Abdul  Rohim, Ubud  Salim, Made  Sudarma, Sumiati  , 
    The Influence of Intellectual Capital and Business Strategy Toward Innovation
Capability and Firms Performance the Case of Small Management
Enterprise Jombang Regency East Java Indonesia,
    International Business Management,
    Volume 11,Issue 6,
    2017,
    Pages 1199-1212,
    ISSN 1993-5250,
    ibm.2017.1199.1212,
    (https://makhillpublications.co/view-article.php?doi=ibm.2017.1199.1212)
    Abstract: The study of small firms in Indonesia become more strategic issue because of job creation and
generating income for more then 65% of are small entrepreneurs that encouraging employment in many type
of small industries including handicraft. However, unfortunately, some conditions of small industries are less
competitive to have expanding their products. This research is to conduct and investigates the cability of
Innovation and creativity as the main component as mediation of business strategy and the quality of
intellectual capital to drive business performance of small size industries in Jombang Regency East Java
Indonesia. This research have found that innovation capability is the most important latent variables that
successfully mediated business strategy and intellectual capital to have strongly impact to business
performance of small size industries in Jombang Regency East Java Indonesia.
    Keywords: Small firms;business strategy;intellectual capital and innovation; unfortunately;Jombang Regency;Indonesia