Intellectual Capital Readiness and the Performance of Village-Owned Enterprises in Indonesia: Mediation through Entrepreneurial Knowledge

Purpose -This study investigates the impact of intellectual capital readiness on the performance of village-owned enterprises.The study discovered a new index to measure intellectual capital readiness and also looked into whether the relationship is mediated by entrepreneurial knowledge.Theoretical framework -The relationship between intellectual capital readiness and the performance of village-owned enterprises is still rare.Design/methodology/approach -This research used a quantitative study with 148 management respondents from village-owned enterprises in Indonesia.The data were collected using an online survey.Findings -The findings show significant results.First, the Intellectual Capital Readiness Index (ICRI) shows a reasonable level of readiness.Second, the performance of village-owned enterprises is influenced by intellectual capital readiness.Third, entrepreneurial knowledge has a positive impact on the performance of villageowned enterprises.Finally, entrepreneurial knowledge moderates the impact of intellectual capital readiness on the performance of village-owned enterprises.Practical & social implications of research -The development of the ICRI offers a valuable tool for managers and policymakers to evaluate and improve the readiness of these enterprises to effectively leverage their intellectual capital.Originality/value -This research brings a fresh perspective to the field by introducing innovative methods and concepts to assess and enhance the performance of village-owned enterprises.