Intangible Assets, Competitive Strategy And Financial Performance: Study On Rattan SMEs In Palu City Of Central Sulawesi (Indonesia)

Abstract

The purpose of this study is to test and analyzing the direct influence of intangible assets (human, organizational and relational capital) on competitive strategy and financial performance. The research approach used is positivist paradigm, based on quantitative research. The method used is explanatory survey method. The unit of analysis is the Rattan SMEs in Palu. Respondents were 38 owners or managers of Rattan SMEs . Primary data is collected through questionnaires and interviews. Data analysis method used was Partial Least Square (PLS). Results of this study indicate that human capital and relational capital does not directly affect financial performance, only indirectly affect organizational capital to improve financial performance. Intangible assets (human capital, organizational capital and relational capital) can directly increase the accuracy of competitive strategy selection and competitive strategy directly affect financial performance. It can be proved that integration model intangible assets increase financial performance maximally when mediated by a competitive strategy selection. Practical Implications of the study is to provide information to managers or owners of SMEs, namely government and policy makers, about the importance of intangible assets investment which are basis for determining competitive strategy to achieve more optimal rattan SMEs financial performance, controlling for external factors in future in order internal factors to be prepared for Rattan SMEs development