The Influence of Competence and Talent Management on Employee Performance in SMEs in Cimahi: An Empirical Analysis
Article Sidebar
Main Article Content
Abstract
This study aims to investigate the impact of competencies and talent management on employee performance in Micro, Small, and Medium Enterprises (MSMEs) in Cimahi City, highlighting the urgency of enhancing employee performance for organizational sustainability and growth. An explanatory survey method with a verificative approach was employed, involving a sample of 89 employees from a population of 117 MSMEs, selected using the Krejcie and Morgan table. Data analysis was conducted through multiple regression using SPSS 25 to explore the relationships between competencies, talent management, and employee performance. The findings reveal that both competencies and talent management positively and significantly affect employee performance, with a 0.421 unit increase in performance for each unit increase in competencies and a 0.408 unit increase for talent management. The urgency of this research lies in its potential to improve employee performance through effective competencies and talent management, helping MSMEs overcome challenges, contribute to local economic growth, and provide a foundation for policies that support MSME development, thereby promoting sustainability and job creation. This study underscores the importance of implementing robust competencies and talent management strategies to achieve optimal and sustainable performance in MSMEs.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
BPS, “Statistik Pertumbuhan Ekonomi Indonesia Triwulan IV-2020,” BPS, 2021.
S. A. Nurcahyo, N. L. Ramadhani, and S. I. Isnawati, “The Role of Strategic Human Resource Management to Improve the Sustainable Fashion Industry in the Start-Up Perspective of Fashion MSMEs,” TEKNOBUGA J. Teknol. Busana dan Boga, vol. 12, no. 2, pp. 177–186, 2024.
A. Martins, M. C. Branco, and P. N. Melo, “Sustainability in Small and MediumSized Enterprises : A Systematic Literature Review and Future Research Agenda,” pp. 1–26, 2022.
S. Piwowar and Katarzyna, “Human resources development as an element of sustainable HRM – with the focus on production engineers,” J. Clean. Prod, vol. 278, p. 124008, 2021, doi: 10.1016/j.jclepro.2020.124008.
P. Bah, Z. Sun, and U. Hange, “Effectiveness of Organizational Change through Employee Involvement : Evidence from Telecommunications and Refinery Companies,” 2024.
H. Heenkenda, F. Xu, K. Kulathunga, and W. A. R. Senevirathne, “The Role of Innovation Capability in Enhancing Sustainability in SMEs : An Emerging Economy Perspective,” 2022.
D. B. Menezes, M. Gumashivili, and K. Kanokon, “The Role of Talent Management in Enhancing Employee Retention : Mediating the Influence of Psychological Empowerment,” Sustainability, vol. 17, no. 7, p. 3277, 2025, doi: https:// doi.org/10.3390/su17073277.
M. Kocot et al., “The Role of Employee Competencies in the Sustainable Development and Energy Efficiency of Agile Organizations,” Sustainability, vol. 16, no. 22, p. 9755, 2024, doi: https:// doi.org/10.3390/su16229755.
A. Aman-Ullah, W. Mehmood, S. Amin, and Y. A. Abbas, “Human capital and organizational performance: A moderation study through innovative leadership,” J. Innov. Knowl., vol. 7, no. 4, p. 100261, 2022, doi: 10.1016/j.jik.2022.100261.
M. An, J. Lin, and X. R. Luo, “The impact of human AI skills on organizational innovation: The moderating role of digital organizational culture,” J. Bus. Res., vol. 182, p. 114786, 2024, doi: https://doi.org/10.1016/j.jbusres.2024.114786.
M. Ghasemaghaei, S. Ebrahimi, and K. Hassanein, “Data analytics competency for improving firm decision making performance,” J. Strateg. Inf. Syst., vol. 27, no. 1, pp. 101–113, 2018, doi: https://doi.org/10.1016/j.jsis.2017.10.001.
J. P. S. Racaza, “Financial Decision Making-Skills among Managers of Small and Medium En-terprises in Relation to Business Performance,” Int. J. Multidiscip. Appl. Bus. Educ. Res., vol. 3, no. 4, pp. 538–547, 2022.
K. Tsaousiotis, K. Panitsidis, K. Spinthiropoulos, and E. Zafeiriou, “A New Perspective on Talent Management: An Integrative Review of the Current Literature,” Adm. Sci., vol. 15, no. 3, p. 102, 2025.
A. S. Abogsesa and G. Kaushik, “Impact of Training and Development on Employee Performance,” Int. J. Civ. Engag. Soc. Chang, vol. 4, no. 3, pp. 53–68, 2017, doi: 10.4018/IJCESC.2017070104.
S. Ariana, S. Helmi, M. Cahyadin, D. A. Dewi, and M. K. Alqudah, “Evolving Trends in Human Resource Management Research Within Tourism: Insights From a Bibliometric Analysis,” J. Ilm. Ilmu Ter. Univ. Jambi, vol. 9, no. 1, pp. 273–291, 2025, doi: 10.22437/jiituj.v9i1.35392.
F. N. K. Otoo, “The mediating role of employee performance in the relationship between human resource management (HRM) practices and police service effectiveness,” IIM Ranchi J. Manag. Stud, vol. 3, no. 2, pp. 108–141, 2024, doi: 10.1108/IRJMS-08-2023-0070.
S. Iqbal, I. Litvaj, M. Drbúl, and M. Rasheed, “Improving Quality of Human Resources through HRM Practices and Knowledge Sharing,” Adm. Sci, vol. 13, no. 10, p. 224, 2023, doi: 10.3390/admsci13100224.
F. R. Yamali, Nuraeni, N. Sarinastiti, A. A. Suryobuwono, N. Limakrisna, and N. Shavkatov, “The role of human resource management in the SMEs’ financial performance improvement,” Econ. Ann, vol. 208, no. 3–4, pp. 15–20, 2024, doi: 10.21003/ea.V208-03.
J. W. Creswell, A concise introduction to mixed methods research. SAGE publications, 2021.
Sugiyono, Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta, 2021.
J. Xiao, “A Preliminary Study on the New Generation Employees’ Human Resource Management and Enterprise Sustained Competitive Advantage—From the Perspective of Resource-Based View,” Am. J. Ind. Bus. Manag, vol. 08, no. 12, pp. 2364–2374, 2018, doi: 10.4236/ajibm.2018.812158.
J. E. Delery and D. Roumpi, “Strategic human resource management, human capital and competitive advantage: is the field going in circles?,” Hum. Resour. Manag. J., vol. 27, no. 1, pp. 1–21, 2017, doi: 10.1111/1748-8583.12137.
N. C. Lewaherilla, G. M. Pentury, and V. E. Huwae, “Improving Employee Performance through Competence and Interpersonal Communication,” J. Mantik, vol. 6, no. 3, 2022.
A. A. Ismail and R. Hassan, “Technical competencies in digital technology towards industrial revolution 4.0,” J. Tech. Educ. Train., vol. 11, no. 3, pp. 57–62, 2019, doi: 10.30880/jtet.2019.11.03.008.
S. Rangasamy, K. Rajamohan, A. K. Janardhanan, and K. S. Manu, “The role of financial analytics in decision-making for better firm performance,” in In Analytics enabled decision making, 2023, pp. 139–169.
R. E. Ployhart and T. P. Moliterno, “Emergence of the human capital resource: A multilevel model,” Acad. Manag. Rev., vol. 36, no. 1, pp. 127–150, 2011.
P. Rita, T. Oliveira, and A. Farisa, “The impact of e-service quality and customer satisfaction on customer behavior in online shopping,” Heliyon, vol. 5, no. 10, 2019.
S. Pujianto, “Effectiveness of Employee Training and Development in Increasing Productivity and Innovation in Multinational Companies Open Access,” Gobal Int. J. Innov. Res, vol. 2, no. 9, pp. 2246–2256, 2024.
X. Zhao, R. L. Selman, and H. Haste, “Academic stress in Chinese schools and a proposed preventive intervention program Academic stress in Chinese schools and a proposed preventive intervention program,” Cogent Educ, vol. 28, no. 1, pp. 1–15, 2015, doi: 10.1080/2331186X.2014.1000477.
B. E. Becker and M. A. Huselid, “Strategic Human Resources Management: Where Do We Go From Here?,” J. Manag., vol. 32, no. 6, pp. 898–925, 2006, doi: 10.1177/0149206306293668.
S. Subroto, E. Sudarmanto, and M. G. Sono, “The Effect of Talent Management on Employee Satisfaction and Performance in Manufacturing Companies in Indonesia The Effect of Talent Management on Employee Satisfaction and Performance in Manufacturing Companies in Indonesia,” West Sci. Bus. Manag, vol. 2, pp. 946–954, 2024, doi: 10.58812/wsbm.v2i03.1274.
S. Hosen, S. Raba, I. Arif, and S. Noormi, “Heliyon Training & development , career development , and organizational commitment as the predictor of work performance,” Heliyon, vol. 10, no. 1, p. e23903, 2024, doi: 10.1016/j.heliyon.2023.e23903.
C. Rowland and R. Hall, “Management learning, performance and reward: theory and practice revisited,” J. Manag. Dev., vol. 33, no. 4, pp. 342–356, 2013, doi: 10.1108/JMD-08-2012-0110.
A. Rizki and D. Pranitasari, “Optimizing Job Satisfaction: A Comprehensive Analysis of Work Discipline, Compensation, and Motivational Factors,” Ecoment Glob. J., vol. 8, no. 3, pp. 131–146, 2023.
J. Christensen Hughes and E. Rog, “Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations,” Int. J. Contemp. Hosp. Manag., vol. 20, no. 7, pp. 743–757, 2008.
B. Sivathanu, “Technology and talent analytics for talent management – a game changer for organizational performance,” Emerald Insight, vol. 28, no. 2, pp. 457– 473, 2020, doi: 10.1108/IJOA-01-2019-1634.
A. M. Almashyakhi, “Talent Management Practices and Employee Retention : Does It Make a Difference ?,” Merits, vol. 4, no. 4, pp. 453–462, 2024.
Supi, Noermijati, D. Wirawan Irawanto, and A. Puspaningrum, “Talent management practices and turnover intention: The role of perceived distributive justice and perceived organizational support,” Cogent Bus. Manag., vol. 10, no. 3, p. 2265089, 2023, doi: 10.1080/23311975.2023.2265089.
S. Sutrisno, A. M. A. Ausat, S. Suherlan, and S. Rijal, “Towards Competitive Advantage: Employee Competency Development Strategies in Promoting Business Innovation,” J. Penelit. Inov., vol. 4, no. 2, pp. 601–608, 2024.
M. Thunnissen and P. Boselie, Talent Management in Higher Education. Emerald Publishing Limited, 2024.
R. Schreuder and S. Noorman, “Strategic talent development–making the best people in crucial positions better,” Strateg. HR Rev., vol. 18, no. 6, pp. 263–267, 2019, doi: 10.1108/SHR-04-2019-0034.
S. Natarajan, “The Effectiveness of Training and Development on Employees Performance among the MSMEs in Hosur, India,” AEGAEUM J., vol. 11, no. 3, pp. 1–10, 2023.
E. Hephzibah, “Employee Competency Management Initiative : A Literature Review,” Int. J. Sci. Res. Manag., vol. 10, no. 01, pp. 2834–2843, 2022, doi: 10.18535/ijsrm/v10i1.em1.
A. Agnihotri and R. K. Misra, “Emotional & technological impact on managerial competencies: outlining the development agenda,” Dev. Learn. Organ. An Int. J., vol. 37, no. 4, pp. 22–25, 2023, doi: 10.1108/DLO-05-2022-0083.
I. Farida and D. Setiawan, “Business strategies and competitive advantage: the role of performance and innovation,” J. open Innov. Technol. Mark. Complex., vol. 8, no. 3, p. 163, 2022, doi: 10.3390/joitmc8030163.
N. Tang, “Cognitive abilities, self-efficacy, and financial behavior,” J. Econ. Psychol., vol. 87, p. 102447, 2021, doi: 10.1016/j.joep.2021.102447.
M. H. Tammubua and D. Surapto, “Analysis of Competence and Service Quality on Customer Satisfaction and Loyalty in Eastern Indonesia Border Tourism,” Budapest Int. Res. Critics Institute-Journal, vol. 3, pp. 2568–2574, 2020.
T. N. Huynh, P. Van Nguyen, A. M. Do, P. U. Dinh, and H. T. Vo, “Heliyon Fostering organizational performance through innovation : The roles of environmental policy instruments, organizational learning supports, and intellectual capital,” Heliyon, vol. 10, no. 20, p. e39361, 2024, doi: 10.1016/j.heliyon.2024.e39361.
M. Younas and M. W. Bari, “The relationship between talent management practices and retention of generation ‘ Y ’ employees : mediating role of competency development,” Econ. Res. istraživanja, vol. 33, no. 1, pp. 1330–1353, 2020, doi: 10.1080/1331677X.2020.1748510.
N. Gupta and J. D. Shaw, “Employee compensation: The neglected area of HRM research,” Hum. Resour. Manag. Rev., vol. 24, no. 1, pp. 1–4, 2014, doi: 10.1016/j.hrmr.2013.08.007.
I. A. O. Martini, A. E. S. Gorda, A. O. S. Gorda, D. M. F. P. Sari, and M. E. Y. Antara, “Impact of competence development, on work creativity, employee performance, and competitiveness of woven products,” Cogent Bus. Manag., vol. 11, no. 1, p. 2353136, 2024, doi: 10.1080/23311975.2024.2353136.
I. H. Mubarok and S. Panjaitan, “The Effect of Talent Management, Employee Engagement and Organizational Culture on Performance Employees: Case Study at Factory of Sari Takagi Elok Produk Line PR,” J. Off., vol. 10, no. 1, pp. 19–27, 2024.
M. Kaliannan, D. Darmalinggam, M. Dorasamy, and M. Abraham, “Inclusive talent development as a key talent management approach: A systematic literature review,” Hum. Resour. Manag. Rev., vol. 33, no. 1, p. 100926, 2023, doi: 10.1016/j.hrmr.2022.100926.
O. Adewunmi, “Technology and Tools for Effective Global Talent Management,” IRE Journals, vol. 8, no. 6, pp. 934–945, 2024.
P. C. Bahuguna, D. Bangwal, and R. Kumar, “Talent management and its impact on organizational commitment: An empirical investigation of Indian hospitality industry,” FIIB Bus. Rev., vol. 12, no. 2, pp. 176–192, 2023, doi: 10.1177/23197145221101436.
D. Touriano, S. Sutrisno, A. D. Kuraesin, S. Santosa, and A. M. A. Ausat, “The role of information technology in improving the efficiency and effectiveness of talent management processes,” J. Minfo Polgan, vol. 12, no. 1, pp. 539–548, 2023.
E. Gallardo-Gallardo, M. Thunnissen, and H. Scullion, “Talent management: context matters,” Int. J. Hum. Resour. Manag., vol. 31, no. 4, pp. 457–473, 2020, doi: 10.1080/09585192.2019.1642645.
I. Matić, “Managerial interpersonal competencies-benefiting from learning organization characteristics in SMEs,” Manag. Dyn. Knowl. Econ., vol. 10, no. 1, pp. 19–36, 2022, doi: 10.2478/mdke-2022-0002.
C. Blanka, B. Krumay, and D. Rueckel, “The interplay of digital transformation and employee competency: A design science approach,” Technol. Forecast. Soc. Change, vol. 178, p. 121575, 2022, doi: 10.1016/j.techfore.2022.121575.
J. M. Modise, “The Impacts of Employee Workplace Empowerment , Effective Commitment and Performance : An Organizational Systematic Review,” Int. J. Innov. Sci. Res. Technol, vol. 8, no. 7, p. 3435, 2023.
U. Srihandayani and K. Kusnendi, “Effect of Talent Management and Organizational Culture on the Performance of Employees (Study on Employee Brantas Abipraya Company, Jakarta),” in 3 rd Global on Business, Management, and Entrepreneurship (GCBME 2018), 2020, vol. 117, pp. 233–235.
A. Murphy, J. Gaytan, and A. Endres, “Effective Talent Management Practices of Small- and Medium-Sized Businesses,” Int. J. Appl. Manag. Technol., vol. 22, no. 1, pp. 1–18, 2023, doi: 10.5590/IJAMT.2023.22.1.01.
N. Deepalakshmi, D. Tiwari, R. Baruah, A. Seth, and R. Bisht, “Employee Engagement And Organizational Performance : A Human Resource Perspective,” Educ. Adm. Theory Pract., vol. 30, no. 4, pp. 5941–5948, 2024, doi: 10.53555/kuey.v30i4.2323.
P. D. Sugiyono, “MetodePenelitian Kuantitatif, Kualitatif dan R&D. Bandung: PT Alfabet,” Sugiyono. Remaja Rosdakarya. https://doi. org/10.1017/CBO9781107415324, vol. 4, 2019.
I. Ghozali, Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro., 2018.
S. Kurnianto and S. Ningsih, “The Influence of Adaptive, Competence, and Transformative Leadership on Individual Performance,” Ekuitas J. Ekon. dan Keuang., vol. 8, no. 1, pp. 179–198, 2021, doi: 10.24034/j25485024.y2024.v8.i1.6266.
E. E. Mahembe and N. M. Odhiambo, “Does foreign direct investment cause economic growth? A dynamic panel data analysis for SADC countries,” Int. J. Emerg. Mark, vol. 11, no. 3, pp. 316–332, 2016, doi: 10.1108/IJOEM-06-20140084.
H. Rahman, “The Role of Interpersonal Skills of Village-Owned Enterprise (BUM Desa) Managers in East Sumba Regency Facing the Challenges of Changing Economic Structures,” Reinf. Relev. Tech. Interpers. competence Dev, vol. 16, no. 3, pp. 573–587, 2024.