Intellectual Capital and Long Term Competitive Advantage through Innovation Capability

Sugianto

doi:10.69725/jebi.v2i4.322

Authors

Sugianto Department of Economics, Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Yogyakarta, Indonesia

DOI:

https://doi.org/10.69725/jebi.v2i4.322

Keywords:

Intellectual capital innovation capability, Long-term competitive advantage, Dynamic capability Strategic management

Abstract

Purpose: The focus of this study is to investigate how intellectual capital can generate sustained competitive advantage through innovation capability.

Method: The variance-based structural equation modeling (VB-SEM) technique is utilized in this study to examine a mediation model guided by strategic management theory.

Findings: We find that intellectual capital is an important strategic resource that positively influences firms’ capacity to create innovation capability and long-term competitive advantage. Innovation capability is a dynamic force to turn knowledge-based resources to competitive outcomes that last longer. The findings also indicate that the direct effect of intellectual capital to long-term competitive advantage is enhanced by firms' ability to utilize innovation-related capabilities, which stresses the importance of developing capabilities rather than merely possessing resources. In sum, the model offers strong empirical justification for the theoretical unification of resource-based and dynamic capability views when accounting for sustained competitive advantage.

Novelty: This study provides a unique contribution by casting innovation capability as one composite mediator, which is an explicit link between intellectual capital and lasting competitive advantage consequently adding to existing research that has predominantly concentrated on short-term performance or fragmented measures of innovation.

Implications: Findings The research offers strategic implications for managers and policy makers, because it demonstrates the significance of setting IC management in line with innovation capability development toward sustainability competitiveness on a knowledge-based industry.

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Author Biography

Sugianto, Department of Economics, Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Yogyakarta, Indonesia

Sugianto, S.E., M.E., AWP-S is a lecturer in the Department of Economics, Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia. His academic expertise focuses on intellectual capital, strategic management, and long-term competitive advantage within organizational and economic contexts. He has actively contributed to research on knowledge-based resources, organizational performance, and sustainable competitiveness, with particular attention to emerging and developing economies. His scholarly work emphasizes the strategic role of intangible assets in enhancing firm resilience, value creation, and long-term competitive positioning.

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