“Achieving competitive advantage through spiritual capital, innovation work behavior, and organizational learning”

Spiritual capital is one of the essential intellectual capital that drives individuals and organizations to run the business following the law and standards. As a result, organi­ zations can gain trust and integrity by following the rules and affecting their competi­ tive advantages. This study analyzes competitive advantage based on spiritual capital, innovative work behavior, and organizational learning, which are reflected in two dimensions: exploratory and exploitative learning. The research population was 53 businesspersons of handicraft industries in the Malang City of Indonesia selected by saturated sampling techniques. A research instrument collected data in a structured questionnaire distributed to business people; the data were analyzed with SmartPLS 3.0. The results are interesting because they showed that spiritual capital did not sig­ nificantly affect competitive advantage, both directly with a coefficient of 0.090 and as a mediator with a coefficient of 0.030 for innovative work behavior on competitive ad­ vantages. Other results of this study concluded that innovative work behavior was af­ fected significantly by exploratory learning with a coefficient of 0.412 and exploitative learning with a coefficient of 0.139. Indirectly, exploratory and exploitative learning have a significant impact on spiritual capital with a coefficient of 0.139 for exploratory learning and 0.112 for exploitative learning. Spiritual capital was affected significantly by innovative work behavior with a coefficient of 0.331, and innovative work behavior affected competitive advantages with a coefficient of 0.371. asset is knowledge in the form of intellectual capital. The result of previous studies on competitive advantage showed that key deter­ minant for small and medium enterprises (SMEs) to acquire compet­ itive advantage is their ability to develop unique products and their flexibility to adopt new technologies determinant to affect competitive advantage is intellectual capital


INTRODUCTION
The company needs competitive advantages (CA) to survive in the business. In an era of industry 4.0, competition is very tight, and com panies need to find an efficient and practical approach to improve their competitive advantage. Internal resources are crucial factors of competitive advantage, and physical and intangible assets. One intan gible asset is knowledge in the form of intellectual capital. The result of previous studies on competitive advantage showed that key deter minant for small and medium enterprises (SMEs) to acquire compet itive advantage is their ability to develop unique products and their flexibility to adopt new technologies (William & Hare, 2012). Another determinant to affect competitive advantage is intellectual capital (IC). The experts mentioned three dimensions of intellectual capital: struc tural capital, human capital, and relational capital (Pulic, 2008). Gillet (2002) introduced a new dimension of intellectual capital, named spiritual capital (SC), which, according to Ismail (2005), is tacit know ledge, faith, and emotions embedded in an individual's mind and heart of an organization's intellectual capital. Individuals and organi zations need to ensure business operations are run by law and standards, financial regulation, and other aspects that ultimately will improve company performance (Abdullah & Sofian, 2012). This intellectual capital also can trigger the creation of competitive advantage (Aas & Pedersen, 2011;Ismail, 2005). As a result, they created value to develop and survive (Manes Rossi et al., 2016) and create a competitive advantage (Liu, 2017). This study was intended to follow up on Liu (2017) to use the intellectual capital dimension as a mediation for the relationship between innovative work behavior (IWB) and competi tive advantage. However, this paper focused on spiritual capital (SC), which has not been widely studied as one of the intellectual capital dimensions.
One determinant of intellectual capital is innovative work behavior (Liu, 2017). Innovative work be havior is a form of innovation at the individual level (Waenink, 2012). Innovation will not appear when employees do not have innovative work behavior. Therefore, innovation is vital as one fundamental concept in industry 4.0. Innovation is driven by seeing connections, finding opportunities, and taking advantage of them (Bessant & Tidd, 2013).
Employees' innovative work behavior depends on organizational learning (OL) to increase the ability to develop new knowledge and encourage employee innovation behavior. In addition, rapid environmen tal changes make learning orientation affect the industrial environment and a critical factor in creating organizational CAs (Liu, 2017).
Employees' innovative work behavior in a learning orientation perspective will facilitate the company to get more economic benefits from its competitors (Scott & Bruce, 1994), developing ideas into tangible works. However, implementing these ideas did not arise naturally from employees but needs to be en couraged in the internal and external environment to trigger the change and continuously update exi s ting knowledge to develop new ideas to meet customer satisfaction needs. Therefore, the importance of OL consists of two dimensions to affect innovative work behavior: exploratory learning and exploitative learning (Liu, 2017). Through these two dimensions, the specific learning mechanism provides continu ous improvements from developing the company's core competencies (Gupta & Polonsky, 2014) to facil itate the ability to create, improve, and modify the innovative work behavior (Fraj et al., 2015).
The research problem is whether spiritual capital, organization learning, and innovative work behavior have a significant impact on competitive advantages. In addition, it is also substance to study the media ting impact of spiritual capital on innovative work behavior and competitive advantages.

LITERATURE REVIEW
Competitive advantages are vital factors for the fu ture of the company. They need to ensure a better position than their competitors in many factors, including product and services, technology, re sources, market, and network. Udriyah et al. (2019) found that innovation can improve compe titive advantages. Saadatyar et al. (2020) confirmed that spirituality improves competitive advantages be cause spirituality increases organization commit ment, which is essential for competitive advantag es. Mathew et al. (2018) affirmed that spirituality increases job satisfaction and, in the end, im proves the competitive advantages. Rajapathirana and Hui (2018) concluded that innovation is a key to winning the future of business competition. Liu (2017) also provided empirical evidence that com petitive advantage can be created through organi zational learning, innovative work behavior, and intellectual capital. Theoretically, many studies conclude that the intellectual capital of human, structural, and relational capital were essential to create knowledge and innovation (Edvinsson et al., 2004). OL and SC are two drivers of compet itive advantage (Aas & Pedersen, 2011). Stewart (2002) stated that intellectual capital is the third 'big idea' in the last two decades of mana gement theory besides total quality management and reengineering. Thus, companies with bet ter intellectual capital management have a better competitive advantage (Wiig, 1997). Intellectual capital is an essential factor in creating know ledge and innovation (Edvinsson et al., 2004). It facilitates companies to seize opportunities and fundamental attributes to create value and make the company survive (Manes Rossi et al., 2016). Referring to Ismail (2005), spiritual capital as part of intellectual capital is significant for individuals and organizations to influence and ensure business operations run according to law and standards, fair in terms of finance, and others that ultimately will improve company performance (Abdullah & Sofian, 2012).
Spiritual capital is one of the dimensions of intel lectual capital. Ismail (2005) stated that discussion on intellectual capital based on Islamic religious beliefs produces the concept of spiritual capital complements that it consists of structural capital, human capital, and relational capital. This rela tional capital was called social capital (Liu, 2017). Furthermore, Malloch (2010) said that spiritual capital as a dimension of intellectual capital has the same impact as another dimension of intellec tual capital on business. The point is that a renew al of spiritual capital in a company is faithguid ed achieved. Intellectual capital is unique in cer tain companies and cannot be compared to other companies.
Several studies have shown that intellectual capital affects competitive advantage for businesses and encourages innovation (Edvinsson et al., 2004;Kong, 2010;Lindgren et al., 2009). This study used the same concept of spiritual capital as human capital proposed by Liu (2017) to explain its effect on creating competitive advantage affected by hu man capital. Alnachef et al. (2017) showed that hu man capital, structural capital, and relational capi tal have a significant influence, and only spiritual capital has no effect on competitive advantage.
Innovation is the basis for a competitive compa ny. Every organization wants to achieve success and survival. An essential element to support this goal is to increase innovative work behavior. Behavioral innovative work is individual activities required to develop innovation (Janssen, 2000) that will improve competitive advantage. Previous studies found that innovation was an essential factor to helps organizations have a sustainable competitive advantage over competitors and al so a significant contributor to the longterm sur vival of a company (Janssen, 2000;Karchegani et al., 2013) and indirectly through the human capi tal (Liu, 2017). Marshall and Parra (2019) stated that competition could encourage each individual in a company to be innovated, either directly or through spiritual capital as one dimension of in tellectual capital. Based on the above description, the effect of innovative work behavior on compet itive advantages can be concluded.
Human is the most crucial factor in innovative behavior, and they also can make this innovation spread in the whole company or only stay at the individual level. Liu (2017) stated that innovative work behavior affects intellectual capital. Spiritual capital was the fourth dimension of intellectu al capital (Gillet, 2002;Ismail, 2005). Sundbo et al. (2007) stated that innovative work behavior would increase the company's ability to produce efficiently. Therefore, it was possible with the same effect on spiritual capital as a dimension of IC. According to Liu (2017), innovative work behav ior affects dimensions of intellectual capital. This concept was used in this study to examine the fourth dimension of intellectual capital, namely spiritual capital. Therefore, this innovative work behavior also affects spiritual capital. Innovative work behavior becomes a form of innovation at the individual level (Waenink, 2012) and one of the fundamental concepts in innovation, espe cially related to technology. Therefore, developing innovative work behavior will ultimately lead to spiritual capital creation. Based on the above, in novative work behavior effect on spiritual capital can be concluded.
Spiritual capital can create innovative behavior effect on the entire company. Spiritual capital is the same dimension as HC, so there is a possibility that spiritual capital mediates the effect between innovative work behavior and competitive advan tage. This research novelty compared to previous studies, especially the study from Liu (2017), was to find a new phenomenon of SC dimension that mediated innovative work behavior on competi tive advantages. In this study, SC uses the Islamic Religion principle as most religions in Malang City. Basic principles of values are unity, vicege rent, and justice. Based on the above description, innovative work behavior has an effect on compe titive advantages through spiritual capital.
Organizational learning has a crucial role for an organization that wants high competitive ad vantages. PerisOrtiz et al. Learning theory has been explored in many stud ies. Various insight findings of learning theory, such as a new insight (Argyris & Schon, 1977), a new structure (Chandler, 1962), and a combina tion of new insight and structure (Namada, 2018). Development of knowledge associated with the effec tiveness of previous and future actions (Fiol & Lyles, 1985), mental models of organization mem bers (Starbucks & Whalen, 2008) that affect em ployee motivation to engage in workplace learning (Bryson et al., 2006) or a search and modification of knowledge, skills, strategies, beliefs, attitudes, and behavior (Schunk, 2012), especially from cog nitive constructions dimension. Innovative work behavior will not occur by itself but will be affect ed by organizational learning, both exploratory and exploitation learning.
This study focused on two organizational learn ing dimensions, namely exploratory and ex ploitative learning. These two dimensions can prove that the development of insight know ledge was a change process to increase the abil ity of organizations to acquire and develop new knowledge. The concepts of explorative and exploitative learning were widely used to dif ferentiate learning orientation and innovative orga nization behavior (March, 1991). Tummers (2016) examined the learning opportunities to predict IWB through job involvement and psy chological capital based on the job demandsre sources (JDR) model. Liu (2017) researched ways to create competitive advantage through the perspective of organizational learning, in novation behavior, and intellectual capital. The results showed that companies with exploratory and exploitation learning could seize opportu nities and competitive advantages through in creasing innovative work behavior and human capital. This indicates that exploratory and ex ploitation learning will raise spiritual capital through innovative work behavior.

AIMS AND HYPOTHESES
This study aims to explore the impact of spiritual capital, innovative work behavior, and organiza tional learning on competitive advantages; there fore, the following hypotheses are proposed: H1.a: Exploratory learning has a significant effect on innovative work behavior.
H1.b: Exploitative learning has a significant effect on innovative work behavior.
H2.a: Exploratory learning has a significant effect on spiritual capital through innovative work behavior.
H2.b: Exploitative learning has a significant effect on spiritual capital through innovative work behavior.
H3: Innovative work behavior has a significant effect on spiritual capital.
H4: Spiritual capital has a significant impact on competitive advantage.
H5.a: Innovative work behavior has a significant effect on competitive advantage.
H5.b: Innovative work behavior has a significant effect on competitive advantage through spiritual capital.

METHODS
This study is explanatory. Data were collected from 53 business persons of handicraft industries in the Malang City using a questionnaire with saturated sampling and analyzed using Smart PLS 3.0.
The questionnaire format was structured and con tained closeended questions. A fivepoint Likert scale measured the data, starting from 1 = com pletely disagree until 5 = completely agree. Data are analyzed with descriptive and inferential sta tistics. Data are tested for validity and reliabili ty in outer model testing and the goodness of fit and path coefficient for hypotheses testing in the inner model. The measurements of variables are described as follows: 1. Competitive Advantage (Y). It is the position of a company in dominating the competition to produce products based on resources that are valuable, rare, inimitability, and organi zational. Indicators to measure competitive advantage refer to Kuncoro and Suriani (2018) and Barney (1991). 13 items consist of four items for valuable resources, 1 item -for ra re, two items -for inimitability, and six -for organizational.
2. Spiritual Capital (Z1). It is a capital to make humanity sustainable to nurture and sustain the human spirit (Zohar & Marshall, 2004

Respondent characteristics
The respondent characteristics were described based on gender, age, and education level. Most of the respondents were men (52.8%), the age was above 30 years old (56.6%), and they had higher education (56.6%). In addition, most of the com panies were above five years old (52.8%), and the most extensive business was handicraft (26.4%). This indicated that the handicraft business in Malang City had been developed for a long time.  Table 2.  Figure 1.
Hypotheses testing uses direct and indirect effect values in SmartPLS results as described in Table 3. H1a is accepted; it means explorative learning has a significant effect on innovative working behav ior. H1b is accepted; it means exploitative learning has a significant effect on innovative working be havior. H3 is accepted; it means innovative work ing behavior has a significant effect on spiritual capital. H4 is not accepted; it means spiritual cap ital has no significant effect on competitive advan tage. H5 is accepted; it means innovative working behavior has a significant effect on competitive advantages.
The mediation testing used steps suggested by Baron and Kenny (1986) that are described as follows. The effect between innovative work be havior (Z2) and competitive advantage (Y) was tested. The direct effect test had a path coeffi cient of 0.371 and a pvalue of 0.000. It means innovative work behavior (Z2) directly affects competitive advantage (Y). The effect test between innovative work behavior (Z2) and competitive advantage (Y) through spiritual capital (Z1) had a path coefficient of 0.030 and a pvalue of 0.138. These results showed that innovative work behavior (Z2) did not have an indirect effect on competitive advantage (Y) through spiritual capital (Z1), so the interven ing variable of spiritual capital (Z1) is not a me diation variable.

DISCUSSION
The results showed that organizational learning dimensions, both exploratory and exploitative learning, had a significant positive effect on in novative work behavior. This result is consistent with Fraj et al. (2015). This indicated that organi zational learning allows companies to get experi ence through knowledge exploration to create new product processes and provide customer value. Organizational learning can respond quickly and in a timely manner to respond to environmental changes. Explorative learning is needed to develop, improve, and modify innovative work behavior to   (Fraj et al., 2015). It involves organizations in pursuing new know ledge and exploration (Namada, 2018).
These results indicated that exploratory learning is important to get new knowledge, such as adopting the latest technology of production and marketing to reduce the timeline for production. This study result also indicated that exploitative learning drives a company to consolidate current know ledge and existing capabilities, improve knowl edge, and has the ability to do efficient innovation at all level of the organization. The company also has less wasted materials, reduces production time, and operates more efficiently (Namada, 2018).
Exploitative learning is obtained by providing various solutions for products such as quality of raw materials, completing product orders, quality of product outputs, and other issues of customer complaints. This makes handicraft entrepreneurs able to continue to improve themselves with all the creative and innovative work behavior to achieve production efficiency.
Exploratory and exploitative learning has a signi ficant positive effect on spiritual capital through innovative work behavior. This study referred to Liu (2017) to use the human capital dimension to represent intellectual capital. Spiritual capital in this study is based on the opinion of Gillet (2002) and Ismail (2005) to describe the novelty of this study and its results. Liu (2017) stated that inno vative work behavior mediates the effect of ex ploratory learning and exploitative learning on spiritual capital.
Innovative work behavior has a significant po sitive effect on spiritual capital. According to Karchegani et al. (2013), innovation needs to be implemented to strengthen intellectual capital de velopment, particularly spiritual capital, because all stakeholders are more confident and have grown in knowledge. The dimensions of spiritual capital, especially emotional energy and heart strength, were truly created when all stakeholders had positive work innovation behavior. Consistent with Jong and Den Hartog (2010), various mecha nisms through the social context affect individual creativity, which was characterized by social effect or exchange because social access and information on innovative work behavior support innovation implementation. Karchegani et al. (2013) said that innovation creates not only a competitive advantage but also a collaborative advantage that results from exploitation learning. Innovation has been recognized as an essential driver of eco nomic growth and drives organizations to offer better products and quality, also increasing the company's spiritual capital. However, the results of this study conclude that spiritual capital has no significant effect on competitive advantag es. Although Palmer and Wong (2013) stated that spiritual capital could increase, inspire and attract individuals to be more motivated, this is not the case for handicrafts in Malang City. This possibility was caused because spiritual capital is only adopted at the individual level and not the company. An individual has many good positive values, such as the presence of emotional ener gy, enthusiasm, pleasure, selflessness in produc ing good and productive performance, and con fidence that they can develop a business. All of the spiritual capital adopted in individuals and having a determination in developing a business has become an integral and inherent part of indi viduals throughout the company. Thus, the com pany automatically has unique resources through spiritual capital at the person or individual level only and is not significant yet at the company level. This study's results were consistent with Guest (2007) and Hodge (2000), who conclud ed that the spiritual aspect is individual capital that makes a company unique but needs to be involved at the company level; therefore, it will become a competitive advantage. A company's competitive advantage can also be created from the company's innovative work behavior in de veloping innovation (Janssen, 2000) and individ ual innovation level (Waenink, 2012).
Innovative work behavior has a significant effect on competitive advantage. These results are con sistent with Indrawati . Thus, innovative work behavior has a significant effect on competitive advantage. Furthermore, the pos itive path coefficient indicates that human re sources with high innovative work behavior will increase competitive advantage.
Finally, although innovative work behavior di rectly affects competitive advantage, it has no sig nificant effect on competitive advantage through spiritual capital. This shows that the company's competitive advantage was built on a foundation of innovation in addition to efficiency, quality, and customer responsiveness. Therefore, compa nies should not only consider internal resources to create competitive advantage, as stated by Knott (2009), companies must take into account the dy namics of external conditions.

CONCLUSION
This study found that innovative work behavior and organizational learning have an effect on competi tive advantages. However, it failed to prove that spiritual capital can create competitive advantage, both directly and as a mediation variable. This may occur because spiritual capital is inherent in the daily activities of individuals, so it automatically becomes the basis for working activities in the company. This unique individual spiritual capital needs to affect the company to become competitive advantage.
This study affirmed the importance of innovative work behavior for competitive advantages. Learning culture, both exploratory and exploitative learning, has a crucial role in developing innovative work behavior. Exploratory and exploitative learning variables also can be proved as a change process to increase the ability of organizations to acquire and develop new knowledge. This study contributes to resourcebased theory (RBT) for spiritual capital that has not been widely studied as a dimension of intellectual capital. This study also contributes to developing organizational learning theory about the importance of developing knowledge that drives innovative work behavior for competitive advan tage. The study findings have practical implications that companies need to facilitate innovative work behavior to improve their competitive advantages.
This study has limitations. First, it did not examine the direct effect of exploratory learning and exploit ative learning on spiritual capital; therefore, future research should examine the direct effect. Secondly, it only examines one dimension of intellectual capital, i.e. spiritual capital, to determine its effect on competitive advantage. Therefore, future research should examine all dimensions of intellectual capital.