KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Intellectual Capital Strategy in Increasing the Financial Performance and Empowerment of BUM Desa in Indonesia

Published date:Oct 08 2024

Journal Title: KnE Social Sciences

Issue title: 4th International Conference in Social Science (4th ICONISS): Governance and Poverty Alleviation

Pages:302–311

DOI: 10.18502/kss.v9i27.17114

Authors:

Ahmad RifaiDepartment of Agribusiness, Faculty of Agriculture, University of Riau, Pekanbaru, Riau

Didi MuwardiDepartment of Agribusiness, Faculty of Agriculture, University of Riau, Pekanbaru, Riau

Kausar ‎ Department of Agribusiness, Faculty of Agriculture, University of Riau, Pekanbaru, Riau

Deby Kurniadeby.kurnia@lecturer.unri.ac.idDepartment of Agribusiness, Faculty of Agriculture, University of Riau, Pekanbaru, Riau

Abstract:

Intellectual capital is an intangible asset consisting of knowledge and networks, which are believed to increase economic added value in the business. In the context of the enactment of Undang-Undang No. 6 tahun 2014 concerning villages, BUM Desa has an important role as an economic institution at the village level which is expected to become one of the main pillars of economic development. This study aims to identify and measure the extent to which intellectual capital is present in BUM Desa, and also to analyze the impact of the relationship between this intellectual capital and the financial performance of BUM Desa. The study was carried out by BUM Desa in Tambang District, Riau Province, as a case example. Intellectual capital measurement was carried out through a Likert scale analysis, while financial performance was measured through the ability of BUM Desa to generate profits and control costs. A descriptive approach was used to describe the relationship between intellectual capital and financial performance. The results of the study show that the intellectual capital of BUM Desa is formed from three main dimensions – structural capital, relational capital, and human capital. BUM Desa is able to generate profits from assets that are more efficient than equity funding and can reduce costs to maximize profits.

Keywords: human capital, intellectual capital, financial performance

References:

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[2] Quintero-Quintero W, Blanco-Ariza AB, Garzón-Castrillón MA. Intellectual capital: A review and bibliometric analysis. Publications MDPI. 2021;9(4):46.

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[6] Muwardi D, Saide S, Indrajit RE, Iqbal M, Astuti ES, Herzavina H. Intangible Resources and Institution Performance : The Concern Of Intellectual Capital, Employee Performance, Job Satisfaction, and Its Impact On Organization Performance. Int J Innov Manage. 2020;2150009(5):1–21.

[7] Ahmed A, Khurshid MK, Riaz Z, Zulfiqar M, Yousaf MU. Intellectual capital and firm value: the role of firm performance. Journal of Management Info. 2022;9(3):402–17.

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