Competency Management of Human Capital: Supporting Role for Innovation Strategy and Firm Performance
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Abstract
This research aims to analyze the influence of competency management factors on innovation strategies and firm performance. The population was 1,039 innovative firms from government databases. Sampling without replacement were used to random 203 samples. The research instrument was the 5-rating scale questionnaire. Structural Equation Model (SEM) using LISREL was used to analyze the data. The finding revealed that structure equation model was congruent with empirical data. The result from path analysis revealed that competency management had a positive influencing innovation strategy and influencing firm performance. Innovation strategy also had a positive influencing firm performance. And competency management had positive influencing firm performance via innovation strategy. This paper provides the benefits to businesses by providing competency management model to promote innovation strategy and enhance firm performance. In academic perspective, the results of this research support AMO theory, theory of strategic fit between human resource management strategy and organizational strategy and resource-based view theory.
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