The Effect of Human Capital on Batik SMEs Innovation: The Mediating Role of Adaptive Creativity

Authors

  • Rini Handayani Atma Bhakti Institute of Economics

DOI:

https://doi.org/10.21512/bbr.v11i2.6178

Keywords:

human capital, firm innovation, adaptive creativity

Abstract

The research aimed to examine the role of human capital and adaptive creativity in firm innovation. Using quantitative descriptive methods, the research analyzed 166 batik Small and Medium-Sized Enterprises (SMEs) in Surakarta and Yogyakarta. The sampling technique used was probability sampling methods. The questionnaire as the instrument was sent to the owners of batik SMEs by mail. The data analysis used Structural Equation Modeling (SEM). The results of hypothesis testing show that tacit knowledge and explicit knowledge influence adaptive creativity which affects firm innovation. Individuals who can adapt to tacit and explicit knowledge have good creativity. So, in the end, they can support innovations in the firm. The research findings also strengthen the mediating role of adaptive creativity in the influence of human capital and firm innovation.

Dimensions

Plum Analytics

References

Al Haraisa, Y. E. (2016). The impact of human resource management practices on innovation performance: An empirical study on Jordanian private hospitals. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(4), 185-195.

Almahamid, S., McAdams, A. C., & Kalaldeh, T. (2010). The relationships among organizational knowledge sharing practices, employees’ learning commitments, employees’ adaptability, and employees’ job satisfaction: An empirical investigation of the listed manufacturing companies in Jordan. Interdisciplinary Journal of Information, Knowledge & Management, 5, 327-356.

Alnachef, T. H., & Alhajjar, A. A. (2017). Effect of human capital on organizational performance: A literature review. International Journal of Science and Research (IJSR), 6(8), 2319-7064.

Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, 36, 157-183.

Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-thescience review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297-1333.

Ardiana, I. D. K. R., Brahmayanti, I. A., & Subaedi, S. (2010). Kompetensi SDM UKM dan pengaruhnya terhadap kinerja UKM di Surabaya. Jurnal Manajemen dan Kewirausahaan, 12(1), 42-55.

Auger, P., & Woodman, R. W. (2016). Creativity and intrinsic motivation: Exploring a complex relationship. The Journal of Applied Behavioral Science, 52(3), 342-366.

Boniface, O., & Groenewald, D. (2016). SMEs’ adaptability in the increasingly discontinuous business environment. Journal of Emerging Trends in Economics and Management Sciences, 7(4), 266-275.

Bratnicka, K., & Bratnicki, M. (2013). Linking two dimensions of organizational creativity to firm performance: The mediating role of corporate entrepreneurship and the moderating role of environment. Advances in Business-Related Scientific Research Journal, 4(2), 153-163.

Byukusenge, E., & Munene, J. C. (2017). Knowledge management and business performance: Does innovation matter? Cogent Business & Management, 4(1), 1-18.

Chełmecka, A. (2018). Study the relationship between creativity and knowledge. World Scientific News, 92(2), 198-210.

Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen Jr, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443.

Da Silva Marinho, E., González, M. O. A., Galvão, M. S., De Araújo, A. C. C., Rosa, M. S. C., & Pereira, J. R. (2017). Relationship between creativity and product innovation: A literature review. Product: Management & Development, 14(1), 32-37.

Dhanaraj, C., Lyles, M. A., Steensma, H. K., & Tihanyi, L. (2004). Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35(5), 428-442.

Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15-21.

Djampagau, H. R. D., Salim, U., Rofiaty, & Wijayanti, R. (2018). The relationship of human capital, innovation, and corporate performance (A study of small and medium rattan businesses in Palu City Central Sulawesi Province). In The 2018 International Conference of Organizational Innovation, KnE Social Sciences (pp. 453-463).

Do, B. R., Yeh, P. W., & Madsen, J. (2016). Exploring the relationship among human resource flexibility, organizational innovation and adaptability culture. Chinese Management Studies, 10(4), 657-674.

Dogan, E. (2017). A strategic approach to innovation. Journal of Management Marketing and Logistics, 4(3), 290-300.

Doran, J., & Ryan, G. (2017). The role of stimulating employees’ creativity and idea generation in encouraging innovation behaviour in Irish firms. The Irish Journal of Management, 36(1), 32-48.

Dostie, B. (2018). The impact of training on innovation. ILR Review, 71(1), 64-87.

Ershova, N., Yutkina, O., Pashkov, A., Ivanova, M., & Chistyakova, A. (2018). Influence of human capital on the level of innovation activity of an enterprise. In MATEC Web of Conferences (Vol. 239, p. 04011).

Farooq, R. (2019). Developing a conceptual framework of knowledge management. International Journal of Innovation Science, 11(1), 139-160.

Fischer, C., Malycha, C. P., & Schafmann, E. (2019). The influence of intrinsic motivation and synergistic extrinsic motivators on creativity and innovation. Frontiers in Psychology, 10. 1-15.

Gunasekera, V. S., & Chong, S. C. (2018). Knowledge management critical success factors and project management performance outcomes in major construction organisations in Sri Lanka. VINE Journal of Information and Knowledge Management Systems, 48(4), 537-558.

Gunjal, B. (2019). Knowledge management: Why do we need it for corporates. Malaysian Journal of Library & Information Science, 10(2), 37-50.

Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate data analysis (8th ed.). CENGAGE.

Huda, N., Munandar, A., & Syamsinirwani, S. (2018). The effect of entrepreneurship competency and adaptability of business environment to financial performance of small an medium business units in Bima City. Jurnal Terapan Manajemen dan Bisnis, 4(2), 131-137.

Hung, Y. T., Cant, M. C., & Wiid, J. A. (2016). The importance of human resources management for small businesses in South Africa. Problems and Perspectives in Management, 14(3-1), 232-238.

Karaevli, A., & Hall, D. T. T. (2006). How career variety promotes the adaptability of managers: A theoretical model. Journal of Vocational Behavior, 69(3), 359-373.

Kell, D. B., & Lurie-Luke, E. (2015). The virtue of innovation: Innovation through the lenses of biological evolution. Journal of The Royal Society Interface, 12(103), 1-15.

Khalique, M., Nassir Shaari, J. A., Isa, A. H. B. M., & Ageel, A. (2011). Role of intellectual capital on the organizational performance of electrical and electronic SMEs in Pakistan. International Journal of Business and Management, 6(9), 253-257.

Klimczuk-Kochańska, M. (2017). Importance of creativity of employees in adaptation of food companies to innovative trends in the world. Human Resources Management & Ergonomics, 11(1), 50-64.

Koller, T., & Ramón, M. (2016). Exploring adaptability in organizations: Where adaptive advantage comes from and what it is based upon. Journal of Organizational Change Management, 29(6), 837-854.

Lin, H. F. (2007). Knowledge sharing and firm innovation capability: An empirical study. International Journal of Manpower, 28(3/4), 315-332.

Malik, M. A. R., Choi, J. N., & Butt, A. N. (2019). Distinct effects of intrinsic motivation and extrinsic rewards on radical and incremental creativity: The moderating role of goal orientations. Journal of Organizational Behavior, 40(9-10), 1013-1026.

Mannucci, P. V., & Yong, K. (2018). The differential impact of knowledge depth and knowledge breadth on creativity over individual careers. Academy of Management Journal, 61(5), 1741-1763.

McGuirk, H., Lenihan, H., & Hart, M. (2015). Measuring the impact of innovative human capital on small firms’ propensity to innovate. Research Policy, 44(4), 965-976.

Mohajan, H. (2017). Tacit knowledge for the development of organizations. ABC Journal of Advanced Research, 6(1), 17-24.

Munoz, J. M., Welsh, D. H., Chan, S. H., & Raven, P. V. (2015). Microenterprises in Malaysia: A preliminary study of the factors for management success. International Entrepreneurship and Management Journal, 11(3), 673-694.

Muñoz-Pascual, L., & Galende, J. (2017). The impact of knowledge and motivation management on creativity: Employees of innovative Spanish companies. Employee Relations, 39(5), 732-752.

Nasuredin, J., Halipah, A., & Shamsudin, A. S. (2016). Entrepreneurial competency and SMEs performance in Malaysia: Dynamic capabilities as mediator. International Journal of Research, 3(14), 4759-4770.

Nawaz, M. S., Hassan, M., & Shaukat, S. (2014). Impact of knowledge management practices on firm performance: Testing the mediation role of innovation in the manufacturing sector of Pakistan. Pakistan Journal of Commerce and Social Sciences (PJCSS), 8(1), 99-111.

Nuryakin. (2018). Competitive advantage and product innovation: Key success of Batik SMEs marketing performance in Indonesia. Academy of Strategic Management Journal, 17(2), 1-17.

Özer, G., & Çam, İ. (2017). The moderating effect of human capital on innovation capital and firm market value relationship: An application on BIST. Uluslararası Yönetim İktisat ve İşletme Dergisi, 13(5), 512-522.

Pasban, M., & Nojedeh, S. H. (2016). A review of the role of human capital in the organization. Procedia-Social and Behavioral Sciences, 230, 249-253.

Pulgarín-Molina, S. A., & Guerrero, N. A. (2017). Innovation and competitiveness: Organizational culture and business model. Dimensión Empresarial, 15(2), 15-25.

Rahimi, E., Rostami, N., Shad, F., & Vafaei, V. (2017). The importance of knowledge management on innovation. Applied Mathematics in Engineering, Management and Technology, 5(1), 68-73.

Rambeli, S. A., & Yunus, A. M. (2018). The knowledge management practices at PTAR in promoting creativity and innovation among staff. International Journal of Academic Research in Business and Social Sciences, 8(9), 364-374.

Rao, J., & Weintraub, J. R. (2013). How innovative is your company’s culture? MIT Sloan Management Review, 54(3), 29-37.

Rehman, S., Shahrukh, H. M., Virk, A. M., & Butt, M. (2019). Pay for Performance (PFP) increasing creativity through intrinsic motivation. International Journal of Research in Business and Social Science, 8(2), 74-90.

Richard, V., Lebeau, J. C., Becker, F., Inglis, E. R., & Tenenbaum, G. (2018). Do more creative people adapt better? An investigation into the association between creativity and adaptation. Psychology of Sport and Exercise, 38(September), 80-89.

Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of Business Venturing, 30(5), 714-731.

Seidler‐de Alwis, R., & Hartmann, E. (2008). The use of tacit knowledge within innovative companies: Knowledge management in innovative enterprises. Journal of Knowledge Management, 12(1), 133-147.

Sembiring, R. (2016). Impact of human resources’ knowledge and skills on SMEs’ in Medan City, Indonesia. International Journal of Management, Economics and Social Sciences, 5(3), 95-104.

Semrád, J., & Škrabal, M. (2017). The influence of the social enviroment on the creative activities of secondary school students. Littera Scripta, 1, 117-130.

Smit, J. (2015). The innovation value chain and adaptability of organizations. Journal of International Technology and Information Management, 24(3), 57-74.

Smith, M. B., & Webster, B. D. (2018). Narcissus the innovator? The relationship between grandiose narcissism, innovation, and adaptability. Personality and Individual Differences, 121(January), 67-73.

Sözbilir, F. (2018). The interaction between social capital, creativity and efficiency in organizations. Thinking Skills and Creativity, 27(March), 92-100.

Szobiová, E. (2015). Creativity in organizational environment. Acta Technologica Dubnicae, 5(2), 69-79.

UNCTAD. (2014). World Investment Report 2014: Investing in the SDGs: An action plan. Switzerland: United Nations Publication.

Valmohammadi, C., Sofiyabadi, J., & Kolahi, B. (2019). How do knowledge management practices affect sustainable balanced performance? Mediating role of innovation practices. Sustainability, 11(18), 1-23.

Van Uden, A., Knoben, J., & Vermeulen, P. (2014). Human capital and innovation in developing countries: A firm level study. Nijmegen Institute for Management Research.

Zaky, A. H. M., & Soliman, M. (2017). The effect of knowledge management critical success factors on knowledge management effectiveness and performance: An empirical research in Egyptian banking sector. The Business and Management Review, 9(2), 201-211.

Zhang, Y., Khan, U., Lee, S., & Salik, M. (2019). The influence of management innovation and technological innovation on organization performance. A mediating role of sustainability. Sustainability, 11(2), 1-21.

Zhavoronkova, G., Zavalko, K., & Zhavoronkov, V. (2018). Knowledge, creativity and innovation in knowledge society formation. Machines. Technologies. Materials, 12(9), 367-370.

Zia, S., & Shafiq, M. (2017). Innovation and knowledge management: A literature review and research framework. Journal of Quality and Technology Management, 13(1), 99-116.

Downloads

Published

2020-07-31
Abstract 712  .
PDF downloaded 456  .