Human resource management in promoting innovation and organizational performance

  • Received November 28, 2019;
    Accepted January 24, 2020;
    Published February 12, 2020
  • Author(s)
    I Gede Riana
    ORCID ,
    Gede Suparna
    ORCID ,
    I Gusti Made Suwandana
    ORCID ,
    Sebastian Kot
    ORCID Researcher ID ,
    Ismi Rajiani
    ORCID Researcher ID
  • DOI
    http://dx.doi.org/10.21511/ppm.18(1).2020.10
  • Article Info
    Volume 18 2020, Issue #1, pp. 107-118
  • TO CITE АНОТАЦІЯ
  • Cited by
    17 articles
  • 2941 Views
  • 663 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Human resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.

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    • Figure 1. Analysis using WarpPLS
    • Table 1. Profile of the respondents
    • Table 2. Latent variable coefficients
    • Table 3. Correlations among latent variables
    • Table 4. The outer model’s measurement analysis
    • Table 5. Path coefficient direct effect and variance
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Problems and Perspectives in Management
Problems and Perspectives in Management