Abstract
Micro, Small and Medium Enterprises (MSMEs) are the most important pillars in the Indonesian economy and the high number of MSMEs in Indonesia cannot be separated from the existing problems. The problems faced by MSMEs cause the low competitiveness faced by MSMEs. The competitive advantage generated by MSMEs comes from superior resources which are reflected in the company's intellectual assets (intellectual capital). SMEs that can create a competitive advantage must have different resources from their competitors. One of the resources that can be highlighted is knowledge resources. The purpose of this study is to analyze confirmatory factors intellectual capital, knowledge management and competitive advantage. Analysis of the data used in the study using confirmatory factor analysis (CFA) techniques, the results of the study show that the indicator that is considered to have the largest or strongest contribution in forming the intellectual capital variable is human capital. The indicator that is considered to have the largest or strongest contribution in forming the Knowledge Management variable is the use of knowledge and the indicator that is considered to have the largest or strongest contribution in forming the variable of competitive advantage is not easy to replace.
Highlights
Micro, Small and Medium Enterprises (MSMEs) are the most important pillars in the Indonesian economy
Problems faced by MSMEs among others: The internal factors of batik SMEs such as lack of capital, limited human resources (HR), lack of mastery of science and technology, weak business networks and market penetration capabilities
Research conceptual framework Li, et al Based on the Resource-Based View (RBV) theory, the competitive advantage generated by MSMEs comes from superior resources which are reflected in the company's intellectual assets
Summary
Small and Medium Enterprises (MSMEs) are the most important pillars in the Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, in 2020, the number of MSMEs currently reaches 64.2 million with a contribution to GDP of 61.07% or worth 8,573.89 https://www.cribfb.com/journal/index.php/ijsmes International Journal of Small and Medium Enterprises. The contribution of MSMEs to the Indonesian economy includes the ability to absorb 97% of the total workforce and can collect up to 60.4% of the total investment. The high number of MSMEs in Indonesia is inseparable from the existing problems. Problems faced by MSMEs among others: The internal factors of batik SMEs such as lack of capital, limited human resources (HR), lack of mastery of science and technology, weak business networks and market penetration capabilities. External factors for SMEs such as: the business climate is not yet fully conducive, limited facilities and infrastructure, implications for regional autonomy, implications for free trade, the nature of products with short lifetimes, and limited market access
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