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This study refers to the theory of knowledge-based view which revealed knowledge as the source of the organization to achieve competitive advantage. This study applies intellectual capital and knowledge management as variables to test the effect on firm performance. The research data were garnered using primary data in the form of a questionnaire from directors of rural banks in the Riau Islands Province of Indonesia. Hypothesis testing using Structural Equation Modelling (SEM) method. The results showed that intellectual capital and knowledge management have a positive and significant impact on firm performance.

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