Examining Relationship among Intellectual Capital, Internal Collaboration, External Collaboration and Distribution Performance

Purpose: This study aims to examine the effect of intellectual capital on both internal and external collaboration and its impact on distribution performance enhancement in public sector. Research design, data, and methodology: The study applied quantitative approach with the help of AMOS Structural Equation Modelling. The unit of analysis is the Indonesian local government. The research involved 430 leaders from local government agencies as respondents. Results: This study found that intellectual capital positively influences both internal and external collaboration as well as distribution performance. Furthermore, the current research confirms the different effect of internal collaboration and external collaboration on distribution performance; internal collaboration positively affects distribution performance, while the external one does not. Eventually, internal collaboration mediates the indirect effect of intellectual capital on distribution performance, whereas the external collaboration does not. Conclusions: This study strengthens and complements the lean stream by confirming the role of intellectual capital as critical antecedent of internal collaboration, external collaboration, and distribution performance. Moreover, this research underlines the critical role of internal collaboration as the intercourse which supports distribution performance enhancement in public sector. Lastly, the study highlights the benefits of external collaboration in distribution practice if appropriately and wisely managed.