Building Competitive Advantage Through Intellectual Capital And Organizational Agility: A Strategic Management Perspective On Indonesian Msmes

Abstract

This study aims to examine the influence of Intellectual Capital on Organizational Agility and Business Performance among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, as well as to investigate the mediating role of Organizational Agility. A quantitative approach was employed using a survey method involving 120 MSME participants selected through purposive sampling. Data were collected using a five-point Likert scale questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that Intellectual Capital has a positive and significant effect on both Organizational Agility and Business Performance. Furthermore, Organizational Agility exerts a positive influence on Business Performance and mediates the relationship between Intellectual Capital and business outcomes. These results provide empirical support for the Resource-Based View (RBV) and Dynamic Capability Theory, emphasizing that effective management of intellectual resources enhances an organization’s adaptive capacity and overall performance. Future research is recommended to incorporate digital transformation variables and Islamic values as moderating factors to strengthen the sustainable competitiveness of MSMEs.