Determinants of Intellectual Capital: A Study of SME's Batik in Central Java

Abstract

The objective of this study is to explore the intellectual capital establishing factors especially for SME's. Intellectual capital constitutes intangible asset that will add the value of the company to achieve competitive excellence. Quantitative data analysis derives from the survey towards 87 middle range manages using jugdment sampling technique. The data was analysed using cronbach's alpha test to measure the reliability; exploratory factor analysis and confirmatory factor analysis with VARIMAX rotation were applied to measure factor analysis. Research location took place at two largest clusters of Batik Industry in Central Java that are Pekalongan and Laweyan-Surakarta city. The result shows that SME's batik in Central Java has an intangible asset. The factors of intellectual capital on batik SME's consists of the human capital, structural and relational capital.