Optimization of Human Resource Competencies Towards Business Performance and Organization Learning Capability as Moderating Variables
Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in the Indonesian economy, particularly within the fashion sector, which contributes significantly to Gross Domestic Product (GDP) and employment. This study aims to analyze the impact of Human Resource Competencies (HRC) on Business Performance (BP), with Organizational Learning Capability (OLC) serving as a moderating variable, within the context of fashion MSMEs in Semarang City. A quantitative approach was employed, using a survey of 100 fashion MSME owners in Semarang City selected through purposive sampling. Data were collected via questionnaires and analyzed using Partial Least Squares (PLS). The results indicate that Human Resource Competencies (HRC) have a significant positive effect on MSME Business Performance (BP), and that Organizational Learning Capability (OLC) significantly and positively moderates the relationship between HRC and BP. Enhancing Organizational Learning Capability (OLC) allows MSMEs to strengthen the link between HRC and BP, thereby improving their business performance. These findings underscore the importance of Human Resource Competencies (HRC) and Organizational Learning Capability (OLC) for MSMEs in maximizing their business potential.
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