The Development of Halal-Tourism in Tourism MSMEs in Western Regencies of Central Java Province: The Role of Intellectual and Spiritual Capital

Abstract

Purpose: MSMEs play a critical role in the growth of the halal tourism sector. The goal of this study is to examine how MSME organizational performance is affected by the factors that make up their intellectual capital, which includes their human, relational, and structural capital as well as their spiritual capital. Methodology/approach: This research used a sample of MSME owners and operators in the western region of the province of Central Java. Structural equation modeling was used in this study's investigation. Findings: Relational capital, structural capital, and spiritual capital all have significant positive effects on MSMEs' organizational performance, according to the findings of the data analysis and explanation that have been provided. However, this research was unable to provide evidence to substantiate the relationship between human capital and MSME performance. Practical implications: According to the study's findings, managers and owners of MSMEs need to have strong intellectual and spiritual capital if they want to increase the performance of their companies. MSME should thus focus on managing such capital. Originality/value: In addition to prove the role of Intellectual capital in MSME performance, this study also proves the importance of spiritual capital for halal-tourism business.