The Influence of Human Resource Practices on Organizational Innovation; mediated by Knowledge Management

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Bakti, Buyung Sarita, La Hatani, dan Jopang

Abstract

This study aims to analyze the influence of human resource practice on knowledge management, analyze the influence of human resource practice on organizational innovation, analyze the influence of knowledge management on organizational innovation and analyze the role of knowledge management in mediating the influence of human resource management practices on organizational innovation. The population in this study is all active managers of Village-Owned Enterprises in South Buton Regency, Southeast Sulawesi Province, Indonesia, totaling 60 institutions, with 157 employees. Data collection using questionnaires. The research data was analyzed using Smart PLS because the research design used a structural equation model. Research results; Human resource practices have a positive and significant effect on knowledge management, human resource practices have a positive and significant effect on organizational innovation, knowledge management has a positive and significant effect on organizational innovation, knowledge management is able to mediate the influence of human resource practices on organizational innovation. The findings in this study are a reference for the Regional Government of Buton Selatan Regency to implement human resource practices for Village-Owned Enterprises so that they can be managed professionally to create organizational innovations that support the independence and sustainability of Village Owned Enterprises which are the drivers of the village economy to increase income and community welfare.

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