Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia

Research Article

The Role of Islamic Work Ethics Integration in Intellectual Capital for SMEs Performance Improvement

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  • @INPROCEEDINGS{10.4108/eai.27-8-2020.2303189,
        author={Abdul  Hakim and Dista Amalia Arifah and Norazamina  Mohamed},
        title={The Role of Islamic Work Ethics Integration in Intellectual Capital for SMEs Performance Improvement},
        proceedings={Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICIC},
        year={2020},
        month={12},
        keywords={islamic work ethics intellectual capital performance smes creative industry},
        doi={10.4108/eai.27-8-2020.2303189}
    }
    
  • Abdul Hakim
    Dista Amalia Arifah
    Norazamina Mohamed
    Year: 2020
    The Role of Islamic Work Ethics Integration in Intellectual Capital for SMEs Performance Improvement
    ICIC
    EAI
    DOI: 10.4108/eai.27-8-2020.2303189
Abdul Hakim1,*, Dista Amalia Arifah2, Norazamina Mohamed3
  • 1: Dept. of Accounting, Universitas Islam Sultan Agung
  • 2: Dept. of Accounting, Universitas Islam Sultan Agung & Economics Doctoral Program, Diponegoro University, Semarang Indonesia
  • 3: UiTM Malaka, Malaysia
*Contact email: abdulhakim@unissula.ac.id

Abstract

Companies with a good intellectual capital can be more competitive in the current business era if the companies are well managed. It is also applicable for Small and Medium Enterprises (SMEs). Islamic work ethics integration toward intellectual capital is expected to optimize the company performance further. This study aimed to explore and discuss the effect of Islamic work ethics integration in intellectual capital, which consist of human capital, structural capital, organizational capital, spiritual capital and technological capital, toward SME performance improvement. The populations of this study were SMEs in Semarang. This study used purposive sampling as the sampling technique. Based on the data processing results, it obtained 300 sample data. The results showed that human capital, structural capital, organizational capital, spiritual capital and technological capital have no effect on SMEs performance, thus the hypotheses were rejected. The existing SMEs do not explore intellectual capital as a competitive advantage. As the result, the integration of Islamic work ethics in intellectual capital does not improve the performance.