HUMAN CAPITAL MANAGEMENT MODEL ON SMALL ENTERPRISES PERFORMANCE IN RURAL AREAS OF WEST BANDUNG REGENCY, INDONESIA

Abstract:

SMEs as part of MSMEs face multiple challenges in accessing finance and other tangible asset limitations, and intangible assets as intellectual assets play a key role in achieving and sustaining business performance. Connected to This study aims to analyze the human capital management (HCM) model in relation to the performance of small enterprises, especially the food processing sector in West Bandung regency, Indonesia. Data that had been collected was analyzed with the ANP (Analytical Network Process) method. Experts or key informants involved regulators or the government, academics, business actors and MSME associations and were located in West Bandung Regency, Indonesia. The results of this study show that the construction and prioritization of the HCM model is intellectual (human) capital, structural capital, social capital, and finally customer capital, with a Kendall concordance coefficient (W) of 0.3766 and a p-value of showed it to be 0.0004. Meanwhile, the overall 14 priority elements were related to attitudes, work processes, product quality, Intra Social, Knowledge, and Relationships with customers, Intersocial, Skills, Image, Social Innovation, technology, customer loyalty, organizational innovation results, and another intelligence. This finding could be a priority reference to improve policies or strategies for Human Capital Management in small enterprises.