EFFECT OF INTELLECTUAL CAPITAL ON COMPANY PERFORMANCE MEDIATED BY SUSTAINABILITY GROWTH RATE

Abstract

This study aims to analyze the influence of Capital Employed, Human Capital, and Structural Capital on the Sustainability Growth Rate and Corporate Performance, as well as the mediating role of the Sustainability Growth Rate in the relationship between these forms of capital and Corporate Performance. Furthermore, the study examines the impact of the Sustainability Growth Rate on Corporate Performance. Globalization has intensified business competition, compelling companies to focus on intellectual capital rooted in science and technology. Data were collected from 45 companies listed on the Indonesia Stock Exchange (IDX) within the LQ45 index for the 2020–2022 period and analyzed using SmartPLS 4. The findings indicate that Capital Employed and Human Capital have a positive effect on both the Sustainability Growth Rate and Corporate Performance. Structural Capital, however, does not exert a significant influence on any of the variables. The Sustainability Growth Rate acts as a mediator for the effects of Capital Employed and Human Capital—but not Structural Capital—on Corporate Performance; additionally, the Sustainability Growth Rate itself has a positive impact on Corporate Performance.