Factor Analysis of Human Capital and Organizational Learning against Performance
Astuti Meflinda
[email protected]
Mahyarni
[email protected]
Hesty Wulandari
[email protected]
Management Department; Faculty of Economic and Social Sciences
State Islamic University Sultan Syarif Kasim Riau
Pekanbaru-Indonesia
ABSTRACT
Along with the changes occurring in today's global business environment, which triggers the increased
intensity of competition between universities, each of the universities need to improve the quality of their human
resources in competency and performance. This study was conducted at two State University in Riau Province;
UIN Suska Riau and Riau University, with the aim to determine the direct and indirect effects of human capital
variables, organizational learning, organizational competencies, and culture of innovation to organizational
performance. We use the Chairmen of UIN Suska Riau and Riau University study programs have been accredited
as the population. As the sample, there are 50 respondents were chosen by simple random sampling technique. In
analyzing the data used quantitative methods, using the Partial Least Square (PLS). From the data analysis, we
can conclude that on direct effect hypothesis testing, there is no significant relationship between human capital
variables on the performance of the organization. While organizational learning variable significantly and directly
influence the performance of the organization. Furthermore, the indirect effect hypothesis testing, human capital
variables affect the performance of the organization that mediated by the competence of the organization. Also,
human capital variables affect the performance of the organization that mediated culture of innovation as well as
organizational learning variables affect the performance of the organization that mediated the competence of
organizations and organizational learning variables affect the performance of the organization that mediated
culture of innovation.
Keywords: human capital, organizational learning, organizational competence, culture of innovation,
organizational performance
ABSTRAK
Seiring dengan perubahan yang terjadi dalam lingkungan bisnis global saat ini, turut memicu
meningkatnya intensitas persaingan antar perguruan tinggi, sehingga masing-masing perguruan tinggi
meningkatkan kualitas sumber daya manusianya yang mempunyai kompetensi dan berkinerja tinggi. Penelitian ini
dilakukan pada dua Universitas Negeri di Provinsi Riau yaitu UIN Suska Riau dan Universitas Riau, dengan
tujuan untuk mengetahui pengaruh langsung maupun tidak langsung variabel modal manusia, pembelajaran
organisasi, kompetensi organisasi, dan budaya inovasi terhadap kinerja organisasi. Populasi dalam penelitian ini
adalah Ketua Program Studi pada UIN Suska Riau dan Universitas Riau yang program studinya sudah
terakreditasi. Besarnya sampel yang diambil dalam penelitian ini adalah 50 responden dengan teknik pengambilan
sampel secara simple random sampling. Dalam menganalisis data digunakan metode kuantitatif, dengan
menggunakan Partial Least Square (PLS). Dari analisis yang dilakukan diperoleh hasil bahwa pengujian hipotesis
pengaruh langsung, tidak terdapat pengaruh yang signifikan antara variabel modal manusia terhadap kinerja
organisasi. Sedangkan variabel pembelajaran organisasi secara langsung berpengaruh signifikan terhadap
kinerja organisasi. Selanjutnya pengujian hipotesis pengaruh tidak langsung, variabel modal manusia
berpengaruh terhadap kinerja organisasi yang dimediasi kompetensi organisasi dan variabel modal manusia juga
berpengaruh terhadap kinerja organisasi yang dimediasi budaya inovasi. Begitu juga dengan variabel
pembelajaran organisasi berpengaruh terhadap kinerja organisasi yang dimediasi kompetensi organisasi dan
variabel pembelajaran organisasi berpengaruh terhadap kinerja organisasi yang dimediasi budaya inovasi.
Kata kunci : modal manusia, pembelajaran organisasi, kompetensi organisasi, budaya inovasi, kinerja organisasi.
INTRODUCTION
Human Resources, which is now often referred as human capital is an important and essential asset that has
contributed to the development and growth, as well as physical assets machinery and working capital (Stockely;
2003). Brilliant program or a sophisticated infrastructure will not provide significant benefits to the organization if
it is not supported by the availability of qualified human capital. As human beings, human capital has thoughts,
feelings, and behaviors underlying motivation, attitude, loyalty, understanding the role, commitment, and
satisfaction in the work.
Along with the increase of competition due to rapid technological and environment change in every aspect
of human life that every organization requires high competence human capital in order to provide excellent service
and value. It also occurs in Higher Education in the province of Riau. Global life today triggers the increased
intensity of competition among state universities both fellow college in Riau Province, other provinces in Indonesia
and abroad. For that matters, UIN Suska Riau and Riau University as two (2) existing public universities in Riau
Province, are expected to consistently and continuously being the center of the implementation and development of
higher education as well as the maintenance, enhancement and development of science, technology and / or art as a
scientific community that can improve the quality of life of society, nation and state.
Performance is defined as the effectiveness of the organization which includes the achievement of
organizational goals, efficiency taking into account the relationship between inputs and outputs necessary to
achieve the output, as well as the adaptations that reflect the organization's ability to adapt to environmental
changes (Honburg, et al; 1999). According Malcoml Baldrige (Baldrige Education Criteria for Performnce
Excellence Framework), in addition to college performance is influenced directly by human capital is also affected
by organizational learning. Although it is not directly determined by other factors such as students and
stakeholders, strategic planning, and leadership, the role of organizational culture that encourages innovation
cannot be ignored in maintaining and achieving success in Universities. Robbins (1996) suggested that the
organization is able to implement innovations if supported by organizational culture means innovative
organizations tend to have a similar culture is a culture that encourages innovation. Innovation culture performed
as a reflection of the needs and efforts of State Universities for adaptive to the changing demands that continue to
occur. Effective innovation will be able to improve the performance of Universities. To achieve success and
sustainable competitive advantage, the Universities in Riau province must have qualified human capital and high
performance by optimizing competence, implementing organizational learning and innovation culture that
consistently. Based on above, the problem can be formulated as follows:
1. Does the higher the human capital can improve the performance of the organization?
2. Does the higher organizational learning can improve organizational performance?
3. Does the higher the human capital can improve organizational performance by improving the competence of the
organization?
4. Does the higher the human capital can improve organizational performance through improving the innovation
culture?
5. Does the higher organizational learning can improve organizational performance by improving the competence
of the organization?
6. Does the higher organizational learning can improve organizational performance through improving the
innovation culture?
LITERATURE REVIEW
Organizational Performance
Ventrakaman and Ramanujam (1986) describe the performance as a reflection of the achievements of the
company
that
can
be
used
as
the
achievements
of
the
various
activities
undertaken.
Furthermore, with reference to the opinion of Honburg, et al (1999), so in this study, is defined as the effectiveness
of the organization's performance which includes the achievement of organizational goals, efficiency taking into
account the relationship between inputs and outputs necessary to achieve the output, as well as the adaptation that
reflects the ability of the organization to adapt to environmental changes. We use 15 standards by Ban-PT as the
Dimensions of organizational performance in Universities in the province of Riau: 1) leadership, 2) student, 3)
human resources, 4) curriculum, 5) infrastructure and facilities, 6) financing, 7) governance (governance), 8).
management system, 9) learning system, 10) academic atmosphere, 11) system information, 12) internal quality
assurance system, 13) graduates, 14), research and community service, 15) the study program.
Human Capital
According Schermerhon (2005: 33), human capital is defined as the economic value of human resources
associated with the skills, knowledge, ideas, innovation, energy and commitment. Human capital in this study
refers to the opinion of Stockely (2003), which explains that human capital in organizations and businesses is an
important asset and beresensi, has contributed to the development and growth, as well as physical assets of
machinery and working capital. Attitudes, skills, and abilities humans have contributed to productivity and
organizational performance. Spending on training, development, education, and support is an investment not an
expense. Comprehensive human capital include: (Ross et al., (1997) in Ancok (2002)): 1) Intellectual Capital
(intelectual capital), 2) Capital emotional (emotional capital), 3) social capital (social capital), 4) Capital grit
(adversity capital), and 5) Capital moral (morality capital)
Organization Learning
Garvin (2000: 11) defines an Organization Learning as a membership organization to create, acquire,
interpret, transfer and sharing of knowledge, which is aimed at modifying its behavior to describe the knowledge
and new insights. Furthermore, Senge (1990: 2) argues that organizational learning has a strong orientation on
human resources, stating "people continually expand Reviews their capacity to create the results they desire, where
new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are
continually learning how to learn together. That people continually expand their capacity to create the results
desired, through new patterns and the development of the mind, where collective aspiration liberated, and people
continue to learn how to work together. There are six (6) dimensions of organizational learning developed by
Senge (1990: 35) and Marquardt (1996: 30), namely: 1) The system of thought, 2) mental model, 3) personal skills,
4) Cooperation Team, 5) Expertise divide a shared vision, and 6) Dialogue
Organizational Competence
Teece et al. (1997) see the resource as "company-specific assets that are difficult, that if possible, cannot be
duplicated, where competence resulting from the integration of specific assets of the company." Furthermore,
Barney (1991), which presents a more concrete structure and comprehensive to identify the importance of
competencies to maintain sustainable competitive advantage that is rare, worth (value), not easily imitated, and not
easily replaced. The dimensions of organizational competences in this research refer to the quality of the
implementation of the Tri Dharma College (Law No. 20 of 2003) include: 1) The quality of education and
teaching, 2) The quality of research, and 3) Service to the community.
Culture of Innovation
Robbins (1998; 248) defines organizational culture (organizational culture) as a system of shared meaning
held by members that distinguishes the organization with other organizations. A culture of innovation in this study
refers to the opinion of Boyton and Holer (1963) which is a strategic component of the organization in response to
the changes. As for the cultural dimension of innovation, integration of the concept of organizational culture
(Danison, 1990, Damanpour & Evan (1990)), namely 1) the involvement of innovation (innovation involvement),
2) the consistency of innovation (innovation consistency), 3) Adaptation of innovation (innovation adaptability)
and 4) The mission of innovation (innovation mission)
Hypothesis
Stockely (2003), explains that the human capital in organizations and businesses is an important asset and
essential, which has contributed to the development and growth, as well as physical assets of machinery and
working capital. H-1 states that human capital variables significantly influence the variable performance of the
organization, in other words the higher the human capital will improve organizational performance. Past research
has shown that human capital variables have a significant effect on performance (Stiles and Kulvisaechana 2004,
Hansson, et al., 2004, Ongkorahardjo, 2008). Further variables of organizational learning is people continually
expand their capacity to create the results desired, through new patterns and the development of the mind, where
collective aspiration liberated, and people continue to learn how to work together, with H-2 is variable
organizational learning significantly influence variables the performance of the organization, in other words the
higher the organizational learning can improve organizational performance. Past research has shown that
organizational learning significantly influence organizational performance variables (Zong Dai, et al., 2005; Ismail
and Abidin, 2008; and Hons, et al., 2010). H-3 is human capital variables significantly influence organizational
performance by improving the competence of the organization, meaning that the higher human capital can improve
organizational performance by improving the competence of the organization, organizational competence is
defined as a resource that generates the competence to be rare, worth (value), not easily imitated, and not easily
replaced. H-4 is human capital variables significantly influence organizational performance through improving the
culture of innovation, in other words the higher the human capital can improve organizational performance through
improving the innovation culture. H-5 is an Organization Learning variables significantly influence organizational
performance by improving the competence of the organization, in other words the higher the organizational
learning can improve organizational performance by improving the competence of the organization. And H-6 is
organizational learning variables significantly influence organizational performance through improving the culture
of innovation, in other words the higher the organizational learning can improve organizational performance
through improving the innovation culture, a culture of innovation is defined as a strategic component of the
organization in response to the changes.
RESEARCH METHODS
This research is located in Riau Province on 2 (two) Universities are UIN Suska Riau and Riau University.
The population in this study is the whole head of accredited study program at those universities. The population of
this research is 91 head of study programs consisting of 44 UIN Suska Riau head of study program and 47 the head
of study program at the University of Riau. The samples in this research were 50 respondents, using simple random
sampling method. The data analysis method used is called variance-based SEM Partial Least Square (PLS).
RESULTS
Structural Model Test of PLS
The model structure resulted on this PLS test is as follow:
Pict 1.1. Model Output PLS
While the data interpretation from PLS outputs are described on the table follows:
Table 2. Path Coefficients between variables
Original Sample (O)
t Statistics
(|O/STERR|)
Human Capital (X1) -> Organization Performance (Y)
0,110745
0,669424
Organization Learning (X2) -> Organization Performance (Y)
0,360569
2,994960
Organization Competences (X3) -> Organization Performance (Y)
0,114718
0,881177
Innovation Culture (X4) -> Organization Performance (Y)
0,285087
2,014001
Human Capital (X1) -> Organization Competences (X3)
0,309751
2,168391
Human Capital (X1) -> Innovation Culture (X4)
0,337488
2,317152
Organization Learning (X2) -> Organization Competences (X3)
0,342248
2,563490
Variabel
Organization Learning (X2) -> Innovation Culture (X4)
0,460863
2,922686
From the figures and tables above it can be seen the results of testing the structural model by looking at the
influence between the following variables:
Direct Impact
1. Effect of human capital variables to variable organizational performance
From the above table it is known that the value of t (statistic) of 0.669 is smaller than t table of 2.048. It means
that there is no significant relationship between the variables of human capital to variable organizational
performance, in other words the higher the human capital cannot improve the performance of the organization at
the Universities in Riau Province.
2. Effect
of
organizational
learning
variable
to
variable
organizational
performance
From the above table it is known that the value of t (statistics) amounted to 2.994960 greater than t table of
2.048, means that a significant difference between organizational learning variable to variable organizational
performance, in other words the higher the Organization Learning will be able to improve the performance of
the organization at Universities in Riau Province.
Indirect Influence
1. The effect of human capital variables on the performance of the organization that mediated the competence of
the organization.
From the above table it is known that the value of t (statistic) of 2.168 is greater than t table of 2.048, meaning
that there is a significant relationship between human capital variables on the performance of the organization
that mediated the competence of the organization, in other words the higher the human capital will improve
organizational performance by improving the competence of the organization at the Universities in Riau
Province. Previous research showed that human capital has no direct effect on the performance of the
organization, but is mediated by organizational competence (Toole and Czammitzki, 2007; Madison, et al.,
2009; Kamukama, et al., 2010).
2. Influence of human capital variables on the performance of the organization that mediated culture of innovation.
From the above table it is known that the value of t (statistic) of 2.317 is greater than t table of 2.048, meaning
that there is a significant relationship between human capital variables on the performance of the organization
that mediated culture of innovation, in other words the higher the human capital will improve organizational
performance through improving the innovation culture at Universities in Riau Province. Previous research
showed that human capital has no direct effect on the performance of the organization, but mediated by
innovation (Dakhli and Clercq, 2003; Lopez, 2005; Popescu and Diaconu, 2008 and Marimuthu, et al., 2009).
3. Effect of organizational learning variables on the performance of the organization that mediated the competence
of the organization.
From the above table it is known that the value of t (statistic) of 2.563 is greater than t table of 2.048, means that
a significant difference between the variables of organizational learning on organizational performance
mediated the competence of the organization, in other words the higher the organizational learning will improve
organizational performance by improving the competence of the organization at the Universities in Riau
Province. Previous research has demonstrated that organizational performance can be improved by Organization
Learning mediated by organizational competence (Wang and Lo, 2003; Invalid, 2007; Bustinza, et al., 2010;
Hidayat, 2008).
4. Effect of variable organizational learning on organizational performance mediated culture of innovation.
From the above table it is known that the value of t (statistic) of 2.923 is greater than t table of 2.048, means that
a significant difference between the variables of organizational learning on organizational performance
mediated culture of innovation, in other words the higher the organizational learning will improve
organizational performance through improving the innovation culture at Universities in Riau Province. Previous
research showed that a culture of innovation variables have a significant effect on the performance of the
organization (Sukirno, 1999; Said, 2002; Correa, et al., 2007, Lee, et al., 2008).
DISCUSSION
Organizational Performance
Honburg, et. all (1999), suggests the performance of the organization as effectiveness which includes the
achievement of organizational goals, efficiency taking into account the relationship between inputs and outputs
necessary to achieve the output, as well as the adaptations that reflect the organization's ability to adapt to
environmental changes. In this case the dimensions of organizational performance in Universities in the province
of Riau using 15 standard used BAN-PT, namely: i) leadership, 2) student, 3) human resources, 4) curriculum, 5)
infrastructure and facilities, 6) financing, 7) governance (governance), 8) management system, 9) learning system,
10) academic atmosphere, 11) system information, 12) internal quality assurance system, 13) graduates, 14),
research and community service, 15 ) study program,
Based on the regulation of Dikti No. 470 / D / T / l996 that the accreditation status of the university is a
reflection of the performance of universities in question and describe the quality, efficiency and relevance of the
courses held. To implement and achieve accreditation with good results required cooperation among academics in
Universities. In quantitative terms, the result of the percentage distribution of respondents to variable
organizational performance of 77.23% is included in the category agreed. This means that the process of leadership
in running the activities in the program of study is already well underway, in which the performance appraisal
process that is practiced fairly and accurately Studies Program. Applicable curriculums are in accordance with the
needs of the community and as well as Research and Services generated by this study program is in conformity
with the provisions.
Test of Structural Model of the PLS obtained results either directly or indirectly hypothesis influence the
dependent variable on the independent variable. Directly human capital variables did not affect the organization's
performance variable with a value of 0.669 t less than t table of 2.048. But indirectly, human capital variables
affect the performance of the organization that mediated the competence of the organization, in other words the
higher the human capital will improve organizational performance through improving the competence of the
organization at the Universities in Riau Province, with t count equal to 2.168 greater than t table amounted to
2,048. Likewise if mediated by cultural variables of innovation. Indirectly, there is a significant relationship
between human capital variables on the performance of the organization that mediated culture of innovation, in
other words the higher the human capital will improve organizational performance through improving the
innovation culture at Universities in Riau Province, with t count equal to 2.317 greater of t table of 2.048.
Furthermore, from structural Model Testing in the PLS, is directly a significant difference between
organizational learning variable to variable organizational performance, in other words the higher the learning
organization will be able to improve the performance of the organization at the Universities in Riau Province, with
a value of 2,995 t more greater than t table of 2.048. Likewise indirectly, a significant difference between the
variables of organizational learning on organizational performance mediated the competence of the organization,
with a value of 2.563 t greater than t table of 2.048. And to variable culture of innovation, indirectly there is
significant influence between the variables of organizational learning on organizational performance mediated
culture of innovation, the t value of 2.923 greater than t table of 2.048.
Human capital
Human resources (HR) are often referred to as human capital is a very important element in the
achievement of an organization. Emitter welcome the era of globalization and the information age, every nation
requires human capital that has the advantage of excellent, the man who has the qualities in addition to master
science and technology also need to have a mental attitude and soft skills in accordance with their competence. A
wide range of expertise, skills, and the opportunity must be procured to the human capital within its capabilities.
With good human capital, the organization has the people with the right leadership, knowing what will be done to
all the information received and the competencies required for organizational success.
Stockely (2003), explains that the human capital in organizations and businesses is an important and
essential asset which has contributed to the development and growth, as well as physical assets, machinery and
working capital. Attitudes, skills, and abilities humans have contributed to productivity and organizational
performance. Spending on training, development, education, and support is an investment not an expense.
Furthermore Russ et al., (1997) in Ancok (2002), suggests that comprehensive human capital include: intellectual
capital, emotional capital, social capital, capital grit and moral capital.
Testing Structural Model of the PLS obtained directly influence the results of human capital variables on
organizational performance variable with a value of 0.669 t less than t label at 2.048. This means that there is no
significant relationship between the variables of human capital to variable organizational performance, in other
words the higher the human capital cannot improve the performance of the organization at the Universities in Riau
Province.
These results contradict the theory that the higher the human capital will improve organizational
performance. As we know, human capital is the most valuable asset and an investment for the company, it takes
some effort to keep these assets by: 1) providing motivation, 2) provide appropriate rewards to performance
conducted 3) provides awards 4) seek funding to increase the knowledge and ability of professors to conduct
training and provide scholarships for continuing education. If seen from the results of respondents' answers to the
human capital variables, obtained the lowest score associated with reward corresponding to the performance
carried out, the lack of recognition given to the leadership of subordinates thereby reducing faculty and staff
motivation to excel. Likewise, the characteristics of the respondents, only 10 people (20%) have obtained doctoral
degree.
Learning Organization
Organizations that perform organizational learning are an organization which have expertise in creating,
taking, transfer the knowledge, and modify their behavior to reflect new knowledge and experience. It is hoped
members of these organizations is able to put himself in accordance with his capacity, so it can best contribute to
and create prosperity for the organization. According to Senge (1990: 2), the learning organization is one of the
skills that should be possessed oieh leader. In a learning organization, employers continue to provide opportunities
for every member of the organization to learn and because of the ability to learn will increase. Further Senge
(1990: 35) and Marquardt (1996: 30), using the six (6) dimensions of learning orgamsasi namely: systems thinking,
mental models, personal skills, teamwork, expertise divide a shared vision, and dialogue.
Testing Structural Model of the PLS obtained directly influence the results of organizational learning
variable to variable organizational performance with a value of 2,995 t greater than t table of 2.048. This means
that there is significant influence between the variables of organizational learning on organizational performance
variables, in other words the higher the learning organization will be able to improve the performance of the
organization at the Universities in Riau Province. This is in accordance with the opinion of Lopez ei al. (2005)
which states that organizational learning is a dynamic process in creating, retrieving, and integrating knowledge to
develop resources and capabilities in contributing to better organizational performance. With higher learning of the
organization, the organization's performance will also increase. If seen from the results of respondents' answers to
variable organizational learning by 83.03% of respondents stated that this study program provides the opportunity
for professors to participate in formal education. So the faculty has the ability to develop themselves in the
knowledge, insight and technology. Besides, the communication between the faculty and staff with leadership
study program has been well established, so that lecturers and employees are able to act in a coordinated manner
and innovative.
Organizational Competence
The development of the theory and empirical now prove that the organization that has competence will
yield better information about the needs and desires of its customers and also better in developing and marketing
products or services through a well-coordinated activity. Barney (1991), presents a concrete structure and
comprehensive Iebih to identify the importance of competencies to maintain sustainable competitive advantage that
is rare, worth (value), not easily imitated, and not easily replaced. In this case the dimensions of organizational
competence refers to the quality of the implementation of the Tri Dharma College (Law No. 20 of 2003) include:
the quality of education and teaching, quality of research, and community service. Testing Structural Model of the
PLS obtained results indirect influence of human capital variables on the performance of the organization that
mediated the competence of the organization with the t value of 2.168 is greater than t table of 2.048. This means
that there is a significant relationship between human capital variables on the performance of the organization that
mediated the competence of the organization, in other words the higher the human capital will improve
organizational performance through improving the competence of the organization at the Universities in Riau
Province. As proposed by Harnel and Heene (1994: 87), competence is a skill that enables companies achieve the
basics of customer benefits through the establishment, improvement, renewal and use of resources that led to the
sustainable competitive advantage. Thereby improving the competence of the organization will improve the
performance of the organization, which in turn generate a sustainable competitive advantage. If seen from the
results of respondents' answers to variable organizational competence 71.20% of respondents said membership of
the lecturers who teach in the Program have been tested so as to improve the quality of education and teaching in
this study program and generate competitive advantage. Model research and community service performed by the
lecturer has a uniqueness and distinctiveness. Besides, the involvement of Community Service Institution (LPM) in
ensuring the quality of lecturers in conducting education and instruction by issuing periodic reports on the
assessment Lecturers, can motivate lecturers to be better.
Furthermore, from the Structural Model Testing in the PLS also obtained indirect influence variable of
organizational learning on organizational performance mediated the competence of the organization, with a value
of 2.563 t greater than t table of 2.048. This means that there is significant influence between the variables of
organizational learning on organizational performance mediated the competence of the organization, in other words
the higher the organizational learning will improve organizational performance through improving the competence
of the organization at the Universities in Riau Province. Never and Slater (1990), suggests superior competence
will give the company the ability to generate and act on knowledge of competitors' actions and reactions that would
help build competitive advantage and achieve expected performance. Along with that goal, their organizational
learning should be able to increase the competence of the organization so that the organization can improve its
performance.
Culture of Innovation
The University as an institution of higher education must be prepared to face global challenges. To be able
to realize the graduates who can compete, higher education must be able to be globally minded institutions and has
an international standard data sources. For that we need a change of Mindset College into a mindset that following
the change, which is oriented towards creating a culture of innovation that is more dynamic, productive, and
competitive. One thing to realize it is a college culture of innovation that is able to support and prepare graduates to
respond to the challenges and fill the current era of globalization.
Boyton and Holer (1963), suggests that the culture of innovation is a strategic component of the
organization in response to the changes. Furthermore Danison, Damanpour & Evan (1990) presents a cultural
dimension innovation integration of the concept of organizational culture is the involvement of innovation,
consistency, innovation, adaptation innovation, and innovation mission. Testing Model of the PLS obtained results
that indirect influence of human capital variables on organizational performance mediated culture of innovation
with a value of 2,317 t greater than t table of 2.048. This means that there is a significant relationship between
human capital variables on the performance of the organization that mediated culture of innovation, in other words
the higher the human capital will improve organizational performance through improving the innovation culture at
Universities in Riau Province. It required the ability to remain consistently on innovation efforts that require a lot
of attention.
As noted Drucker (1993), a culture of innovation is an attempt to create change in the economy Emitter
organization or social potential. If seen from the results of respondents' answers to variable organizational
competencies 83% of respondents stated that the leadership of the course have a view far into the future so as to
have the desire to meet the needs of users with a good education, willing rnenerima and adapt to new ideas, and
communicate ideas effectively. Furthermore, from the Structural Model Testing in the PLS also obtained indirect
influence variable of organizational learning on organizational performance mediated culture of innovation with a
value of 2,923 t greater than t table of 2.048. This means that there is significant influence between the variables of
organizational learning on the performance of your organization that mediated culture of innovation, in other words
the higher the organizational learning will improve organizational performance through improving the innovation
culture at Universities in Riau Province. Jones (2004) suggested that innovation as a process to build a new
production system into operation so as to address the needs of customers and innovation can generate tremendous
success for the company.
CONCLUSION
1. Descriptive, of the five variables studied, obtained the highest results of variable human capital of 84.89%, a
variable 83.03% for organizational learning, innovation culture variables by 83% and variable organizational
performance by 77.23%. While the lowest is variable organizational competence of 71.20%.
2. Testing hypotheses direct influence of human capital to variable organizational performance result there is no
significant influence between the variables of human capital to variable organizational performance
3. Testing hypotheses direct influence between the variables of organizational learning on organizational
performance variables obtained results there is significant influence between the variables of organizational
learning on organizational performance variables.
4. Testing hypotheses indirect effect between human capital variables on the performance of the organization that
mediated the competence of the organization obtained the results of a significant difference between human
capital variables on the performance of the organization that mediated the competence of the organization.
5. Testing the hypothesis indirect effect between human capital variables on the performance of the organization
that mediated culture of innovation result there is significant influence between the variables of human capital
on the performance of the organization that mediated culture of innovation.
6. Testing hypotheses indirect influence between the variables of organizational learning on organizational
performance organizational competence mediated result there is significant influence between the variables of
organizational learning on organizational performance mediated organizational competence.
7. Testing the hypothesis indirect influence between the variables of organizational learning on organizational
performance mediated culture of innovation result there is significant influence between the variables of
organizational learning on organizational performance mediated culture of innovation
SUGGESTION
1. The results showed human capital is an asset and investment for universities, So they should increase human
capital through the provision of learning task for professors to continue their studies to PhD.
2. It is expected that the results of this research can be used as input to the college in evaluating higher education
strategy in the future so as to create maximum performance.
3. As a reference for future research.
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