Improving Intellectual Capital Management Strategies

Oct 13, 2025 by talynt.org 136 views

The Influence of Intellectual Capital, Leverage, and Company Size on Profitability and Its Effect on Company Value of the Food and Beverage Sub-Sector Listed on the Indonesia Stock Exchange for the 2012-2022 Period

Introduction

The food and beverage industry is one of the most competitive and dynamic sectors in the world, with a vast array of products and services catering to diverse consumer needs. In Indonesia, the food and beverage sub-sector is a significant contributor to the country's economy, with many companies listed on the Indonesia Stock Exchange (IDX). However, the industry faces numerous challenges, including intense competition, changing consumer preferences, and the need to maintain profitability and company value. This study aims to examine the effect of intellectual capital, leverage, and company size on profitability and its impact on company value in the Food and Beverage sub-sector listed on the IDX for the 2012-2022 period.

Methodology

This study uses a quantitative approach with the method Empiricals that test significant effects and directions of direct and indirect relationships between independent variables and dependent variables through intervening variables. The samples taken came from the Food and Beverage sub-sector companies listed on the IDX. The purposive sampling method is used to obtain relevant data, with a total of 45 companies taken from the population, and 14 companies are selected based on established criteria.

Results

Statistical test results show that intellectual capital has a negative and insignificant influence on profitability. Conversely, leverage and company size have a positive and significant influence on profitability. Furthermore, both intellectual capital, leverage, and profitability are proven to have a positive and significant influence on company value, while company size has a negative but not significant influence on the company's value.

Interestingly, the results of the path analysis using the Sobel test show that profitability as an intervening variable cannot mediate the effects of intellectual capital and leverage on company value. However, profitability is able to mediate the effect of company size on company value directly.

Additional Analysis and Explanation

Seeing further from the results of the study, the negative influence of intellectual capital on profitability may be caused by a lack of optimal utilization of this intangible asset. Although Intellectual Capital is an important asset, many companies may not fully understand how to optimize it in improving financial performance. Therefore, it is important for companies to improve intellectual capital management strategies in order to make a more positive contribution to profitability.

Leverage which shows a significant positive effect on profitability indicates that companies in this sub-sector can utilize debt to increase capital and increase operational outcomes. This indicates that the wise use of debt can be an effective strategy in increasing profitability.

The size of the company, despite having a positive influence on profitability, has a negative influence on the company's value. This could be caused by higher operational costs and the complexity of management which increases along with the increase in company size. Therefore, companies need to pay attention to operational efficiency and cost management in order to keep the company's value high.

Conclusion

Overall, this research provides valuable insights for companies in the Food and Beverage sector, especially in understanding the relationship between intellectual capital, leverage, company size, profitability, and company value. This knowledge can be utilized by company management in making strategic decisions to improve company performance and value in the market.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improving Intellectual Capital Management Strategies: Companies in the Food and Beverage sub-sector should improve their intellectual capital management strategies to optimize the utilization of this intangible asset and make a more positive contribution to profitability.
Utilizing Debt Wisely: Companies can utilize debt to increase capital and increase operational outcomes, but it is essential to use debt wisely to avoid financial risks.
Operational Efficiency and Cost Management: Companies need to pay attention to operational efficiency and cost management to keep the company's value high, despite the increase in company size.

Limitations of the Study

This study has several limitations, including:

Sample Size: The sample size of 14 companies may not be representative of the entire Food and Beverage sub-sector listed on the IDX.
Data Availability: The data used in this study may not be comprehensive, and there may be other factors that affect the relationship between intellectual capital, leverage, company size, profitability, and company value.
Methodology: The quantitative approach used in this study may not capture the complexity of the relationships between the variables.

Future Research Directions

Future research should focus on:

Investigating the Relationship between Intellectual Capital and Profitability: Further research should investigate the relationship between intellectual capital and profitability in the Food and Beverage sub-sector.
Examining the Impact of Leverage on Company Value: Research should examine the impact of leverage on company value in the Food and Beverage sub-sector.
Analyzing the Effect of Company Size on Operational Efficiency: Research should analyze the effect of company size on operational efficiency and cost management in the Food and Beverage sub-sector.

Conclusion

In conclusion, this study provides valuable insights into the relationship between intellectual capital, leverage, company size, profitability, and company value in the Food and Beverage sub-sector listed on the IDX for the 2012-2022 period. The findings of this study have implications for company management in making strategic decisions to improve company performance and value in the market.
Frequently Asked Questions (FAQs) on the Influence of Intellectual Capital, Leverage, and Company Size on Profitability and Company Value

Q: What is intellectual capital, and how does it affect profitability?

A: Intellectual capital refers to the intangible assets of a company, such as knowledge, skills, and expertise of its employees, as well as its patents, trademarks, and copyrights. The study found that intellectual capital has a negative and insignificant influence on profitability, suggesting that companies may not be optimizing the utilization of this intangible asset.

Q: What is leverage, and how does it affect profitability and company value?

A: Leverage refers to the use of debt to finance a company's operations. The study found that leverage has a positive and significant influence on profitability, indicating that companies can utilize debt to increase capital and operational outcomes. However, leverage also has a positive and significant influence on company value, suggesting that companies need to use debt wisely to avoid financial risks.

Q: What is the relationship between company size and profitability?

A: The study found that company size has a positive and significant influence on profitability, suggesting that larger companies tend to have higher profitability. However, company size also has a negative but not significant influence on company value, indicating that larger companies may face higher operational costs and management complexity.

Q: Can profitability mediate the effects of intellectual capital and leverage on company value?

A: The study found that profitability cannot mediate the effects of intellectual capital and leverage on company value, suggesting that these variables have a direct impact on company value. However, profitability can mediate the effect of company size on company value, indicating that profitability plays a crucial role in determining company value.

Q: What are the implications of the study's findings for company management?

A: The study's findings have implications for company management in making strategic decisions to improve company performance and value in the market. Companies should focus on optimizing the utilization of intellectual capital, utilizing debt wisely, and paying attention to operational efficiency and cost management to maintain profitability and company value.

Q: What are the limitations of the study?

A: The study has several limitations, including a small sample size, limited data availability, and a quantitative approach that may not capture the complexity of the relationships between the variables.

Q: What are the future research directions?

A: Future research should focus on investigating the relationship between intellectual capital and profitability, examining the impact of leverage on company value, and analyzing the effect of company size on operational efficiency and cost management.

Q: What are the practical implications of the study's findings for policymakers and regulators?

A: The study's findings have implications for policymakers and regulators in developing policies and regulations that support the growth and development of the Food and Beverage sub-sector. Policymakers and regulators should focus on creating an environment that encourages companies to optimize the utilization of intellectual capital, utilize debt wisely, and maintain operational efficiency and cost management.

Q: What are the implications of the study's findings for investors and stakeholders?

A: The study's findings have implications for investors and stakeholders in making informed investment decisions. Investors and stakeholders should focus on companies that have a strong intellectual capital management strategy, utilize debt wisely, and maintain operational efficiency and cost management to maintain profitability and company value.