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The impact of human resource practices, employee quality and innovation on performance: An analysis of woven fabric smes

Zuraida U.a, Gustomo A.a, Bekti R.a, Pangestu A.B.a

a School of Business and Management, Institut Teknologi Bandung, Indonesia

[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© 2017 Serials Publications Pvt. Ltd.This paper focusing on understanding the effect of Human Resource Management Practice to a quality of employee and further to the innovation in Small Medium Enterprise by using the SME performance as the measured variable. The effect can be analyzed by exploring both direct and indirect effect of Human Resource Management Practice to SME’s performance. The sample used in this research are SME that already run for more than 6 years with growing revenue. The result shows that in SME’s context in Indonesia, the quality of employee and innovation is directly affecting the SME’s performance while a good Human Resource Management Practice did not directly affect the performances. However, a good Human Resource Management Practices significantly affecting the Human Resource Quality and innovation. Thus, a good Human Resource Management Practice indirectly affecting Small Medium Enterprise performance in Indonesia. This paper developing a model to measure the effect of Human Resource Management Practice as an independent variable to Quality of employee and innovation related to organization’s performance. This paper also using path analysis to discover the direct and indirect effect of the independent variable to dependent variable. The model designed on this paper is proved to be passable since it successfully describing 61.9% of the phenomenon while only 38.1% is out of the context. The result of this research can enrich the studies relating to Human Resource Management Practice on SME, especially in Indonesia’s context.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Employee Quality,Human Resource Management Practice,Innovation,SME growth Drivers,SME Performance[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]