Author(s): Ginting, Y. M.
The purpose of this research is to analyse the model of the relationship of intellectual capital to the knowledge management system (KMS) of the Visual Communication Design (VCD) business in achieving sustainable competitive advantage (SCA). This research is quantitative research, analyses the relationship of intellectual capital on the KMS and SCA, then analyses the role of mediating KMS on the influence of intellectual capital on SCA. This research used a cross sectional cohort study. The population in this research consisted of the owners, managers, and creative designers in the VCD business in Riau Province, Indonesia. The sampling method is probability and using cluster sampling as a technique sampling. This research used 202 respondents. Data were collected by using the questionnaire and analysed by using AMOS SEM. The results of this research are intellectual capital influence the VCD business to achieve SCA both directly and indirectly through KMS mediation. Although the effect of the direct relationship is greater than indirect. This means that without KMS mediation, VCD business can achieve SCA. This research suggests that VCD businesses need to empower human capital, relational capital, and organizational capital to enhance SCA. Establish procedures for knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection can also be applied, with the aim of being able to maintain knowledge and adapt to changes that occur dynamically.