Analyzing Business Performance from Human Capital and Social Capital with Competitive Advantage as Mediating Variable

Abstract

The development of technology, information, and the internet is growing rapidly and massively in various business sectors, including SMEs, which has created new changes. This situation certainly provides opportunities and challenges for every business actor. This study analyzes the effect of human capital, social capital, customer capital, and technological innovation on business performance. This study's research method includes library and field research design with a quantitative approach. Data collection techniques using observation, interviews, questionnaires, and documentation. This study used 180 samples of small and medium business actors with convenience sampling. The data analysis method used is Partial Least Square (PLS). Findings. The study's results found that human capital positively and significantly affects business performance. Then social capital has a positive and significant effect on business performance. The results of this study also confirm that the competitive advantage variable cannot mediate the relationship between human capital and business performance and that competitive advantage can mediate the relationship between social capital and business performance.