Investigating the Effect of Digital HRM and Digital Innovation and the SMEs Performance in Indonesia

Abstract

Purpose: This study aims to analyze the relationship between digital HRM and SMEs Performance, the relationship between digital innovation and SMEs Performance and analyze the relationship between digital HRM and digital innovation   Design/methodology/approach: This research method is a quantitative survey, research data obtained by distributing online questionnaires to 760 SMEs owners. Data analysis used a structural equation model (SEM) with SmartPLS 3.0 software. The stages of data analysis are validity, reliability and significance tests. The sampling technique used is simple random sampling. The questionnaire used in this study uses a Google form which will be distributed to respondents. This questionnaire measurement method uses a Likert scale of 5, namely Strongly Disagree (STS), (2) Disagree Answers (TS), (3) Neutral Answers (N), (4) Agree Answers (S), Strongly Agree (SS)   Findings: The results of this study showed that digital HRM has a positive and significant impact on SMEs Performance, digital innovation has a positive and significant impact on SMEs Performance, digital HRM has a positive and significant impact on digital innovation   Practical implications: The findings of this study can be used by SMEs owners to increase their performance by implementing digital HRM and digital innovation. Moreover, for academics, it can support new knowledge as well as supporting theories.   Original/value: A significant contribution to the SMEs performance, digital HRM has a positive and significant impact on SMEs Performance, digital innovation has a positive and significant impact on SMEs Performance, digital HRM has a positive and significant impact on digital innovation. This result strengthens the results of previous studies.