Purpose – This study investigates the impact of intellectual capital readiness on the performance of village-owned enterprises. The study discovered a new index to measure intellectual capital readiness and also looked into whether the relationship is mediated by entrepreneurial knowledge.
Theoretical framework – The relationship between intellectual capital readiness and the performance of village-owned enterprises is still rare.
Design/methodology/approach – This research used a quantitative study with 148 management respondents from village-owned enterprises in Indonesia. The data were collected using an online survey.
Findings – The findings show significant results. First, the Intellectual Capital Readiness Index (ICRI) shows a reasonable level of readiness. Second, the performance of village-owned enterprises is influenced by intellectual capital readiness. Third, entrepreneurial knowledge has a positive impact on the performance of village-owned enterprises. Finally, entrepreneurial knowledge moderates the impact of intellectual capital readiness on the performance of village-owned enterprises.
Practical & social implications of research – The development of the ICRI offers a valuable tool for managers and policymakers to evaluate and improve the readiness of these enterprises to effectively leverage their intellectual capital.
Originality/value – This research brings a fresh perspective to the field by introducing innovative methods and concepts to assess and enhance the performance of village-owned enterprises.