Intellectual Capital's Influence on Financial Performance: Mediating and Moderating Factors in Indonesia's Real Estate Sector

Abstract

The property and real estate sector in Indonesia is essential for the development of vibrant urban areas. This study explores how intellectual capital influences financial performance, highlighting its significant role in driving innovation and competitiveness. Using a Resource-Based View framework, the research incorporates capital structure and firm size as moderating variables to analyse their effects on financial performance. The results show a strong positive correlation between intellectual capital and financial performance, while capital structure has a negative impact. Furthermore, larger companies are able to utilize their intellectual capital more efficiently, leading to improved financial results. These findings emphasize the importance of effectively managing both intellectual capital and capital structure to gain a competitive edge in the real estate sector. This research offers a deeper insight into the factors that affect financial performance in this sector, providing valuable perspectives for strategic financial management and laying the groundwork for future studies beyond Indonesia.