The Impact of Intellectual Capital and Cultural Intelligence on Innovation and Performance, with Knowledge Sharing as a Mediator in Manufacturing Companies.
DOI:
https://doi.org/10.37253/jgbmr.v6i2.9982Keywords:
Intellectual Capital, Cultural Intelligence, Knowledge Sharing, Innovation, performanceAbstract
Batam City has become a popular destination for individuals from outside the city seeking employment due to the numerous manufacturing companies established there, both from local and foreign sources. The success of these companies is influenced not only by the abilities of their workforce but also by how well employees adapt to their working environment. This study aims to explore whether intellectual capital and cultural intelligence impact innovation and performance within the manufacturing sector in Batam City, with knowledge sharing serving as a mediating variable for cultural intelligence. Utilizing a quantitative research approach, the study is supported by primary data collected through surveys in the form of questionnaires. The researchers employed SPSS and Smart PLS software to analyze variable data and test the hypotheses. The findings reveal the following: 1) intellectual capital has no effect on innovation., 2) intellectual capital positively affects performance. 3) cultural intelligence positively affects innovation., 4) cultural intelligence positively affects knowledge sharing. 5) knowledge sharing positively affects innovation., 6) innovation positevely affecs on performance, and 7) cultural intelligence affects innovation through knowledge sharing as a mediating variable. In relation to these results, this research is recommended as a reference for managers in improving innovation and performance
Downloads
References
Alharbi, A. A. (2023). The impact of intellectual capital on firm performance: A study of firms in Saudia Arabia. Scientific Journal for Financial and Commercial Studies and Research, 4(1), 375–405. https://doi.org/DOI:10.21608/cfdj.2023.258048
Aljuboori, Z. M., Singh, H., Haddad, H., Al-ramahi, N. M., & Ali, M. A. (2022). Intelligence capital and firm performance correlation: The mediation role of innovation capability in Malaysian manufacturing smes perspective. Sustainability, 14, 154. https://doi.org/https://doi.org/10.3390/su14010154
Alvino, F., Vaio, A. Di, Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development : A systematic literature review. Journal of Intellectual Capital, 22(1), 1469–1930. https://doi.org/10.1108/JIC-11-2019-0259
Angelis, C. T. De. (2023). A model of cultural intelligence to reduce deficit talent : A comparative study between Taiwan and Vietnam. International Journal of Sociology and Anthropology, 15, 24–40. https://doi.org/10.5897/IJSA2022.0954
Aybars, A., & Öner, M. (2022). The impact of intellectual capital on firm performance and value : An application of mvaic on firms listed in Borsa Istanbul. Gazi Journal Of Economics & Business, 8(1), 47–60. https://doi.org/https://doi.org/10.30855/gjeb.2022.8.1.004
Canh, N. T., Liem, N. T., & Thu, P. A. (2019). The impact on innovation on the firm performance and corporate social responsibility of Vietnamese manufacturing firms. Sustainability, 11, 3666. https://doi.org/http://dx.doi.org/10.3390/su11133666
Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41, 745–783. https://doi.org/10.1007/s10490-023-09871-y
Cindiyasari, S. A., Junarsin, E., Mada, U. G., & Septiani, E. (2022). Does intellectual capital affect financial performance? An empirical evidence from financial companies in Indonesia. 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, 1888–1898. https://doi.org/https://doi.org/10.46254/ap03.20220322
Dumay, J. (2020). Being critical about intellectual capital accounting in 2020: An overview. Critical Perspectives on Accounting, 70, 102185. https://doi.org/10.1016/j.cpa.2020.102185
Ekaningrum, Y. (2021). The Influence of intellectual capital elements on company performance. Journal of Asian Finance, Economics and Business, 8(1), 257–269. https://doi.org/10.13106/jafeb.2021.vol8.no1.257
Fan, P., Song, Y., Nepal, S., & Lee, H. (2020). Can cultural intelligence affect employee’s innovative behavior? Evidence from Chinese migrant workers in South Korea. Front. Psychol., 11, 559246. https://doi.org/10.3389/fpsyg.2020.559246
Games, D., Hidayat, T., Fhardilha, J., Fernando, Y., & Sari, D. K. (2022). The impact of trust, knowledge sharing, and affective commitment on sme innovation performance. JOURNAL OF GOVENANCE AND INTEGRITY (JGI), 5(2), 267–274. https://doi.org/https://doi.org/10.15282/jgi.5.2.2022.7184
Ghasemaghaei, M., & Calic, G. (2020). Assessing the impact of big data on firm innovation performance : Big data is not always better data. Journal of Business Research, 108, 147–162. https://doi.org/10.1016/j.jbusres.2019.09.062
Haji-othman, Y. (2022). Assesing reliability and validity of attitude construct using partial least squares structural equation modeling (pls-sem). International Journal of Academic Research in Business and Social Sciences, 12(5)(May), 378–385. https://doi.org/10.6007/IJARBSS/v12-i5/13289
Hesniati, & Erlen. (2021). The influence of intellectual capital on organizational performance. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(2), 98–109. https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/2402/1148
Hernawati, M., & Tajib, E. (2020). The influence of cultural intelligence on sustainable innovation behavior mediated by knowledge sharing and moderate by organization culture. Journal of Social Research, 3, 438–455. https://doi.org/https://doi.org/10.55324/josr.v3i2.1925
Humaira, F. P., Arief, N., & Putranto, R. (2023). The relationship of cultural intelligence, student’s innovative work behavior and the influence of interpersonal trust : Case study of Indonesian international student mobility awards. Journal Integration of Management Studies, 1(2), 203–215. https://doi.org/10.58229/jims.v1i2.102
Innayah, M. N., Pratama, B. C., & Hanafi, M. M. (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. https://doi.org/10.15294/jdm.v11i1.21487
Jayanto, J., & Putra, M. S. (2022). The role of cross-cultural adaptability to mediate the effect of cultural intelligence on knowledge sharing of workers of expatriates in Bali. International Journal of Business, Economics & Management, 5(4)(October), 328–339. https://doi.org/https://doi.org/10.21744/ijbem.v5n4.1988
Jinlong, L., Wu, N., & Xiong, S. (2021). Sustainable innovation in the context of organizational cultural diversity : The role of cultural intelligence and knowledge sharing. PLoS ONE, 16(5), 1–22. https://doi.org/10.1371/journal.pone.0250878
Lee, C., Yeh, W.-C., & Luo, Y.-C. (2023). Knowledge sharing and innovation performance: A case study on the impact of organizational culture, structural capital, human resource management practices, and relational capital of real estate agents. Humanit Soc Sci Commun, 10(51), 707. https://doi.org/https://doi.org/10.1057/s41599-023-02185-w
Mahmood, T., & Shujaat, M. (2020). Technological forecasting & social change balancing innovation and exploitation in the fourth industrial revolution : Role of intellectual capital and technology absorptive capacity. Technological Forecasting & Social Change, 160, 120248. https://doi.org/https://doi.org/10.1016/j.techfore.2020.120248
Makgopa, S. S. (2020). Towards a conceptual model of measuring the influence of service innovation on business performance. INTERNATIONAL JOURNAL OF MULTIDISCIPLINARITY IN BUSINESS AND SCIENCE, 9(14), 24–32. https://doi.org/10.56321/ijmbs
Mangla, N. (2021). Working in a pandemic and post-pandemic period – cultural intelligence is the key. International Journal of Cross Cultural Management International, 21(1), 53–69. https://doi.org/10.1177/14705958211002877
Michna, A., & Kmieciak, R. (2020). Open-mindedness culture, knowledge-sharing, financial performance, and industry 4.0 in smes. Sustainability, 12, 9041. https://doi.org/doi:10.3390/su12219041
Mukaro, C., Deka, A., & Rukani, S. (2021). The influence of intellectual capital on organizational performance. Future Business Journal, 7(31), 1–14. https://doi.org/10.1186/s43093-023-00208-1
Najar, T., Dhaouadi, K., & Zammel, I. Ben. (2020). Intellectual capital impact on open innovation: The case of technology-based sectors in Tunisia. Journal of Innovation Economics & Management, 2, 75–106. https://doi.org/10.3917/jie.032.0075
Nasution, M. I., Fahmi, M., & Prayogi, M. A. (2020). The quality of small and medium enterprises performance using the structural equation model-part least square (sem-pls). Journal of Physics: Conference Series, 1477, 052052. https://doi.org/10.1088/1742-6596/1477/5/052052
Nooria, Y., Lankut, E., Alon, I., & Richter, N. F. (2020). Cultural intelligence , global mindset , and cross- cultural competencies : A systematic review using bibliometric methods. European J. International Management, 14(2), 210–250. https://doi.org/10.1504/EJIM.2020.105567
Phonthanukitithaworn, C., Srisathan, W. A., & Ketkaew, C. (2023). Sustainable development towards openness sme innovation: Taking advantage of. Sustainability, 15, 2126. https://doi.org/https://doi.org/10.3390/su15032126
Purba, J. T., Asbari, M., Hariandja, E. S., & Sudibjo, N. (2023). The mediating role of dynamic leadership towards the relationship between knowledge-sharing behaviour and innovation performance in higher education. International Journal of Learning, Teaching and Educational Research, 22(11), 466–485. https://doi.org/https://doi.org/10.26803/ijlter.22.11.24
Purwanto, A., & Sudargini, Y. (2022). Partial least squares structural squation modeling (pls-sem) Analysis for social and management research: A literature review. Journal of Industrial Engineering & Management Research, 2(4), 114–123. https://doi.org/https://doi.org/10.7777/jiemar.v2i4
Rahmadi, I. H., & Mutasowifin, A. (2021). Pengaruh intellectual capital terhadap kinerja keuangan dan nilai perusahaan (Studi kasus perusahaan sektor keuangan yang terdaftar di bursa efek Indonesia tahun 2017-2019). Jurnal Inovasi Bisnis Dan Manajemen Indonesia, 04(02), 279–294. https://doi.org/https://doi.org/10.31842/jurnalinobis.v4i2.183
Rasoolimanesh, S. M. (2022). Discriminant validity assessment in pls-sem: A comprehensive composite-based approach. Data Analysis Perspective Journal, 3(2)(December 2021), 1–8. https://www.researchgate.net/publication/356961783_Discriminant_validity_assessment_in_PLS-SEM_A_comprehensive_composite-based_approach
Ratasuk, A., & Charoensukmongkol, P. (2020). Does cultural intelligence promote cross-cultural teams ’ knowledge sharing and innovation in the restaurant business? Asia-Pacific Journal of Business, 12(2), 183–203. https://doi.org/10.1108/APJBA-05-2019-0109
Rideg, A., Szerb, L., & Varga, A. R. (2023). The role of intellectual capital on innovation: Evidence from Hungarian smes. 17(2), 1–19. https://doi.org/https://doi.org/10.18845/te.v17i2.6695
Rifqi, A., Rahmat, A., Nisa, K., & Nurcholifah, S. (2023). Exploring enterpreneurial orientation’s impact on innovation and academic performance in Malang city’s consumer cooperatives. Jurnal Ilmiah Manajemen Dan Bisnis, 8(2), 249–266. https://doi.org/https://doi.org/10.38043/jim b.v8i2.4637
Shaikh, M., Diwan, M., & Kumar, R. (2021). Role of hris and knowledge sharing behaviour towards innovation capability: Moderating effect of organizational citizenship behaviour. Journal of Entrepreneurship, Management, and Innovation, 3(2), 237–257. https://doi.org/10.52633/jemi.v3i2.75
Sousa, M., Font, E., Machado, I., Mendonça, J., Rodrigues, J., & Freitas, C. (2023). Assesing cultural intelligence and its antecedents in the Portuguese higher education context. Educ. Sci, 13, 546. https://doi.org/https://doi.org/10.3390/ educsci13060546 Academic
Stoermer, S., Davies, S., & Froese, F. J. (2021). The influence of expatriate cultural intelligence on organizational embeddedness and knowledge sharing : The moderating effects of host country context. Journal of International Business Studies, 52(3), 432–453. https://doi.org/10.1057/s41267-020-00349-3
Suripto, S., & Gunawan, J. (2019). Intellectual capital determinant towards company’s competitive advantage and performance and its impact on company’s values. In International Journal of Business, Economics and Law (Vol. 19, Issue 5). https://www.researchgate.net/publication/341611669_INTELLECTUAL_CAPITAL_DETERMINANT_TOWARDS_COMPANY’S_COMPETITIVE_ADVANTAGE_AND_PERFORMANCE_AND_ITS_IMPACT_ON_COMPANY’S_VALUES
Torrentira, M. C. (2020). Online data collection as adaptation in conducting quantitative and qualitative research during the covid-19 pandemic. European Journal of Education Studies, 7(11), 78–87. https://doi.org/10.46827/ejes.v7i11.3336
Van Greunen, C. (2021). The influence of cultural intelligence on the intra-team knowledge-sharing behaviour of knowledge-intensive teams. South African Journal of Information Management, 24(1), a1567. https://doi.org/https://doi. org/10.4102/sajim. v24i1.1567
Wibowo, Y. C., & Christiani, N. (2020). The Effect of affective organizational commitment towards innovation capability and its impact to job performance in family business. Jurnal Entrepreneur Dan Entrepreneurship, 9(2), 143–154. https://api.semanticscholar.org/CorpusID:234532541
Xu, J., & Liu, F. (2020). The impact of intellectual capital on firm performance: A modified and extended vaic model. Journal of Competitiveness, 12(1), 161–176. https://doi.org/https://doi.org/10.7441/joc.2020.01.10 THE
Yousaf, F., Masrek, M. N., & Bahry, F. D. S. (2022). Inter-relationship of cultural intelligence, emotional intelligence, knowledge conversion abilities, and innovation work behavior: A conceptual framework. Environment-Behaviour Proceeding Journal, 8(12), 147–153. https://doi.org/https://doi.org/10.21834/e-bpj.v8iSI12.5034 147
Yousaf, M. (2022). Intellectual capital and firm performance: Evidence from certified firms from the efqm excellence model. Total Quality Management & Business Excellence ISSN:, 33(13–14), 1472–1488. https://doi.org/10.1080/14783363.2021.1972800
Yuwono, W. (2021). Empirical analysis of intellectual capital , potential absorptive capacity , realized absorptive capacity and cultural intelligence on innovation. Management Science Letters, 11, 1399–1406. https://doi.org/10.5267/j.msl.2020.10.034
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Journal of Global Business and Management Review
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
