THE INFLUENCE OF HUMAN CAPITAL, STRUCTURAL CAPITAL …

Economics and Accounting JournalVol.1, No.1, January 2018

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THE INFLUENCE OF HUMAN CAPITAL, STRUCTURALCAPITAL AND RELATIONAL CAPITAL TO THE

PERFORMANCE OF COOPERATION WITHCOMPETITIVE ADVANTAGE AS INTERVENING

VARIABLE OF COOPERATION IN SOUTH TANGERANG

Khoirunnisa AzzahraEsa Unggul University

[email protected]

Abstract

This Research is about to test the influence of human capital, structural capital andrelational capital to the performance of the Koperasi with competitive advantage asintervening variable by testing the direct influence of human capital, structural capitaland relational capital performance of the Koperasi and the indirect influence withcompetitive advantage as intervening variable. The instability of growth of the Koperasiin Indonesia is caused by the human resource quality which has not developed optimally.This caused had become the motivation of the research in doing this research.

Key Words: intellectual capital, human capital, structural capital, relational capital, theperformance the Koperasi and competitive advantage.

1. INTRODUCTION

In the framework of the economicdevelopment of the Indonesian nation,the cooperation is able to unite, directand develop the creative power,creativity and effort power of the peopleto jointly participate in the Indonesianeconomy, the cooperation has the statusand function together with state- privatesector to undertake various efforts toachieve prosperity for all Indonesianpeople. According to Law No.25 / 1992the cooperative is a business entityconsisting of persons or legal entitiesbased on the principle of kinship andeconomic democracy.

The growth of cooperation in SouthTangerang in five years is always abovethe provincial and national growth ofmore than 8% per year. As the numberof cooperation very much is certainly itscontribution is expected to encourage

the welfare of members and also theperpetrators of Small and MediumEnterprises. However, in fact the idealrole of cooperation in South Tangerangis not yet fully realized, manycooperatives are still struggling ininternal management problems. Anumber of problems are easilyencountered such as: management ofmanagement that is still very traditional,bookkeeping that has not beenstandardized, business is not qualified,member participation is so low, it is aquite dilemmatic phenomenon when thecooperative with various advantages ithas not been able to play an optimal rolein competitiveness and contribute toimproving development growth in SouthTangerang.

In the resource base theory explainedthat the company's competitiveadvantage will be achieved dependingon how a company can utilize and


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manage resources owned in accordancewith the ability of the company. Basedon Resources Based Theory, thatintellectual capital meets the criteria as aunique resource that can createcompetitive advantage of the companyso as to create more value (value added)for the company. From the resource basetheory explanation, intellectual capital isa resource owned by the company,which can give a competitive advantageto the company and used to compile andimplement the company strategy, thusimproving the company performancebecome better. Intellectual capitalconsisting of human capital, relationalcapital, and structural capital is one ofthe approaches used in the assessmentand measurement of intangible assets.(Harrison and Sullivan, 2000).

In Indonesia, Intellectual Capitalphenomenon began to grow especiallyafter the emergence of Statement ofFinancial Accounting Standards (PSAK)No. 19 (revised 2000) on intangibleassets. According to PSAK No. 19,intangible assets are non-monetaryassets that are identifiable and have nophysical form and are held for use in theproduction or delivery of goods orservices, leased to others, or foradministrative purposes (IndonesianInstitute of Accountants, 2007).

Intellectual capital is believed to playan important role in improving corporatevalue and financial performance.Companies that are able to utilize theirintellectual capital efficiently, then itsmarket value will increase. Appuhami(2007) states that the greater the value ofintellectual capital (IC) the moreefficient use of company capital, so as tocreate value added for the company. Inaddition, if intellectual capital is ameasurable resource for increasingcompetitive advantages, then intellectualcapital will contribute to theperformance of the company(Abdolmohammadi in Sunarsih and NiPutu, 2012). Intellectual capital

optimized utilization can contribute tothe emergence of creative ideas andsolutif for the needs of companies to becompetitive in the market.

Most of the previous studies haveexamined the effect of all components ofhuman capital, structural capital, andrelational capital together onperformance. This becomes one of thedriving factors for conducting researchby examining the influence of eachcomponent of human capital, structuralcapital and relational capital, affectingeach other and testing each of eachvariable on performance.

The formulation of the problemproposed in this research is whetherhuman capital, Structural capital andrelational capital, directly and partiallyinfluence on cooperative performanceand indirect and partial influence oncooperative performance withcompetitive advantage as interveningvariable. The purpose of this research isto apply the influence of human capital,Structural capital and relational capitalpartially either directly or indirectlythrough competitive advantage asintervening variable.

2. LITERATURE REVIEW

2.1. Resource- Based TheoryPenrose (1959) states that the

company's resources are heterogeneous,non homogeneous, productive servicesthat give a unique character to eachcompany.

2.2. Human Capital TheoryBecker (1964) argues that

investment in training and to improvehuman capital is important as aninvestment of other forms of capital.Skill, experience, and knowledge haveeconomic value for the organizationbecause it is possible to be productiveand adaptable. Skill, knowledge andhealth are not only beneficial to an


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individual, but will also increaseresources for entrepreneurs and a nationas well as potential productivity. Likeother assets in general, human capitalhas value in the market, but the potentialvalue of human capital in full can berealized only with the cooperation ofeach individual. Therefore, there are anumber of costs to generate employeeproductive behavior including thoserelated to motivation, supervision andretention (human capital investments aremade to anticipate future returns)(Flamholtz & lacey, 1981).

2.3. IntangibleIn general Intangible is divided into

intangible proferty or intangibleresources (Myers, 1996). Intangibleproperty consists of legally protectedassets (patents, trademarks, trade secrets,computer software), while intangibleresources tend to maintain employmentprocesses, employee knowledge andresearch and development activities (R& D).

2.4. Intellectual CapitalSome researchers express the

definition of intellectual capital asfollows:2.4.1. Intellectual capital is elusive, but

once discovered and exploited

will give the organization a newsource base to compete and win(Bontis 1996)

2.4.2. Intellectual capital is a term givento combine the intangible assetsof the market, the intellectualproperty, the infrastructure andthe human center that a companycan function (Brooking 1996).

2.4.3. Intellectual capital is theintellectual material (knowledge,information, intellectualexperience, experience) that canbe used to create wealth. This ispowerful (Stewart, 1997).

2.4.4. Intellectual capital is the pursuitof effective use of knowledge(finished product) as opposed toinformation (raw material)(Bontis, 1998).

2.4.5. Intellectual capital is consideredan element of the market value ofthe firm and also the marketpremium (Olve, Roy & Wenter,1999)

Intellectual capital can be definedas shares or capital based on knowledgeowned by the company. It is also the endresult of the transformation process ofknowledge or knowledge itself that ismade in the form of an intellectualproperty or company's assets.

Table 1 Intellectual Capital Classification

Human Capital Relational (Costumer)Capital

Organisational(Structural) Capital

Know –how Education Vocational

qualification Job is connected to

knowledge Psychometric

Measurement Job is connected to

competence Entrepreneurial

Spirit, innovativespirit, proactive andreactive ability, the

Brand Costumer Costumer

Loyalty Company Name Backlog orders Distribution

Network Business

Collaboration License Deals Supported MOU Franchise Deals

Intellectual property Rights Copyrights Design rights Trade secrets Trade secrets Trade marks Service marks

Infrastructure assets Management

Philosophy Corporate Culture


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ability to change. Informationsystems

Network sistems Financial

Relationship

Source : IFAC (1998).

2.5. Human CapitalAccording to Schermerhon (2005),

human capital can be interpreted as theeconomic value of human resourcesrelated to ability, knowledge, ideas,innovation, energy and commitment.human capital is a combination ofknowledge, skills, innovation and theability of a person to carry out his dutiesso as to create a value to achieve thegoal.

2.6. Structural CapitalStructural / Organizational capital

includes every element of anorganizational structure that facilitatesan employee's ability to create wealthfor the company and its stakeholders.The effectiveness of this process is veryimportant because it involves internalprocedures that allow for knowledgeintegration and sharing of capabilities,resulting in wealth creation for theorganization. In addition, knowledgemanagement processes contribute to theeffectiveness of customer generations(Zablah, Bellenger and Johnston 2004).

2.7. Relational CapitalRelational capital includes

corporate image, customer loyalty,customer satisfaction, and interactionswith suppliers by employees, negotiationcapacity, distribution channels, supplierchannels, license agreements, andfranchise agreements (Starovic & Marr,2003). Relational capital is theknowledge collected by the firm as aresult of the exchange with third partiesand the potential for future knowledgeaccumulation as a result of such

exchanges. The value for the company isdirectly related to the length of therelationship with third parties (Ordonezde Pablos, 2004).

2.8. Competitive AdvantageAccording to Bataineh et.al.

(2011) competitive advantage in a neweconomy has shifted from material andfinancial assets that are tangible assetsto intangible and non-financial assets.Traditional factors of production, suchas natural resources, labor and capital,human resources have minimized thesignificance. At the same time theimportance of intangible inputs, such asinformation, intellectual capital andknowledge, increases. The real valuelies in the knowledge and skills of thepeople who make the product, and themarketing power of the company to sellthe product. The real wealth of theorganization should be sought onpeople, knowledge and skills, internalprocesses and corporate reputation.

2.9. Cooperation PerformanceAccording to James Horne (2005),

performance is the result of achievementwithin a certain period. In order toachieve good performance it isnecessary to make positive efforts toachieve it. Similarly, in a cooperative, ifthe cooperative doing business activitieswell then it will get a good cooperativeperformance.

2.10. Research ModelThe Research Model of this

research is below :


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Figure 1. Research Model

2.11. HypothesisH1 = there is a positive influence of

Human Capital on CompetitiveAdvantage

H2 = Structural Capital positiveinfluence to CompetitiveAdvantage

H3 = there is a positive influence ofRelational Capital on CompetitiveAdvantage

H4 = there is a positive influence ofHuman Capital on CooperativePerformance

H5 = Structural Capital positiveinfluence on cooperativeperformance

H6 = there is a positive influence ofRelat ional Capital onPerformance of CooperativePerformance

H7 = there is a positive influenceCompetitive Advantage onPerformance of CooperativePerformance

3. RESEARCH METHOD

3.1. Types And Research DesignThis study is an empirical study

conducted to prove the existence of

causality relationship between HumanCapital, Structural Capital andRelational Capital with companyperformance mediated by CompetitiveAdvantage as intervening variable.

3.2. Unit of Data AnalysisUnit of data analysis in this

research is employees at cooperatives -cooperatives registered in SouthTangerang Cooperative Office.

3.3. PopulationThe population in this research is

all employees of cooperatives in SouthTangerang. To determine the sample,employee is employed in cooperativesregistered in South TangerangCooperative Office as samplingframework. Sampling pattern in thisresearch was done randomly (random),while sampling used in this research isunrestricted random sample with samplerandom sample.

3.4. Types And Data CollectionMethods

The type of research data is subjectdata (self-report data) with the responsegiven written and self-reported by therespondent. Sources of research data is

Human Capital(X1)

(X1)

StructuralCapital (X2)

(x2)

Relational

Capital (X3)

CoopeartionPerfromanc

e (Y)

CompetitiveAdvantage(Z)

H4

H5

H6

H2

H1

H3

H7


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the primary data (primary data) obtaineddirectly from the original source by notthrough the medium prantara.

Data collection using surveymethod with data collection techniqueusing questioner, that is by sendingdirectly and indirectly through (mailsurvey).

3.5. Operational Definition ofVariablesVariable Human Capital, Structural

Capital, Relational Capital, CompetitiveAdvantage and cooperative performancedeveloped by several researchers,namely Bontis, Astuti, Hariyanto andHermawan, are filled to the extent towhich respondents agree with five Likertscales (1 = strongly disagree up to 5strongly agree ).

3.6. Analysis Technique

Hypothesis testing is done by usingStructural Equation Modeling (SEM)with AMOS 23 program.

4. RESULT AND DISCUSSION

4.1. Descriptive Statisticsthe 350 scattered, which returned

and deserves to be analyzed 183questionnaires with a rate response rateof 52%. Respondents who participatedin the study were male majority63.38%, aged over 40 years 48.63%with a working period of less than 5years 73.77%, and the education levelof the majority of senior high schoolwas 45.36%.

4.2. Assumption Evaluation of SEMFull Analysis of the StructuralEquation Modelling (SEM)

Full latent model variableestimation results are shown in Figure

Source : Research Data though, 2016

Figure 2: structural equation model of causality connection


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Evaluation of the goodness-of-fitcriteria is shown in the following table

which shows a good value of conformityto accept the proposed model.

Table 2. Evaluasi Overall Model Fit Casuality Connection

Source : Primary Data Though, 2016

The test results of the StructuralEquation Model in Figures 2 and 2Table show good suitability values inorder to accept the proposed researchmodel. Thus the measurement modelfor causality relationship The influenceof Human Capital, Structural Capital

and Relational Capital on CooperativePerformance with Competitiveadvantage variable as interveningvariable can be accepted well and canbe used to confirm the result betweentheoretical conformity and empiricaltest.

Table 3. Results of Analysis and Interpretation of Estimated Parameters for Structural

Equation Modeling Model

source : primary datathough, 2016

Estimate S.E. C.R. P Decision

CA <--- HC 0.401 0.19 2.116 0.034Positive and

Significant

CA <--- SC 0.04 0.227 0.178 0.858 insignificant

CA <--- RC 0.422 0.165 2.561 0.010Positive and

Significant

KK <--- HC -0.35 0.187 -1.871 0.061 insignificant

KK <--- SC 1.041 0.223 4.673 ***Positive and

Significant

KK <--- RC -0.201 0.157 -1.278 0.201 insignificant

KK <--- CA 0.429 0.085 5.072 ***Positive and

Significant


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4.3. Hypothesis Testing 1: There is apositive influence of HumanCapital on CompetitiveAdvantageTable 3 shows that human capital is

positively and significantly correlatedwith competitive advantage. Thus, thehuman capital that has a significanteffect on competitive advantage(competitive advantage) is the mostimportant indicator in human capital istraining (training) for each employeeturnover in south tangerang cooperative.

4.4. Hypothesis Testing 2 : There isa positive influence ofStructural Capital onCompetitive Advantage

Table 3 shows that structural capitalpositively and not significantly influencewith competitive advantage thus, thestatistical test results fail to accepthypothesis 2 which states that structuralcapital has positive and significantimpact on competitive advantage.problems faced by cooperatives inTangerang Selatan Structural capitalrelated is not optimal in the managementutility (usefulness) of the informationsystem to be able to accelerate theincreasing value of competitiveadvantage (competitiveness) facingcompetition in the market.

4.5. Hypothesis Testing 3 : There isa positive influence ofRelational Capital onCompetitive Advantage Table 3 shows that relational capital positively and significantly influence with competitive advantage. Thus, t

This can be proven in theindicators in this study that is animportant point of Relational capitalthat can increase the competitiveadvantage of cooperative ie theemployees of cooperatives in SouthTangerang have good relationship withthe customers.

4.6. Hypothesis Testing 4 : There isa positive influence of HumanCapital on performance ofCooperation

Table 3 shows that human capitalhas positive and insignificant effect tocompany performance. Thus, statistictest result fails to accept hypothesis 4which states that human capital haspositive and significant effect tocompany performance. This is because,cooperative employees tend to hesitatewith the level of self-driven it has (theability to develop all the potential initself to achieve corporate goals) this canresult in less optimal employees inachieving performance targets set by theleadership of the cooperative

4.7. Hypothesis Testing 5 : There is apositive influence of StructuralCapital on performance ofCooperationTable 3 shows that Structural

capital positively and significantlyinfluence with competitive advantage.Thus, the statistical test results fail toreject hypothesis 1 which states thatstructural capital is positively andsignificantly correlated with firmperformance. This is because employeesof the cooperatives in South Tangerangstrongly believe that by working as ateam (team work) with a goodcomplementary skills and work withorganizational structure that can be wellidentified by all elements within thecooperative, the cooperative -cooperatives in South Tangerang canachieve company performance inaccordance with the expected joint. Inaddition, with the data system owned bycooperatives in South Tangerang,greatly facilitate employees within thecooperative to obtain relevantinformation they need to work properly.


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4.8. Hypothesis Testing 6 : There is apositive influence of StructuralCapital on performance ofCooperation

Table 3 shows that relational capitalhas negative and insignificant effect tocompany performance. Thus, statistictest result fails to accept hypothesis 4which states that relational capital haspositive and significant effect tocompany performance. This is becausethe customer has not been optimal inhelping the cooperative to improve theproduct or service. And not yet optimalnetwork system is good betweencooperatives with customers. and theabsence of customer relationshipmanagement system.

4.9. Hypothesis Testing 7 : There isa positive influence ofcompetitive advantage onperformance of Cooperation

Table 3 shows that competitiveadvantage correlates positively andsignificantly with firm performance.This is because some aspects ofcompetitive advantage which arebelieved by the cooperative employeesare strong enough to encourage theimprovement of the performance of thegrowing market conditions of thecompany, cooperative cooperation withthe customers is quite promising, thecooperative can quite well reach themarket, and also most of the cooperativecustomers see the potential for goodwillin cooperatives continues to increase

5. CONCLUSION

Result of hypothesis test in researchof influence of Human Capital,Relational Capital and Structural Capitalto Cooperative Performance withCompetitve Advantage as interveningvariable known hypothesis accepted andsupported by empirical evidence is H1

there is positive influence of HumanCapital to Competitive Advantage H3there is positive influence of RelationalCapital to Competitive Advantage H5Structural Capital positive influence onthe performance of cooperative H7 thereis a positive influence CompetitiveAdvantage on Performance Performancecooperatives. While the hypothesis isnot accepted or rejected is H2 there is apositive influence Structural Capitalagainst Competitive Advantage H4 thereis a positive influence of Human Capitalon Cooperative performance H6 there ispositive influence of Relat ional Capitalon Performance Performance ofcooperatives. The indicators in thisstudy that support the results ofhypothesis testing and in accordancewith the implementation of cooperativesin South Tangerang is 1) human capitalconsisting of replacement TrainingProgram, Self-Driven Employee Abilityand Employee Attitudes 2). StructuralCapital consists of Team work Work,Employee complementary and goodorganizational Structure 3) .RelationalCapital consisting of Explanation ofproduct easy to understand by customer,Relationship with customer, Serviceapproaching to customer and Networksystem good with customer.

Recommendations1. For the next researcher, it is

suggested to add other variablesrelated to covering each componentof human capital, structural capitaland relational capital, competitiveadvantage and cooperativeperformance such as knowledgemanagement, customer relationshipmanagement and work motivation.

2. For cooperatives - co-operativesditangerang south in relationformulation of intellectual capitalmanagement which consists of 3components of human capital,relational capital and structuralcapital that can improve cooperative


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performance and achieve competitiveadvantage global level, then forcooperatives should pay attention tothe ideal indicators for each -components. For example 1). humancapital should pay more attention toemployee capability and employeecreativity by improving the training -training regularly related to theimprovement of competence andwork motivation, employeesatisfaction by improvingremuneration received by employees,2) structural capital should pay moreattention to system problems andorganizational procedures,accounting information system and3) relational capital should pay moreattention to basic marketingcapability issues, customer loyalty,market intensity and customerrelationship (member) byimplementing costumer relationshipmanagement (CRM) system tomanage data customer, Electroniccostumer relationship management(E-CRM) by using social media tointensify relationships withcustomers (members) online such asthrough facebook, twitter, instagramand so on, and expected cooperativescan apply E- Co mmerce bymarketing products and servicesonline through websites andspecialized applications such asclick-indomart apps to make it easierfor subscribers to order my productsand my modular applications forsavings and loan applications

3. For stakeholders such as SouthTangerang Cooperative Office withdue attention to the results of thisresearch, it is expected to be areference in conducting coaching tocooperatives in South Tangerang, sothat cooperatives can improveperformance and achieve globalcompetitive advantage.

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THE INFLUENCE OF HUMAN CAPITAL, STRUCTURAL CAPITAL …