Dokman Marulitua Situmorang
Institut Teknologi dan Bisnis Kristen Bukit Pengharapan, Indonesia

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Implementation of Business Sustainability, Capital Strengthening for MSMEs within Regional Development Albert Yansen; Dokman Marulitua Situmorang
Journal of Business Management and Economic Development Том 4 № 02 (2026): Journal of Business Management and Economic Development
Publisher : PT. Riset Press International

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59653/jbmed.v4i02.2374

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.