies, and practical knowledge—can substantially elevate business outcomes. In contrast, structural capital does not exhibit a notable influence, indicating that current organizational frameworks, internal systems, and operational procedures may not yet be effectively leveraged to boost performance. On the other hand, relational capital shows a significant and positive effect, highlighting the importance of robust external networks with customers, suppliers, and partners in supporting business growth. These insights suggest that prioritizing the development of both human and relational capital is essential for advancing the performance and sustainability of MSMEs in the region.