Influence of Intellectual Capital on Operational Performance through Innovation Capability in Indonesia’s Defence Industry

Abstract

<p>This research examines the impact of intellectual capital on operational performance through innovation capabilities in the defence industry in Indonesia, PT. Pindad (Persero). Network processes within the company are assessed by internal performance, which is described by the company's operational performance. 142 employees who work in the production function were sampled in this research using the probability-sampling method with a stratified random sampling type. SEM-PLS was used as a data analysis model. Human capital, structural capital and social capital are three components used in the research. This study provides empirical evidence that these three components influence operational performance. In addition, it is known that human capital, structural capital, and social capital affect innovation capability, and the company's operational performance is influenced by innovation capability. In an indirect relationship, the results interpret that the influence of human capital, structural capital and social capital on the company's operational performance can be through innovation capability. This research provides input to the defence industry to improve performance by increasing the intellectual capital owned by the company without ignoring the importance of innovation capability.</p>

Role of human resource practices, leadership and intellectual capital in enhancing organisational performance: the mediating effect of organisational agility

“…Organisations can ensure that accurate and reliable information is utilised in the decision-making process by establishing validated routines and protocols for knowledge application. In this context, the KA process not only serves as a means of utilising the embedded information acquired through IC (Chatterjee et al, 2023), but also functions as a mechanism for filtering and updating this information (Citrasari et al, 2022). Consequently, effective knowledge application is an integral component of OA.…”