Association Between Intellectual Capital and Competitive Advantage: A Case Study on the Hotel Industry in Bali Province, Indonesia

Abstract

Purpose: This study aims to examine the association between intellectual capital and competitive advantage in the hotel industry in Bali Province, Indonesia. The interrelationship between components of intellectual capital –human capital, relational capital, structural capital – were tested in this study, and testing was also carried out for the association of intellectual capital – represented by structural capital – with competitive advantage.
 Methodology: Data was collected using a self-administered questionnaire. A total of 172 questionnaires were sent to general managers of three-, four- and five-star hotels in Bali Province. A total of 109 questionnaires were returned and could be analysed (a 63% response rate). The analysis was performed using covariance-based structural equation modeling with AMOS 21.0 software.
 Main Findings: The findings show that between the components of intellectual capital there is a positive and significant association: human capital with relational capital, human capital with structural capital and relational capital with structural capital. The findings also show that structural capital has a significant positive association with a competitive advantage.
 Implications: Mobilising and utilising human capital as much as possible can create and enhance relational capital and structural capital. Willingness to realise, utilise, compile and develop organizational knowledge enables long-term competitive advantages to be achieved.
 Novelty: This study examines the association of intellectual capital – facilitated by structural capital – and competitive advantage, which researchers have not done before in the hotel industry.

Entelektüel Sermaye ile Rekabet Avantajı Arasındaki İlişki: Bir Meta-Analiz Çalışması

“…In line with the explanations made, it is possible to say that the research hypothesis of "There is a positive, strong and significant relationship between intellectual capital and competitive advantage" has been confirmed. This positive and significant relationship between IC and CA supports the results of many studies such as Dahash and Al-Dirawi (2018), Taie (2014), Kamukama and Sulait (2017), Astuti et al (2019) and Assaf (2020). However, this significant relationship contradicts the research results of Elda et al (2021) and Crisnandani et al (2021).…”

“…In addition, as a result of the study, it has been observed that intellectual capital has a positive and significant effect on competitive advantage. Similarly, Astuti et al (2019) conducted a study on 109 businesses in hotel industry in Bali, and it was found that there were positive and significant relationships between IC components and CA. In addition, it has been observed that structural capital has a statistically significant and positive effect on competitive advantage.…”

“…In the current economy, intellectual assets are an important determinant of competitive advantage in a company. Intellectual assets also lay the foundations for future competitiveness and play an important role in maintaining competitive advantage (Astuti et al, 2019). Barney (1991) stated that organizations that effectively use human resources and talents that are valuable to companies were more likely to achieve a competitive position (Obeidat et al, 2021).…”

“…In the current economy, intellectual assets are an important determinant of a company's competitive advantage. It also lays the foundations for future competitiveness and plays an important role in maintaining competitive advantage (Astuti et al, 2019). Intellectual capital has recently become significant for companies to gain competitive advantage in the global economy.…”

The Role of Intellectual Capital, Organizational Learning and Digital Transformation on the Performance of SMEs in Denpasar, Bali-Indonesia

“…Intellectual capital is an intangible asset/organizational capital that is a collection of people, change processes, and consumers that provide competitive value for the company. [5]. Intellectual capital in the MSME sector is the main weapon in efforts to improve organizational performance.…”