The Effect of Human Capital and Knowledge Management on Innovation and Organizational Performance
Published:
2026-11-04Downloads
Abstract
Public sector organizations face increasing pressure to improve performance through effective management of human resources, knowledge, and innovation. This study aims to analyze the effects of Human Capital on Knowledge Management, Innovation, and Organizational Performance, as well as the effects of Knowledge Management on Innovation and Organizational Performance and the effect of Innovation on Organizational Performance within the Ministry of Forestry of the Republic of Indonesia. A quantitative survey approach was employed using a five-point Likert-scale questionnaire distributed to 110 structural and functional employees selected through purposive sampling. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS 4. The results show that Human Capital positively affects Knowledge Management, Innovation, and Organizational Performance. Knowledge Management also positively affects Innovation and Organizational Performance, while Innovation positively affects Organizational Performance. These findings indicate that strengthening employee capabilities, effective knowledge management, and innovation are important for improving organizational performance in public-sector institutions.
Keywords:
Human Capital Innovation Knowledge Management Organizational PerformanceReferences
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