An Investigation of Unexpected Forms of Capital in Small and Medium Enterprises (SMEs)

As the shift of economy towards knowledge and innovation, intellectual capital has become no less important than nowadays because it becomes one of key elements in creating value and sustainable business in facing global market challenges. This research focuses on investigating the interconnections between the various forms of capital, particularly psychological and social capitals toward enterprises’ intellectual capital. To fill the gap, this research proposes a new construct which is known as religious-psychological capital to accommodate the certain issues in the domain of economics relating to ethic, culture, and beliefs. This is an explanatory research approaching by quantitative with survey method. G-Form is used to distribute the questionnaire gathering 104 responses. Structural Equation Model (SEM) is used to create an in-depth analysis. Empirically, the result shows that all hypotheses are supported, and the model is validated. The findings of this research shed the light on SMEs’ actors for not only focusing on physical capital but also improving intellectual capital throughout religious-psychological and social capitals’ interconnection to maintain and create the sustainability of their businesses.