Increased Competitiveness through Human Capital and Financial Performance (Case Study on Wood Craft SMEs in Badung Regency)

One of the factors that influence the performance of SMEs is not yet

optimal management of human resources. The role of human capital is not only

influences financial performance but also impacts

sustainability and competitiveness. This study aims to test and

analyze the role of human capital in improving financial performance and

competitive advantage of UKM Wood Crafts in Badung Regency.

This research uses quantitative design through dissemination

questionnaire to the manager of UKM Wood Crafts in Badung Regency. Sample

a total of 43 SMEs using proportional sampling

then analyzed with SmartPLS 3.0 software. The unit of analysis is the manager

and owner. The results of the study are expected to make a theoretical contribution and

practical especially the organization's efforts in maintaining the stability of its financial performance

competitive and superior, sustainable and build competitive advantage.

The analysis shows that human capital has a positive effect

significant effect on financial performance, human capital and a positive effect

significant to competitive advantage, financial performance has a positive effect

and significant to competitive advantage, and financial performance is not

mediate human capital relations and competitive advantage.

Keywords: Human Capital, Financial Performance, and Competitive Advantage