Effect Of Human Capital And Competitive Strategies Against The Financial Performance Of Small And Medium Enterprises

Enni Savitri dan Almasdi Syahza:

The purpose of this study is to analyze the effect of human capital on financial performance, the effect of human capital on competitive strategies and the influence of competitive strategies on financial performance. The samples consists of 68 SMEs managers in Province of Riau engaging in the manufacturing sector. The results using Path Analysis show that human capital have an effect on financial performance and on competitive strategies. Competitive strategies has an effect on financial performance. Human capital is important for choosing the right competitive strategy. The selection of the right competitive strategy improves financial performance. The selection of the right competitive strategy is necessary in the creation of strategies and of varied products. Improved financial performance is reflected by the growth of industrial assets and when SMEs focused on certain areas.

Citation:  Savitri, E. and Syahza, A., (2019). Effect Of Human Capital And Competitive Strategies Against The Financial Performance Of Small And Medium Enterprises, International Journal of Scientific & Technology Research, Volume 8, Issue 04. Page 86-92.