INTANGIBLE RESOURCES AND INSTITUTION PERFORMANCE: THE CONCERN OF INTELLECTUAL CAPITAL, EMPLOYEE PERFORMANCE, JOB SATISFACTION, AND ITS IMPACT ON ORGANIZATION PERFORMANCE

Didi Muwardi, Saide Saide, Richardus Eko Indrajit, Mohammad Iqbal, Endang Siti Astuti and Herzavina Herzavina
Additional contact information
Didi Muwardi: Department of Agribusiness, Universitas Riau, Indonesia
Saide Saide: #x2020;Department of Information System (Pro-Knowledge Research Group), Faculty of Science and Technology, State Islamic University of Sultan Syarif Kasim Riau, (UIN SUSKA Riau), Indonesia‡Department of Information Management, National Taiwan University of Science and Technology (NTUST), Taiwan
Richardus Eko Indrajit: #xA7;ABFI Institute of Perbanas, South Jakarta, Indonesia
Mohammad Iqbal: #xB6;Faculty of Administrative Science, Brawijaya University, Malang, Indonesia
Endang Siti Astuti: #xB6;Faculty of Administrative Science, Brawijaya University, Malang, Indonesia
Herzavina Herzavina: #x2020;Department of Information System (Pro-Knowledge Research Group), Faculty of Science and Technology, State Islamic University of Sultan Syarif Kasim Riau, (UIN SUSKA Riau), Indonesia‡Department of Information Management, National Taiwan University of Science and Technology (NTUST), Taiwan

International Journal of Innovation Management (ijim), 2020, vol. 24, issue 05, 1-21

Abstract: Purpose: The aim of this research paper is to examine the relationships between intangible assets, employee’s performance, and job satisfaction (JS) with structural model. The research explores both the practical and theoretical basis of these paradigms on organisation performance. This research also aims to identify whether a relation can be established between these aspects in the context of non-profit organisation performance in Indonesia. Design/methodology/approach: Reviewing the literature explores a theoretical existence of related context preceding the organisational performance. The authors used structural equation modelling to check the research prototype with a sample of 121 respondents. The respondents were heads of departments and general employees. In addition, SPSS was used to measure demographic, non-response bias, and generate descriptive statistics. Findings: Overall, the results demonstrate that organisation with a higher level of intellectual capital (IC), employee performance (EP), and job performance (JP) are important predictors of organisational performance in this sample. Similarly, JS and IC predicted EP. It is acknowledged that emotional intelligence such as satisfaction and dissatisfaction are important incentives to necessitate action tendencies. Research limitations/implications: This research is focused on organisations. Further research may extend the focus to different types of organisations and countries. Practical implications: The findings of this study may help institutions and HR departments to initiate new strategies such as integrating the traditional company performance measurement systems based on various indicators of this study. These factors succeed in providing an effective representation of a set of intangible assets that are developed by the company and that contribute to the improvement of company’s performance. Additionally, to maximise IC assets, the company can implement knowledge sharing practices among employees and experts as well. Original value/knowledge contribution: This research is useful for organisations and academics as a reference of the comparative and intersecting explanation of enhancing organisational performance. Moreover, various main concepts/theories are combined, namely, IC, JS, and employee’s performance to solve the obstacles of organisation performance.

Keywords: Intellectual capital; organisation performance; employee performance; job satisfaction; knowledge management; intangible asset (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S1363919621500092

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