Citation:

Amie Kusumawardhani, Irene Rini Demi Pangestuti, Idris Idris, Diah Vera Bakti. "How Market Orientation and Intellectual Capital Enhance Firm Performance: The Role of Competitive Advantage in Indonesia's Creative Industry" International Research Journal of Economics and Management Studies, Vol. 5, No. 5, pp. 206-212, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I5P125

Abstract:

Firm performance depends not only on a firm's responsiveness to market signals but also on its ability to leverage intangible resources and convert them into competitive advantage. This study examines the effects of market orientation, learning orientation, intellectual capital, and competitive advantage on firm performance, while also testing the effect of intellectual capital on competitive advantage. Using survey data from 114 owners and managers of creative industry firms in Semarang, Indonesia, the study estimates the proposed relationships through Structural Equation Modeling (SEM). The results show that market orientation, intellectual capital, and competitive advantage have positive and significant effects on firm performance. Intellectual capital also exerts a positive and significant effect on competitive advantage. By contrast, learning orientation does not show a significant direct effect on firm performance. These findings suggest that market attentiveness and the effective deployment of intellectual capital matter more for performance than organizational learning processes that have not yet become deeply institutionalized. The study contributes to strategic management research by clarifying how intangible resources and competitive positioning jointly shape firm performance in a crisis-sensitive creative industry setting.

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Keywords:

Competitive Advantage, Firm Performance, Intellectual Capital, Market Orientation, Creative Industry.