The Effect of Human Resource Competence, Entrepreneurship Characteristics, and Innovation on Small and Medium Enterprise Performance

Abstract

This study aims to determine the effects of human resource competence, entrepreneurship characteristics, and innovation on small and medium enterprise performance. This type of research is explanatory and uses a quantitative approach. The sample consists of 42 SMEs in Pekalongan, Indonesia. Data collection techniques used the survey method to distribute the questionnaires. Data analysis was performed using multiple linear regressions. The results show that human resource competence has a significant positive effect on SMEs performance. Entrepreneurship characteristics have a significantly positive effect on SMEs performance. Innovation has no significant positive effect on SMEs performance. Human resource competence, entrepreneurship characteristics, and innovation have significant positive effects on SMEs performance. The adjusted R square value is 0.698, showing that human resource competence, entrepreneurship characteristics, and innovation have an effect of 69.8% on SMEs performance, and the remaining 30.2% is influenced by other variables not included in this study. Other variables that can be added for future research are technology capability, entrepreneurial commitment, competitive advantage, and digital marketing.