INTELLECTUAL CAPITAL AND INNOVATION IN BUSINESS ACTIVITIES FOR VALUE CREATION AND COMPETITIVENESS

Abstract

The Objective is to find out what makes SMEs able to continue to survive by utilizing their internal resources in the SMEs. The research method uses qualitative analysis, with the case study method, and with 120 informants who are small and medium business actors in the city of Medan, Indonesia, and is presented graphically and in tables, using NVIVO 12 plus. Data collection and analysis included participant observation, interviews, and interpretation data and videosThe findings show that business actors are always continuously trying to find creative ideas that are better known to them as Intellectual Capital, which are appropriate for their business. The creative ideas created will be related to the inherent characteristics of the business. Because the characteristics will distinguish one business from another, even though the business is similar. The process of finding business characteristics requires a long time, with three stages until the creation of innovation to create business value and competitive advantage.Limitations of Research, Data only used This study used 102 participants, and was considered by the researcher to be sufficient because he had obtained the same findings, it was suggested to further researchers to develop a research modelPractical implications. This business is very different from large businesses, especially in the form of its business, its activities, and the assets it owns. Intellectual Capital as knowledge possessed by SME’s their business activities. The effect is obvious by having innovation and performance, being key factors for the competitiveness of their businesses.
 Originality/ Value: Research has found that research and development activities in SME’s business actors can create assets that provide business value and business competitiveness.