The Impact of Human Capital Readiness on Business Performance : The Mediating Role of Innovation Capability

Pengaruh Ketersediaan Human Capital pada Kinerja Bisnis: Peran Mediator Kemampuan Inovasi

  • (1) * Linda Sutanto            Universitas Airlangga  

  • (2)  Bambang Tjahjadi            Universitas Airlangga  

  • (3)  Fiona Niska Dinda Nadia            Universitas Airlangga  

    (*) Corresponding Author


This study investigates the role of innovation capabilities in mediating the link between human capital readiness and business performance. This study's essential contribution is empirically examining the resource-based theory using a structural equation model. This study is a quantitative investigation at the explanatory level that employs structural equation modelling. In Indonesia, 258 owners or managers from MSME’s. The following are the findings: Human capital readiness impacts business performance. Second, innovation capability impact on business performance. Third, innovation capability mediate the relationship between human capital readiness and business performance. This study concludes the strategic roles of innovation capability in Indonesian MSMEs.


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Author Biographies

Linda Sutanto, Universitas Airlangga

Linda Sutanto is a master's student at the Postgraduate School, Universitas Airlangga, a practician, and a faculty member. Her primary research interests are organizational performance management and leadership.

Bambang Tjahjadi, Universitas Airlangga

Bambang Tjahjadi is a Professor at the Faculty of Economics and Business, Universitas Airlangga, for more than 30 years. His research explores the factors affecting organizational performance. He is particularly interested in diverse strategic management issues influencing firm value and performance. His work has appeared in the European Research Studies Journal, Asian Journal of Business and Accounting and International Business Management.

Fiona Niska Dinda Nadia, Universitas Airlangga

Fiona Niska Dinda Nadia is a lecturer at the Postgraduate School, Universitas Airlangga. Her current focus of research is on dynamic capabilities and organizational change.


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How to Cite
Linda Sutanto, Bambang Tjahjadi, & Fiona Niska Dinda Nadia. (2023). The Impact of Human Capital Readiness on Business Performance : The Mediating Role of Innovation Capability. Journal of Accounting Science, 7(2), 130-145.
Management Accounting