Abstract

This study aims to examine the role of Intellectual Capital in moderating the effect of Competitive Advantage on MSME Performance. Resource-Based View Theory (Barney, 1991) and Porter's Strategic Generic Theory (1980) underlie this research. Primary data was collected using a survey method of 100 MSME managers throughout Bali. The data analysis method used is to use a structural model equation approach with the help of SmartPLS 3.0 software. The results showed that the cost leadership strategy, differentiation strategy and intellectual capital had a significant positive effect on the performance of MSMEs. However, intellectual capital is not able to moderate the effect of cost leadership strategy, differentiation strategy on MSME performance in Bali.

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