The Role of Open Innovation and Intellectual Capital on Business Sustainability: Study of Furniture MSMEs in Banjarmasin, Indonesia

Furniture MSMEs in Banjarmasin City face various challenges in achieving business sustainability. This research aims to identify and analyze the influence of open innovation on the sustainability of the MSME furniture business and analyze the influence of intellectual capital on the sustainability of the MSME furniture business. This research used a quantitative method by distributing questionnaires to 50 respondents, namely owners and managers of furniture MSMEs in Banjarmasin City. The sampling technique uses non-probability sampling with purposive sampling. Data analysis used descriptive analysis and PLS-based SEM with SmartPLS4.0. Open innovation (X1) and intellectual capital (X2) have a positive and significant influence on business sustainability (Y). In conclusion, open innovation and intellectual capital are important factors that contribute to the sustainability of the MSME furniture business in Banjarmasin City.

Open innovation and intellectual capital are two important factors that can help furniture MSMEs in Banjarmasin City achieve business sustainability.
Open innovation is a strategy that allows furniture Furniture MSMEs in Banjarmasin City need to increase intellectual capital by improving the quality of human resources and protecting intellectual property rights for their products (Belton, 2020;Bessy, 2017;Berrone, 2017).This research aims to identify and analyze the influence of open innovation on the sustainability of the MSME furniture business and the influence of intellectual capital on the sustainability of the MSME furniture business.

Business sustainability theory
Business sustainability is a concept that refers to the ability of an organization to operate sustainably in the long term.This is achieved by balancing economic,  (Boone, 2019;Branco, 2020;Carter, 2019).

Open innovation theory for business sustainability
Open innovation is a paradigm that encourages

Results and Discussion
The majority of respondents (50%) are between 40-

Conclusion
Open Innovation and intellectual capital have a positive and significant influence on the sustainability of the MSME furniture business in Banjarmasin City.
Furniture MSMEs in Banjarmasin City need to increase open innovation and intellectual capital to achieve business sustainability.
MSMEs to get ideas, knowledge, and technology from outside the company.Open innovation can help furniture MSMEs increase productivity, product quality, and competitiveness.Furniture MSMEs in Banjarmasin City need to increase open innovation by collaborating with various parties, such as research institutions, universities, and other companies.This collaboration can help furniture MSMEs to develop new and innovative products, as well as increase production efficiency.Intellectual capital is the intangible assets owned by a company, such as knowledge, skills, and brands.Intellectual capital can help furniture MSMEs increase company value, Increase competitiveness: The ability to adapt to change and create value for customers provides a competitive advantage in a dynamic market.4. Improve reputation: A good reputation as an innovative and trustworthy company can attract the best customers, investors, and talent.5. Improve longterm sustainability: Building intellectual capital helps companies achieve long-term goals and adapt to future challenges.Measuring and managing intellectual capital is an important step to ensure business sustainability.Various methods and measurement tools can be used to assess the value of intellectual capital, such as Balanced Scorecard: Which measures a company's performance from multiple perspectives, including financial, customer, internal processes, and learning and growth.Intellectual capital index (ICI): Measures the value of intellectual capital based on financial and non-financial indicators.Value Creation method: Measures the contribution of intellectual capital to the creation of value for the company.Intellectual capital is a strategic asset that plays an important role in business sustainability.By effectively managing and developing intellectual capital, companies can increase their competitiveness, achieve long-term goals, and build a solid foundation for a glorious future (Figge, 2022; Garcia-Gonzalez, 2020; Hahn, 2015) 3. Methods This research uses quantitative methods with the aim of examining the influence of open innovation (X1) and intellectual capital (X2) on business sustainability (Y) in furniture MSMEs in Banjarmasin City.The population of this research is all furniture MSMEs in Banjarmasin City.The sampling technique uses nonprobability sampling with purposive sampling.The research sample was 50 respondents selected based on the criteria: Owners and managers of furniture MSMEs in Banjarmasin City who were willing to fill and research variables.Descriptive analysis was carried out by calculating statistics such as mean, median, mode, standard deviation, and frequency.PLS-based SEM analysis with SmartPLS4.0 is used to test the influence of Open Innovation (X1) and intellectual capital (X2) on business sustainability (Y).SEM analysis was carried out using SmartPLS4.0software.SEM analysis is carried out by first examining the measurement model which assesses the validity and reliability of the construct and assesses convergent validity and discriminant validity.Then, continue with examining the structural model, which assesses the significance of the relationship between constructs, assesses the R-squared, adjusted R-squared, and Q-squared values, and assesses the goodness-of-fit (GoF) of the model.This research was conducted by paying attention to research ethics, namely respecting respondent privacy, ensuring confidentiality of respondent data, and obtaining respondent consent before filling out the questionnaire.

( 1 .
96), and the p-value of 0.000, which is lower than the alpha of 5% (0.05).These results indicate that intellectual capital has a positive and significant influence on business sustainability in Banjarmasin City furniture MSMEs.
collaboration and knowledge exchange with external parties to improve the company's internal capabilities.This is different from the traditional paradigm, in which companies focus on internal research and development to produce innovation.By accessing external knowledge and technology, companies can speed up the process of developing new products and services.By combining knowledge and technology from various sources, companies can produce higherquality innovations.By involving external parties in the innovation process, companies can reduce the risk of failure and increase the chances of success.There are several ways to implement open innovation: Collaboration with other companies: Companies can collaborate with other companies to develop new products and services.Technology acquisition: Companies can acquire technology from other companies; Technology licensing: Companies can license their technology to other companies; Involvement in communities: Companies can get involved in research and development communities to gain access to the latest knowledge and technologies.Furniture MSMEs that implement open innovation have better performance than those that do not.This shows that open innovation can help furniture MSMEs increase their competitiveness and achieve success.Some examples of implementing open innovation by furniture MSMEs include working with designers to develop new products, attending trade shows to learn about the latest trends, establishing relationships with new suppliers and customers, and participating in training and development programs to improve employee skills.Open innovation is an effective strategy to improve the performance of furniture MSMEs.By implementing open innovation, furniture MSMEs can access and utilize external knowledge and technology to improve their internal capabilities, speed up the innovation process, improve the quality of innovation, and reduce the risk of failure (intangible assets, such as patents, trademarks, copyrights, and industrial designs.3. Relational capital: The network of relationships and This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License collaborations a company has with customers, suppliers, and other partners.Research shows that furniture MSMEs that have high intellectual capital perform better than those with low levels.Employees who have high knowledge, skills, and experience can produce higher-quality products and services.Structured intangible assets can give companies a competitive advantage in the market.A strong network of relationships and collaboration can help companies gain access to new resources and opportunities.Here are some examples of how intellectual capital can improve the performance of furniture MSMEs, including knowledge of market trends: Furniture MSMEs that have knowledge of market trends can develop products and services that suit customer needs, furniture MSMEs that have employees with high design skills can produce products more attractive and innovative, a strong brand can help furniture MSMEs to attract customers and increase market share, strong relationships with suppliers can help furniture MSMEs to get quality raw materials at competitive prices and collaboration with partners can help furniture MSMEs to access new technology and expanding market reach.It is important to note that intellectual capital is not just about owning intangible assets but also about how a company manages and utilizes those assets.Furniture MSMEs that want to improve their performance need to develop strategies to identify, develop, and protect their intellectual capital, create a culture that values knowledge and learning, and build systems and processes to manage their intellectual capital effectively.By managing intellectual capital effectively, furniture MSMEs can improve their performance and achieve a competitive advantage in the market (Christmann, 2021; Delmas, 2022).

Table 1 .
Characteristics of respondents.) is significant.The t-statistic value is 2.963 greater than the t table (2.963 > 1.96), and the p-value is 0.003 < alpha 5% (0.05).Thus, open innovation has a positive and significant effect on the business sustainability of furniture MSMEs in Banjarmasin City.The influence of the intellectual capital variable (X2) on business sustainability (Y) is strongly significant.This is shown by the t-statistic value of 5.999, which is higher than the t-tablevalue