The Influence of Competence on Employee Performance Moderated by Innovation: A Case Study at The Semarang Regency BKUD Office

Abstract

This study was conducted to evaluate the extent to which competence influences employee performance, with innovation positioned as a moderating variable, in the context of the Semarang Regency BKUD Office. Competence is defined as a combination of knowledge, skills, and attitudes that play a role in achieving optimal performance. Innovation is considered capable of strengthening the influence of competence by presenting new ideas in work implementation. This study adopted a quantitative approach through a survey method, with data collection conducted using questionnaires distributed to employees of the relevant agency. Data analysis was conducted using Structural Equation Modeling (SEM) techniques processed by SmartPLS version 4 software, to examine the direct influence and interactions between variables in the model. The findings indicate that competence has a positive and significant impact on employee performance. Innovation also contributes to improved performance. However, innovation does not function as a moderating variable in the relationship between competence and performance. This indicates that the form of innovation implemented, namely in the service system, is not yet on target. Increasing innovation should be focused on developing individual employee capacity, for example through training programs, rather than solely through service system updates.