The Role of Organizational Innovation as a Mediator in the Influence of Human Resource Management Practices on Organizational Performance in Manufacturing Companies in East Java M. C. Sina Setyadi, Ambar Woro Hastuti
University of Merdeka Malang, Indonesia
Abstract
This study aims to analyze the influence of human resource management practices on organizational innovation, analyze the influence of human resource management practices on organizational performance, analyze the influence of organizational innovation on organizational performance, and analyze the influence of human resource management practices on organizational performance through organizational innovation. The sample in this study involved 140 respondents. The sampling technique used in this research was simple random sampling. The analysis technique employed descriptive analysis and Structural Equation Modeling (SEM). The results of the analysis indicate that human resource management practices have an influence on organizational innovation. Human resource management practices have an influence on organizational performance. Organizational innovation has an influence on organizational performance. Organizational innovation serves as a mediator in the influence of human resource management practices on organizational performance. Implementing effective human resource management practices and promoting a culture of innovation within the organization can be an effective strategy to enhance organizational performance. In a competitive business environment, the engagement of high-quality human resources and the ability to innovate are key factors in achieving competitive advantage and sustainable growth.
Keywords: Human Resource Management Practices, Organizational Innovation, Organizational Performance.
Topic: Digital Economic Transformations Post Covid-19 Pandemic
