Competitive Advantage Throught Innovation, Human Capital and Knowledge Management

Abstract

The aim of this research was to examine the impact of Human capital and knowledge management on competitive advantage through innovation as mediating variable. This research has been conducted in Padang, Indonesia. Respondents are bank employees who have a structural position and work there more than 5 years. The data has been collected by using a survey with questionnaires. From the 135 questionnaires distributed, the proper questionnaires used for the data analysis were only 109 questionnaires. Based on the data analysis by using Partial Least Square (PLS smart 3.0), this study found that the direct relationship between knowledge management and innovation has a significant impact. Human capital has a significant direct effect on innovation. Innovation has a significant direct effect on competitive advantage. Human capital has a significant indirect effect on competitive advantage with innovation as a mediator. Knowledge management has a significant indirect effect on competitive advantage with innovation as mediator. Implications of the research results suggest and reinforce that knowledge management human capital, and innovation as a major determinant to create competitive advantage.