Intellectual Capital as Mediator between Organizational Culture, Risk Management, and Construction Firm Performance

Purpose: This study examines the mediating role of intellectual capital in the relationship between organizational culture, risk management, and corporate performance in Indonesian construction firms.

Research Methodology: A quantitative approach was applied using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0. Data were collected from 281 respondents across eight established construction companies with more than five years of operational experience, including directors, managers, and project supervisors. The sample was determined using Slovin formula. Measurement model evaluation included outer loadings, Cronbach alpha, composite reliability, AVE, Fornell–Larcker criterion, and HTMT ratio. Hypotheses were tested using bootstrapping procedures.

Results: Organizational culture significantly and positively affects intellectual capital, while risk management also shows a positive significant effect. Organizational culture does not directly influence corporate performance, whereas risk management has a positive direct effect. Intellectual capital has a strong positive impact on corporate performance and serves as a significant mediator in both relationships.

Conclusions: Intellectual capital is the dominant determinant of corporate performance and acts as a full mediator for organizational culture and a partial mediator for risk management effects on performance.

Limitations: The study is cross-sectional and limited to large construction firms, restricting generalizability to smaller companies.

Contributions: This study contributes to strategic management and construction industry literature by confirming intellectual capital as the key mechanism linking organizational culture and risk management to firm performance.