Purpose: This study investigates the influence of human capital, structural capital, and knowledge management on competitive advantage within the North Sulawesi Provincial Government, Indonesia. It aims to understand whether knowledge management mediates the relationship between human capital, structural capital, and competitive advantage in the context of public sector organizations. Theoretical Reference: The research is grounded in the Knowledge-Based View (KBV) theory, which postulates that knowledge is a critical resource for competitive advantage. It also explores the role of intellectual capital (human and structural capital) as sources of knowledge and their interplay with knowledge management. Method: A quantitative approach was utilized, involving 147 public officers from seven departments under the North Sulawesi Provincial Government. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3.0 software. Results and Conclusion: The findings indicate that: Human capital positively impacts competitive advantage. Structural capital does not directly influence competitive advantage but has a significant effect through the mediation of knowledge management. Knowledge management positively affects competitive advantage and mediates the relationship between structural capital and competitive advantage. However, it does not mediate the relationship between human capital and competitive advantage.These results highlight the critical role of knowledge management in leveraging structural capital for competitive advantage in public sector organizations. Implications of Research: Theoretical Implications: The study contributes to the literature on intellectual capital and competitive advantage in public sector contexts, providing novel insights into the mediating role of knowledge management. Practical Implications: Policymakers should focus on enhancing human capital, improving structural capital, and fostering effective knowledge management processes to boost the competitive advantage of public sector organizations. Originality/Value: This research addresses a gap in understanding competitive advantage within Indonesian public institutions by examining intangible resources and knowledge management. It provides a unique perspective on public sector competitiveness, particularly in the context of regional government institutions in North Sulawesi.
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