International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

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 Volume 12, Issue 10 (October 2025), Pages: 129-138

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 Original Research Paper

Leveraging intellectual capital and MSME credit to drive rural bank performance: Insights from Jambi Province, Indonesia

 Author(s): 

 Iwan Eka Putra 1, Ermaini Ermaini 1, Etik Winarni 1, Syahmardi Yacob 2, *

 Affiliation(s):

  1Faculty of Economics and Business, Jambi Muhammadiyah University, Jambi City, Indonesia
  2Faculty of Economics and Business, University of Jambi, Jambi City, Indonesia

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 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0000-0002-6827-277X

 Digital Object Identifier (DOI)

  https://doi.org/10.21833/ijaas.2025.10.015

 Abstract

This study explores the impact of Intellectual Capital and MSME (Micro, Small, and Medium Enterprises) credit on the performance of rural banks in Jambi Province, Indonesia, with a focus on their role in promoting business growth. Using panel data regression analysis, the study applies three models—Pooled Least Squares (PLS), Common Effect Model (CEM), and Random Effect Model (REM)—to analyze data from rural banks. The results show that both Intellectual Capital and MSME credit significantly affect bank performance, both individually and together. Intellectual Capital contributes by enhancing employee skills and professionalism, while MSME credit supports business development. The study is limited to rural banks in Jambi, which may affect the generalizability of the findings, and the use of cross-sectional data limits causal conclusions. Future research should expand the geographic scope and use longitudinal data to observe long-term trends. The findings suggest that investing in human capital and managing MSME credit strategically can strengthen rural bank performance. This research contributes new insights into how Intellectual Capital and MSME credit influence rural banking, offering practical implications for bank managers and policymakers aiming to improve financial inclusion and regional economic growth.

 © 2025 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Intellectual capital, MSME credit, Rural banks, Bank performance, Economic growth

 Article history

 Received 16 March 2025, Received in revised form 27 July 2025, Accepted 30 September 2025

 Acknowledgment

We sincerely thank all those who supported this research. Special appreciation goes to the Rector and the Head of the Research and Community Service Institute at Universitas Muhammadiyah Jambi for their guidance and support. We are also grateful to the field researchers and key informants whose dedication ensured the accuracy of our data, as well as to the research team and faculty members for their collaboration and insights. Finally, we thank all respondents for their valuable contributions. May this research contribute meaningfully to knowledge and societal progress. 

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Putra IE, Ermaini E, Winarni E, and Yacob S (2025). Leveraging intellectual capital and MSME credit to drive rural bank performance: Insights from Jambi Province, Indonesia. International Journal of Advanced and Applied Sciences, 12(10): 129-138

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 Figures

  Fig. 1

 Tables

  Table 1  Table 2  Table 3  Table 4  Table 5 

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