Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)

The Effect of HRM Practices and Human Capital on Organizational Performance

A Literature Discussion From Indonesian MSME Perspective

Authors
Jonner Simarmata
Corresponding Author
Jonner Simarmata
Available Online 27 November 2020.
DOI
10.2991/aebmr.k.201126.088How to use a DOI?
Keywords
MSMEs, Organizational Performance, HRM practices, human capital
Abstract

HRM practices have a significant effect on organizational performance. If HRM practices are effective, organizational performance will improve. This applies not only to large organizations but also to small organizations. However, in the literature of management, it was stated that the relationship of HRM practices with organizational performance is not yet clear (Armstrong & Taylor, 2014). There is a missing link (Yang & Lin, 2009) or black box (Huselid, 1995) in this connection. Therefore, researchers need to think about mediating factors. In theory, human capital can mediate these relationships because human capital has links both with HRM practices and with organizational performance. Various studies have been conducted to prove this relationship. However, researchers focus more on large organizations. In the context of small organizations, especially in Indonesia, this kind of research is rarely done. As a result, the literature on HRM practices, human capital, and organizational performance in the context of small businesses, especially in Indonesia, is very rarely found. This paper aims to discuss the effect of HRM practices and human capital on organizational performance in the context of MSMEs in Indonesia in the hope of adding resources in this context.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
27 November 2020
ISBN
10.2991/aebmr.k.201126.088
ISSN
2352-5428
DOI
10.2991/aebmr.k.201126.088How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Jonner Simarmata
PY  - 2020
DA  - 2020/11/27
TI  - The Effect of HRM Practices and Human Capital on Organizational Performance
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 805
EP  - 811
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.088
DO  - 10.2991/aebmr.k.201126.088
ID  - Simarmata2020
ER  -