Innovation Capability Driven by Employee Capacity Building in Improving HR Performance
Abstract
This study aims to analyze the effect of employee capacity building on human resource performance both directly and indirectly through innovation capability as an intervening variable, as well as to examine the role of organizational culture as a moderating variable in the relationship among these variables. The type of research used is explanatory research with a quantitative approach. The population of this study includes all human resources at the Regional Office of Customs and Excise Central Java and Yogyakarta Special Region, consisting of both civil servants (ASN) and non-civil servants (non-ASN), totaling 203 employees. Based on the Slovin formula with a 5% margin of error, a sample of 135 respondents was obtained. The sampling technique used was non-probability sampling with a convenience sampling approach (Hair, 2021). Data were collected through literature studies and the distribution of questionnaires directly to respondents. The questionnaire was designed using a five-point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree). The analytical method employed was Structural Equation Modeling (SEM) using the Partial Least Square (PLS) approach to examine the relationships among variables simultaneously. The results of the study show that: (1) employee capacity building has a positive and significant effect on human resource performance; (2) employee capacity building has a positive and significant effect on innovation capability; (3) innovation capability has a positive and significant effect on human resource performance; (4) organizational culture does not moderate the relationship between employee capacity building and human resource performance; and (5) organizational culture moderates the relationship between innovation capability and human resource performance. These findings reinforce the concept that enhancing employee capacity through training, skill development, and continuous learning not only directly improves performance but also strengthens innovative capabilities that contribute to better work outcomes. Moreover, organizational culture plays an important role in reinforcing the impact of innovation on performance, although it does not significantly moderate the influence of capacity building on performance. This study provides practical implications for public sector organizations to strengthen adaptive training programs, build an innovative culture, and create a supportive work environment for sustainable human resource performance improvement.
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