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Understanding the Antecedents and Consequences of Sustainable Competitive Advantage: Testing Intellectual Capital and Organizational Performance

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  • Partiwi Dwi Astuti

    (Faculty of Economics and Business, Universitas Warmadewa, Denpasar 80235, Indonesia)

  • Luh Kade Datrini

    (Faculty of Economics and Business, Universitas Warmadewa, Denpasar 80235, Indonesia)

  • Anis Chariri

    (Faculty of Economics and Business, Universitas Diponegoro, Semarang 50275, Indonesia)

Abstract

This study aimed to investigate the relationship between intellectual capital (human capital, relational capital, and structural capital) and sustainable competitive advantage, and the relationship between sustainable competitive advantage and organizational performance. The sample used was 308 SMEs located in Denpasar, Bali Province, Indonesia. Data were collected using a questionnaire that was sent directly to the CEO of the SMEs. Data were analyzed using SEM-PLS with WarpPLS 8.0. The findings show that there is a significant positive relationship between each dimension of intellectual capital (human capital, relational capital, and structural capital) and sustainable competitive advantage. Sustainable competitive advantage is also significantly and positively related to organizational performance. This study contributes to the understanding of intellectual capital in the value creation process of SMEs in developing countries. This study also enriches the previously developed conceptualization of intellectual capital by proposing intellectual capital as an important variable underlying the sustainability practices of companies, which allows them to achieve superior performances.

Suggested Citation

  • Partiwi Dwi Astuti & Luh Kade Datrini & Anis Chariri, 2023. "Understanding the Antecedents and Consequences of Sustainable Competitive Advantage: Testing Intellectual Capital and Organizational Performance," Economies, MDPI, vol. 11(4), pages 1-14, April.
  • Handle: RePEc:gam:jecomi:v:11:y:2023:i:4:p:120-:d:1124520
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    References listed on IDEAS

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    1. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    2. Kong, Eric & Ramia, Gaby, 2010. "A qualitative analysis of intellectual capital in social service non-profit organisations: A theory–practice divide," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 656-676, November.
    3. Dina Patrisia & Muthia Roza Linda & Abror Abror, 2022. "Creation of competitive advantage in improving the business performance of banking companies," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 26(2), pages 121-137.
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