Role of Intellectual Capital in Mediating the Impact of Knowledge Management and Innovation in the Halal Batik Industry of Yogyakarta

Abstract

The objective of this study is to investigate the role of intellectual capital in mediating the impact of knowledge management and motivation on halal small and medium-sized enterprises (SMEs) in the batik industry in Yogyakarta. Research on the mediating role of intellectual capital is still relatively novel in Indonesia. The study of the batik industry is particularly compelling, given that batik is an intangible asset recognized as UNESCO's cultural heritage, yet there is a noticeable decline in export value year by year. By focusing on halal batik SMEs, this study aims to explore how halal certification can enhance the market appeal and export potential of these businesses. The initial step of this research involves collecting data related to the research variables by distributing questionnaires to batik entrepreneurs in Yogyakarta. Subsequently, tests are conducted using PLS to analyze the results, examining the role of intellectual capital in mediating the impact of knowledge management and motivation on halal SMEs in the batik industry in Yogyakarta. The findings aim to provide insights into how intellectual capital can influence the sustainability and growth of batik enterprises, potentially offering strategies to counteract the declining export values and enhance the overall performance of these culturally significant businesses