The Influence Of Employee Capability And Intellectual Capital On Performance Through Innovative Behavior As An Intervening Variable At Sei Baruhur Palm Oil Factory (PKS)

Abstract

This study investigates the influence of intellectual capital and employee capabilities on
performance, with innovative behavior serving as an intervening variable, at Sei Baruhur Palm
Oil Mill. The research targeted all permanent employees, totaling 122 individuals, and used a
saturated sampling method due to the small population. Data were collected through primary
sources, using structured questionnaires, and supplemented with secondary data from
documentation studies. Quantitative analysis was conducted using SPSS version 25, applying t
tests, Sobel tests, and path analysis to assess both direct and indirect relationships among the
variables. The findings reveal that employee capabilities significantly enhance innovative
behavior, and intellectual capital also has a positive and significant effect on innovative
behavior. Both capabilities and intellectual capital directly improve employee performance,
while innovative behavior itself positively influences performance. Moreover, innovative
behavior mediates the relationship between capabilities and performance, as well as between
intellectual capital and performance. These results suggest that organizations can strengthen
employee performance by developing both capabilities and intellectual resources, while
simultaneously fostering an environment that encourages innovation. The study underscores the
importance of integrating human and intellectual capital with innovative practices to achieve
higher productivity and organizational effectiveness. The findings provide practical guidance for
management at Sei Baruhur Palm Oil Mill to optimize workforce potential, promote creativity,
and maintain competitive advantage within the palm oil industry.
Keywords: Capability, Innovative Behavior, Intellectual Capital, and Performance.