Sri Muljaningsih

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, organizations can gain trust and integrity by following the rules and affecting their competitive 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 significantly 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 advantages. Other results of this study concluded that innovative work behavior was affected 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.