Implementation of Business Sustainability, Capital Strengthening for MSMEs within Regional Development

Albert Yansen; Dokman Marulitua Situmorang

doi:10.59653/jbmed.v4i02.2374

Authors

Albert Yansen Universitas Mohammad Husni Thamrin, Indonesia https://orcid.org/0000-0002-4078-5442
Dokman Marulitua Situmorang Institut Teknologi dan Bisnis Kristen Bukit Pengharapan, Indonesia

DOI:

https://doi.org/10.59653/jbmed.v4i02.2374

Keywords:

Selected:Human Capital, Innovation Behaviour, Business Sustainability, Relational Capital, Structure Capital

Abstract

This study aims to analyze the impact of intellectual capital dimensions—specifically human capital, structural capital, and relational capital—and innovation behavior on the business sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Batam City. The research employs a quantitative explanatory approach, using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to test the structural relationships among variables. Data were collected from 150 MSME owners through a structured questionnaire administered via purposive sampling. The findings reveal that human capital, relational capital, and structural capital significantly and positively influence business sustainability. Furthermore, innovative behavior is identified as a critical driver that strengthens long-term business resilience in a competitive regional development context. This study contributes to the literature on strategic management by providing an integrated model of intellectual capital and innovation for small businesses. In practice, the results offer a strategic framework for policymakers and MSME practitioners to prioritize intangible asset management as a core approach to regional economic sustainability.

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