IMPLEMENTATION OF HUMAN RESOURCE MANAGEMENT TO SUPPORT SUSTAINABILITY PERFORMANCE OF SME’S IN FOUR REGIONS OF INDONESIA

• Main Author: Favian Putra Budiman, Iqbal
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/55064
• Institution: Institut Teknologi Bandung

Small and medium enterprises (SMEs) are widely acknowledged to have a positive impact towards the local, regional, and national economic development of a country. In Indonesia, SMEs employ 97 percent of the workforce and contribute around 63 percent of the total GDP. In terms of GDP and growth, the craft and IT industries has contributed significantly more compared to other industries. Unfortunately, due to a competitive market climate, 78 percent of SMEs in Indonesia face a barrier in optimizing their businesses. Many researchers examine barriers that influenced the growth of SMEs, which include but are not limited to lack of good human resources, economic factors, management capability, raw materials and natural disasters. This is evidenced in most emerging countries, human resource management (HRM) studies have an important impact on the sustainable performance of SMEs in a dynamic environment. HRM prepares company talents to be able to futher develop their companies in order to keep competing in the market. This study aims to explore how SME owners manage their businesses, how they recognize the importance of people inside the organization, and how to manage changes towards the organization itself. This study included 10 SMEs from Yogyakarta and Central Java, East Java, West Java, and Jakarta. The study employed exploratory research with qualitative analysis, as well as a multiple case study. This multiple case study investigates the within and cross case analysis approach to understanding the phenomenon's nature. This study's findings are that SMEs lack information sources in gaining and managing their own capital, uses an informal strategy approach, focuses on daily activities, has poor management skills, and the owner is not prepared to respond to external changes. As a result, this study suggested using a talent management system, an ADKAR change model framework