The Influence of Human Capital Elements on Performance: Evidence from West Java SMEs

Abstract

The purpose of this paper is to establish the Influence of Human Capital Elements on Performance: Evidence from West Java SMEs. A valid research instrument was utilized to conduct a survey on 250 SME and 897 respondents that are representative of 397 SMEs and 1,087 respondents. Correlation and regression analysis were conducted to ascertain the validity of the hypotheses. The result was established that human capital elements (employee educational level, experience and motivation) are associated with SME`s performance. Furthermore, human capital as a whole accounts for 55.9 percent of the variation in performance Indonesia`s SMEs. Finally, human capital was studied and by the virtual of the results, there are other factors that contribute to SME`s performance that were not part of this study.

Keywords: human capital, education, experience, motivation, performance