STUDY OF THE INFLUENCE OF CAPITAL AND INTELLECTUAL CAPITAL ON EMPLOYEE PERFORMANCE USING STRUCTURAL EQUATION MODELING

Abstract

Social capital may boost economic development in companies that assume continuity. Trust, norms, and networks boost sector social capital. This study examines how social and intellectual capital affect employee performance at PT. Generation of Java-Bali Generating Unit Paiton-Probolinggo. A survey approach guided by the field's present state and participant interviews collected the research data. The research combined qualitative and quantitative methodologies. The Amos 29 software package was used to analyze questionnaire results using structural equation modeling. The research found a substantial link between social and intellectual capital and employee performance. Estimating social capital's effect on employee performance using 1.168. The correlation between intellectual capital and employee performance is 0.297, indicating a similar occurrence. Third hypothesis test showed intellectual capital's effect on employee performance was positive (0.059). At a significance level of 0.5 (5%), the computed critical value (CR) of 1.688 surpasses the barrier of ± 2.00.

Keywords

• social capital
• intellectual capital
• employee performance
• structural equation modelling.