Intellectual Capital and Sustainable Growth in Small and Medium Enterprises in Indonesia
10 Pages Posted: 11 Jan 2017
Date Written: October 30, 2016
This research aims to determine impact of intellectual capital on sustainable growth in small and medium enterprises (SME) in Indonesia, particularly in Central Java. In Indonesia, despite SMEs’ have significant contribution to the national economy, they have not been given adequate attention as the various researchers have been biased towards larger and listed enterprises in Indonesia. Research about SME in Indonesia, especially about its relationship with its human resources, is still few comparing with any other topic.The objectives of the study is to to see how intellectual capital, that is reflected through innovativeness, skills, competency, and knowledge influence the SME’s sustainability itself. The research method used in this study was a descriptive study conducted to determine and describe the characteristics of several variables in a given situation. Data was collected by means of questionnaires administered to 100 SME in Central Java, which is known as the area with huge number of small and medium enterprises. Collected data was presented and analyzed using tables and bar charts as extracted from Statistical Packages for Social Sciences (SPSS). Before doing the next analyzing, we use validity and reliability test in order to avoid error that typically occurred in the analysis that is used primary data. Lastly, multiple regression analysis is used to analyze the impact of each indicator of intellectual capital on organizational sustainability of SME. This study is significant not only for the owners/managers of SMEs but also for the policy makers.
Keywords: Human Resources Management, Small and Medium Enterprise, Intellectual Capital, Sustainability, Central Java
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