Human Resource Management, Innovation Capability, and MSME Performance in West Java: A Resource-Based View Perspective

Abstract

This study aims to analyze the relationship between human resource management, innovation capability, and MSME performance in West Java from the perspective of the Resource-Based View (RBV). Based on the RBV perspective, internal resources that are valuable, rare, difficult to imitate, and non-substitutable serve as key foundations for achieving competitive advantage and improving business performance. This study applies a quantitative approach using a survey method involving MSME actors in West Java. Data were collected through questionnaires measuring human resource management practices, innovation capability, and MSME performance. The data were analyzed to examine the empirical relationships among the variables. The findings indicate that human resource management plays an important role in supporting MSME performance through workforce management, training, competency development, and work systems that encourage productivity. In addition, innovation capability contributes to performance improvement by enabling MSMEs to develop new products, improve business processes, adapt to market changes, and capture business opportunities. These findings suggest that MSME performance is not determined solely by external factors, but also by internal capabilities in managing human resources and developing sustainable innovation. This study provides a theoretical contribution to the development of RBV studies in the MSME context and offers practical implications for business actors and policymakers in strengthening MSME competitiveness in West Java.