Performance Improvement through the Unification of Islamic Work Ethics in Intellectual Capital : Comparative Study of Malaysia and Indonesia

Abstract

This research aims to examine the role of the unification of Islamic work ethics and Intellectual Capital in improving the performance of MSMEs in Malaysia and Indonesia, as well as the differences in the two countries. The population in this research is the U MKM creative industry of halal products. Sampling used purposive sampling. The analysis tool uses multiple regression. The research results show that the performance of Indonesian MSMEs is influenced by Organizational Capital, Relational Capital and Spiritual Capital . Meanwhile, the performance of Malaysian MSMEs is influenced by Organizational Capital and Relational Capital. Overall, the role of the unification of Islamic work ethics in Intellectual Capital in improving the performance of Indonesian and Malaysian MSMEs is no different.