Analysis of Influence Organizational Culture toward Intellectual Capital

Abstract

Abstract-Organizational culture commonly referred as work culture and is important in the SME (small and medium enterprises). If the organizational culture that is used in the SME is right and good then SME will go well. One of the assets owned by an SME is intellectual capital and it is an intangible asset that also plays an important role in an SME. This study wants to analyze the influence of organizational culture on the intellectual capital.This study conducted by case study on Bina Karya SME that is located in Yogyakarta, Central Java, which is engaged in the wood handicrafts and souvenirs. In this study, the structural models developed from the results of the elaboration using the related theories are used. This structural model then produced a questionnaire that is used as a measuring tool in the study. Organizational culture has seven variables and intellectual capital has three variables in the research model. Data processing was performed by using software Smart PLS 2.The results of this research show that organizational culture has an influence on the intellectual capital which means indirectly if the applied organizational culture is good and supportive in doing the work then it will increase the intellectual capital. From seven variables of organizational culture there are four variables influencing that is innovation and risk-taking, results orientation, team orientation, and aggressiveness while for all three variables of intellectual capital have effect that is human capital, structural capital and relational capital.Index Terms-Organizational culture, intellectual capital, small and medium enterprises.

Knowledge Sharing, Organizational Culture, Intellectual Capital, and Organizational Performance

“…In addition, the established organizational culture could support the employees as well in producing an optimal intellectual performance and building a harmonious relationship with the company's business partners. This research finding was consistent with the research conducted by Rumanti et al (2015) who found that organizational culture had a positive significant influence on intellectual capital and could drive the company's intellectual capital better.…”

“…When an organization member knows a positive organizational culture, then the work environment is more likely to be more fun and hence boosts the spirit to work (Sadri et al, 2001). One of the previous studies on organizational culture is conducted by Rumanti, Hidayat, and Yordy (2015) who investigate the influence of organizational culture on intellectual capital and the finding is that good organizational culture and support at work will improve the intellectual capital which consists of human capital, structural capital, and relational capital. Meanwhile, the research conducted by Astuti (2011) shows that organizational culture does not have a significant influence on human capital, customer capital, and structural capital.…”