NONE 20260505112922724 wseas/wseas content-registration-form+ja@crossref.org content-registration-form WSEAS TRANSACTIONS ON SYSTEMS 1109-2777 2224-2678 Djoko Setyadi Faculty of Economics and Business, Widyagama Mahakam University, INDONESIA Doddy Adhimursandi Department of Management, Faculty of Economics and Business, Mulawarman University, INDONESIA Rafly Amanda Faculty of Economics and Business, Widyagama Mahakam University, INDONESIA The Indonesian fishery industry, a major part of the economy of the country, needs to raise its abilities in knowledge absorption, human intelligence, and innovation. In a study conducted in Bali, Indonesia, this article attempts to clarify the impact of absorptive capability, intellectual capital, and innovation on the performance of tuna fishery companies. This research uses a descriptive quantitative method. Data was acquired through a survey of 85 tuna fishery companies in Bali, Indonesia. This study employed the partial least squares (PLS) method with the aid of SmartPLS 3. The results of our data indicate that absorptive capacity doesn't significantly affect a company's performance since absorptive capacities in fact are ordinary capabilities, while intellectual capital and innovation represent extraordinary capabilities and bring good influences to a company. Therefore, this study proposes that the tuna fishery enterprises in Bali should strengthen absorbing power, develop intellectual capital, and use innovation as a leverage point for competitive advantage. 05 05 2026 05 05 2026 309 24 https://creativecommons.org/licenses/by/4.0/deed.en_US 10.37394/23202.2026.25.24 https://wseas.com/journals/systems/2026/a485107-3366.pdf L. Wuwung, A. McIlgorm, and M. Voyer, “Sustainable ocean development policies in Indonesia: paving the pathways towards a maritime destiny,” Front Mar Sci, vol. 11, 2024, doi: 10.3389/fmars.2024.1401332. Y. Rochwulaningsih, S. T. Sulistiyono, N. N. Masruroh, and N. N. Maulany, “Marine policy basis of Indonesia as a maritime state: The importance of integrated economy,” Mar Policy, vol. 108, 2019, doi: 10.1016/j.marpol.2019.103602. ARISE+ Indonesia, “Navigating Prosperity: Indonesia’s Blue Economy Roadmap Sails Towards Sustainable Growth and Marine Preservation for Current and Future Generations,” 2023, [Online]. https://ariseplusindonesia.org/en/activities/perspectives/navi gating-prosperity-indonesia-blue-economyroadmap-sails-towards-sustainable-growthand-marine-preservation-for-current-andfuture-generations.html (Accessed Date: January 10, 2025). Perpustakaan.bappenas.go.id, “Indonesia Blue Economy Roadmap,” 2023, [Online]. https://perpustakaan.bappenas.go.id/elibrary/file_upload/koleksi/migrasi-datapublikasi/file/Unit_Kerja/Dir%20Industri% 2C%20Ekonomi%20dan%20Kreatif/Dumm y_Indonesia%20Blue%20Economy%20Roa dmap_Ebook.pdf (Accessed Date: January 10, 2025). Tran, N., Rodriguez, U., Chan, C. Y., Phillips, M. J., Mohan, C. V., Henriksson, P. J. G., Koeshendrajana, S., Suri, S., & Hall, S, “Indonesian aquaculture futures: An analysis of fish supply and demand in Indonesia to 2030 and role of aquaculture using the AsiaFish model,” Mar Policy, vol. 79, 2017, doi: 10.1016/j.marpol.2017.02.002. W. M. Cohen and D. A. Levinthal, “Absorptive capacity: A new perspective on learning and innovation,” in Strategic Learning in a Knowledge Economy, Routledge, 1990. H. Ince, S. Z. Imamoglu, and H. Turkcan, “The Effect of Technological Innovation Capabilities and Absorptive Capacity on Firm Innovativeness: A Conceptual Framework,” Procedia Soc Behav Sci, vol. 235, 2016, doi: 10.1016/j.sbspro.2016.11.078. N. Bontis, “Intellectual capital and business performance in Malaysian industries,” Journal of Intellectual Capital, vol. 1, no. 1, 2020. P. R. Lawrence and J. W. Lorsch, Organization and Environment: Managing Differentiation and Integration. Harvard University Press, 1967. C. Y. Chan, N. Tran, S. Pethiyagoda, C. C. Crissman, T. B. Sulser, and M. J. Phillips, “Prospects and challenges of fish for food security in Africa,” Glob Food Sec, vol. 20, 2019, doi: 10.1016/j.gfs.2018.12.002. F. Guo, Y. Li, L. M. Maruping, and A. Masli, “Complementarity Between Investment in Information Technology (IT) and IT Human Resources: Implications for Different Types of Firm Innovation,” Information Systems Research, vol. 34, no. 3, 2022, doi: 10.1287/isre.2022.1185. P. J. Richard, T. M. Devinney, G. S. Yip, and G. Johnson, “Measuring organizational performance: Towards methodological best practice,” Journal of Management, vol. 35, no. 3, 2009, doi: 10.1177/0149206308330560. B. Lyu, Q. Qi, F. Xiao, and W. Su, “The Influence of Performance Appraisal Justice on Employee Job Performance: A Dual Path Model,” Sage Open, vol. 13, no. 3, 2023, doi: 10.1177/21582440231194513. D. Bendler and M. Felderer, “Competency Models for Information Security and Cybersecurity Professionals: Analysis of Existing Work and a New Model,” ACM Transactions on Computing Education, vol. 23, no. 2, pp. 1–33, 2023, doi: 10.1145/3573205. S. Laborde, D. Kauschke, T. J. Hosang, F. Javelle, and E. Mosley, “Performance Habits: A Framework Proposal,” Front Psychol, vol. 11, 2020, doi: 10.3389/fpsyg.2020.01815. G. P. Latham, “The motivational benefits of goal-setting,” Academy of Management Perspectives, vol. 18, no. 4, pp. 126–129, 2004, doi: 10.5465/ame.2004.15268727. V. Kristinae, I. Wardana, I. G. A. K. Giantari, and A. Rahyuda, “The role of powerful business strategy on value innovation capabilities to improve marketing performance during the COVID19 pandemic,” Uncertain Supply Chain Management, vol. 8, no. 4, 2020, doi: 10.5267/j.uscm.2020.8.005. H. Bouwman, S. Nikou, and M. de Reuver, “Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?,” Telecomm Policy, vol. 43, no. 9, 2019, doi: 10.1016/j.telpol.2019.101828. C. Curado, L. Muñoz-Pascual, and J. Galende, “Antecedents to innovation performance in SMEs: A mixed methods approach,” Journal of Business Research, vol. 89, 2018, doi: 10.1016/j.jbusres.2017.12.056. M. F. Mohd Sam and Y. Hoshino, “Sales growth, profitability and performance: empirical study of Japanese ICT industries with three Asean Countries,” Interdisciplinary Journal of Contemporary Research in Business, vol. 4, no. 11, 2013, [Online]. https://ssrn.com/abstract=2250909 (Accessed Date: March 4, 2025). S. M. Chege, D. Wang, and S. L. Suntu, “Impact of information technology innovation on firm performance in Kenya,” Information Technology for Development, vol. 26, no. 2, 2020, doi: 10.1080/02681102.2019.1573717. S. A. Zahra and G. George, “Absorptive capacity: A review, reconceptualization, and extension,” Academy of Management Review, vol. 27, no. 2, 2002, doi: 10.5465/amr.2002.6587995. M. Xue, F. Boadu, and Y. Xie, “The Penetration of Green Innovation on Firm Performance: Effects of Absorptive Capacity and Managerial Environmental Concern,” Sustainability, vol. 11, no. 9, 2019, doi: 10.3390/su11092455. K. Pu and W. Liu, “Is absorptive capacity the ‘panacea’ for organizational development? A META analysis of absorptive capacity and firm performance from the perspective of constructivism,” PLoS One, vol. 18, no. 2, 2023, doi: 10.1371/journal.pone.0282321. E. N. Loukis, M. Janssen, and I. Mintchev, “The Effects of Adaptation Actions and Absorptive Capacity on SaaS Benefits and Firm Performance,” in AMCIS, 2017. G. Martín de Castro, P. López Sáez, and J. Emilio Navas López, “The role of corporate reputation in developing relational capital,” Journal of Intellectual Capital, vol. 5, no. 4, pp. 575–585, 2004, doi: 10.1108/14691930410567022. P. D. Astuti, A. Chariri, and L. K. Datrini, “Understanding the Antecedents and Consequences of Sustainable Competitive Advantage: Testing Intellectual Capital and Organizational Performance,” Economies, vol. 11, no. 4, 2023, doi: 10.3390/economies11040120. J. Chen, X. Zhao, and Y. Wang, “A new measurement of intellectual capital and its impact on innovation performance in an open innovation paradigm,” International Journal of Technology Management, vol. 67, no. 1, 2015, doi: 10.1504/IJTM.2015.065885. J. Ji and L. Ma, “Research on the Relationship Among Intellectual Capital, Learning from Failures and Enterprise Innovation Performance,” in Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018), Atlantis Press, Feb. 2019, pp. 471– 474. doi: 10.2991/ssmi-18.2019.79. A. A. A. Sharabati, N. S. Shamari, A. N. I. Nour, A. B. I. Durra, and K. M. Moghrabi, “The impact of intellectual capital on business performance in Kuwaiti telecommunication industry,” International Journal of Business Performance Management, vol. 17, no. 4, 2016, doi: 10.1504/IJBPM.2016.079278. V. Costa, L. Silva, and L. Paula, “Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sector,” Intangible Capital, vol. 16, no. 2, 2020. K. Černe and D. Etinger, “IT as a part of intellectual capital and its impact on the performance of business entities,” Croatian Operational Research Review, vol. 7, no. 2, 2016. R. Hejazi, M. Ghanbari, and M. Alipour, “Intellectual, Human and Structural Capital Effects on Firm Performance, As Measured by Tobin’s Q,” Knowledge and Process Management, vol. 23, no. 4, 2016, doi: 10.1002/kpm.1529. J. Tidd and J. R. Bessant, Managing innovation: integrating technological, market and organizational change. John Wiley & Sons, 2020. H. Volberda, N. J. Foss, and M. A. Lyles, “Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field,” 2009. [Online]. Available: Center for Strategic Management and Globalization. SMG Working Paper No. 10/2009. P. Sarango-Lalangui, M. Castillo-Vergara, O. Carrasco-Carvajal, and A. Durendez, “Impact of environmental sustainability on open innovation in SMEs: An empirical study considering the moderating effect of gender,” Heliyon, vol. 9, no. 9, 2023, doi: 10.1016/j.heliyon.2023.e20096. H. Li, D. Wu, K. C. Chan, and J. Chen, “The impact of technology export regulations on corporate R&D investments,” Borsa Istanbul Review, vol. 23, no. 2, 2023, doi: 10.1016/j.bir.2022.11.001. S. Wei, H. Liu, and X. Chen, “The impact of supply chain digitalization on supply chain performance: A moderated mediation model,” Information Technology and Management, 2024. A. Amiri, “The bundled task assignment problem in mobile crowdsensing: a lagrangean relaxation-based solution approach,” Information Technology and Management, 2024. R. Lee, J. H. Lee, and T. C. Garrett, “Synergy effects of innovation on firm performance,” Journal of Business Research, vol. 99, 2019, doi: 10.1016/j.jbusres.2017.08.032. Y. Lian, Y. Li, and H. Cao, “How does corporate ESG performance affect sustainable development: A green innovation perspective,” Frontiers in Environmental Science, vol. 11, 2023, doi: 10.3389/fenvs.2023.1170582. U. Udriyah, J. Tham, and S. Azam, “The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs,” Management Science Letters, vol. 9, no. 9, 2019, doi: 10.5267/j.msl.2019.5.009. P. P. Ganzer, C. Chais, and P. M. Olea, “Product, process, marketing and organizational innovation in industries of the flat knitting sector,” RAI Revista de Administração E Inovação, vol. 14, no. 4, 2017, doi: 10.1016/j.rai.2017.07.002.