The Role of Intellectual Capital in Improving Micro, Small, And Medium-Scale Business Performance in The Hostel And Culinary Sector in Pekanbaru, Indonesia

The increased level of competitiveness and Micro, Small, and Medium-Scale
Business (MSME) performance in the hostel and culinary sector in Indonesia,
especially in Pekanbaru, need more concerns since MSME is an important business
sector to encourage the economy of a country and reduce the unemployment rate by
creating job opportunities. In the technology era, the development of the intellectual
capital concept suitable for MSME is needed due to the current competitive and
disruptive business area. This study was conducted in 378 MSMEs in the hostel and
culinary sector in Pekanbaru city. The data analysis technique in this study was
Structural Equation Modeling (SEM) assisted by AMOS. The result of this study
showed that human capital influenced the financial performance and non-financial
performance of MSME in the hostel and culinary sector in Pekanbaru City, while
technology capital did not influence the non-financial performance of MSME in the
hostel and culinary sector in Pekanbaru city. Customer capital influenced the
financial and non-financial performances of MSME in the hostel and culinary sector
in Pekanbaru city. Social capital influenced the financial and non-financial
performances of MSME in the hostel and culinary sector in Pekanbaru city. Nonfinancial
performance influenced the financial performance of MSME in the hostel
and culinary sector in Pekanbaru city.