THE COMPETITIVE ADVANTAGE OF SMALL INDUSTRY OF BATIK WITH THE HUMAN CAPITAL AND ORGANIZATIONAL CULTURE Aam Amaningsih Jumhur
Universitas Negeri Jakarta
Abstract
The increasing number of production values due to an increase of batik exports to various countries as well as the national exports of batik would certainly help in generating foreign exchange. Batik industry is a culture and tradition based industry in which its raw materials is available in the country. In addition, it also has cultural value and helped absorb quite a lot of labor with owned some special skills. The aim of this study was to determine how the organizational culture variables intervened in the relationship between the human capital variable with competitive advantage variable, so that batik small industry entrepreneur would be able to formulate and choose the right strategy to win the competition by managing its human capital well. This study used primary data in the form of questionnaires distributed to 200 respondents. The data obtained from the questionnaire were analyzed using Classic Assumption Test, Multiple Linear Regression and hypothesis testing (f-test and t-test) with significance level of α= 5% by using SPSS version 21. The results of the study showed that based on the results of regression testing on human capital variable with the competitive advantage variable and the presence of organizational culture as intervening variable, it could be concluded that there was a significant relationship between the human capital and intervening variables (organizational culture) as well as with competitive advantage variable. This result showed that organizational culture variable was an intervening variable between human capital and competitive advantage variable in small industry batik Trusmi, Indonesia.
Keywords: Competitive Advantage, Human Capital, Organizational Culture, Small Industry Batik
