Saudi Journal of Humanities and Social Sciences (SJHSS)
Volume-3 | Issue-05 | 642-650
Original Research Article
The Effect of Human Capital, Structural Capital and Relation Capital on Company Performance
Novawiguna Kemalasari, Ahmad Badawi Saluy
Published : May 30, 2018
Abstract
Recent economic developments are more dependent on the value created by
intangible assets than tangible company's assets. Intangible assets in question are
intellectual capital that is recognized as the basis of individual, organizational, and
general competition in the 21st century. The rapid global economy and technological
innovations that have led to tough competition in the business world make IC creation,
management, measurement, and evaluation an important indicator in improving
company performance that will affect the value of the company in the future. This study
aims to determine the strong influence of intellectual capital on company performance,
and how the influence of human capital on structural capital and relation capital by
distributing questionnaires to 100 employees of banking companies in Jakarta for
middle and upper positions. Approaching method used is Partial Least Square (PLS).
Based on research that has been conducted, it can be concluded that human capital has
influence on relation capital and structural capital. Similarly, human capital and relation
capital has a significant influence on company performance, but structural capital
doesn’t have significant effect on company performance.