The Importance of Human Capital in Business Performance

Oct 13, 2025 by miodeya.com 143 views

The Influence of Human Capital and Structural Capital on Business Performance with Relational Capital as an Intervening Variable in PT Pegadaian (Persero) Regional Office I Medan

Introduction

Business performance is a crucial aspect of any organization, as it determines the ability of the company to utilize its resources effectively. PT Pegadaian (Persero) Medan Regional Office, unfortunately, still shows a relatively low performance compared to other regional offices. To understand the factors that influence business performance in Regional Office I Medan, this study analyzes the effects of human capital, relational capital, and structural capital on the business performance of PT Pegadaian (Persero) Kanwil I Medan.

The Importance of Human Capital in Business Performance

Human capital refers to the knowledge, skills, and abilities of an organization's employees. It is a critical component of business performance, as it determines the ability of the organization to innovate, adapt, and respond to changing market conditions. In the context of PT Pegadaian (Persero) Medan Regional Office, human capital is essential in providing excellent customer service, developing new products and services, and improving operational efficiency.

The Role of Relational Capital in Business Performance

Relational capital refers to the relationships between an organization and its stakeholders, including customers, suppliers, and partners. It is a critical component of business performance, as it determines the ability of the organization to build trust, loyalty, and commitment with its stakeholders. In the context of PT Pegadaian (Persero) Medan Regional Office, relational capital is essential in building strong relationships with customers, improving customer satisfaction, and increasing customer loyalty.

The Impact of Structural Capital on Business Performance

Structural capital refers to the organizational infrastructure, systems, and processes that support business operations. It is a critical component of business performance, as it determines the ability of the organization to operate efficiently, effectively, and sustainably. In the context of PT Pegadaian (Persero) Medan Regional Office, structural capital is essential in improving operational efficiency, reducing costs, and increasing productivity.

Methodology

This study uses the path analysis method with the help of software partial least square (PLS) Smart PLS 3.0. This method helps researchers to test the truth of concepts and factors that influence the business performance of PT Pegadaian (Persero) Regional Office I Medan. The results showed that human capital, relational capital, and structural capital had a positive and significant influence on the business performance of PT Pegadaian (Persero) Regional Office I Medan with a significance level of 5%. However, the effect of relational capital directly on business performance is not significant.

Results

This study found that human capital and structural capital had a positive and significant influence on business performance through relational capital. This means that investment in the development of human resources and organizational infrastructure will have a positive impact on business performance through increasing good relationships with customers.

The results of this study also indicate that the business performance variables are influenced by human capital, structural capital, and relational capital by 95.2% and the rest by other variables. Relational capital itself is influenced by human capital and structural capital of 83.2% and the rest by other variables. This finding shows that human capital has an important role in improving the business performance of PT Pegadaian (Persero) Regional Office I Medan.

Implications

Based on the results of this study, here are some implications that can be applied by PT Pegadaian (Persero) Regional Office I Medan:

*** Improving Training: This research emphasizes the importance of investment in the development of human resources. PT Pegadaian (Persero) Medan Regional Office needs to improve the training program evenly for all employees.***

*** Employee Performance Monitoring: After training, PT Pegadaian (Persero) Regional Office I needs to monitor employee performance regularly to ensure that the training provided is effective and implemented properly.***

*** Building a Strong Relationship with Customers: Employees must be proactive to customers, such as doing cross-selling and still establishing good relationships with customers.***

*** Improvement of Infrastructure: Investment in adequate infrastructure and information technology can increase structural capital and help PT Pegadaian (Persero) Kanwil I Medan in providing better services to customers.***

Conclusion

By implementing these implications, PT Pegadaian (Persero) Medan Regional Office can improve its business performance, strengthen relational capital, and build a competitive advantage in the midst of competition in the financial services industry. This study provides valuable insights into the factors that influence business performance in PT Pegadaian (Persero) Medan Regional Office and highlights the importance of human capital, relational capital, and structural capital in achieving business success.

Recommendations

Based on the findings of this study, the following recommendations are made:

PT Pegadaian (Persero) Medan Regional Office should invest in the development of human resources, including training and employee performance monitoring.
PT Pegadaian (Persero) Medan Regional Office should focus on building strong relationships with customers, including cross-selling and customer service.
PT Pegadaian (Persero) Medan Regional Office should invest in adequate infrastructure and information technology to increase structural capital and improve operational efficiency.

Limitations

This study has several limitations, including:

The study only focuses on PT Pegadaian (Persero) Medan Regional Office and may not be generalizable to other organizations.
The study only examines the effects of human capital, relational capital, and structural capital on business performance and may not consider other factors that influence business performance.

Future Research Directions

Future research should focus on:

Examining the effects of other factors that influence business performance, such as technology and innovation.
Investigating the impact of business performance on organizational success and sustainability.
Developing and testing models that predict business performance and organizational success.
Frequently Asked Questions (FAQs) about the Influence of Human Capital and Structural Capital on Business Performance with Relational Capital as an Intervening Variable in PT Pegadaian (Persero) Regional Office I Medan

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effects of human capital, relational capital, and structural capital on the business performance of PT Pegadaian (Persero) Kanwil I Medan.

Q: What is human capital, and why is it important for business performance?

A: Human capital refers to the knowledge, skills, and abilities of an organization's employees. It is a critical component of business performance, as it determines the ability of the organization to innovate, adapt, and respond to changing market conditions.

Q: What is relational capital, and how does it influence business performance?

A: Relational capital refers to the relationships between an organization and its stakeholders, including customers, suppliers, and partners. It is a critical component of business performance, as it determines the ability of the organization to build trust, loyalty, and commitment with its stakeholders.

Q: What is structural capital, and how does it impact business performance?

A: Structural capital refers to the organizational infrastructure, systems, and processes that support business operations. It is a critical component of business performance, as it determines the ability of the organization to operate efficiently, effectively, and sustainably.

Q: What are the implications of this study for PT Pegadaian (Persero) Medan Regional Office?

A: The implications of this study for PT Pegadaian (Persero) Medan Regional Office are:

Improving training and employee performance monitoring
Building strong relationships with customers
Investing in adequate infrastructure and information technology

Q: What are the limitations of this study?

A: The limitations of this study are:

The study only focuses on PT Pegadaian (Persero) Medan Regional Office and may not be generalizable to other organizations
The study only examines the effects of human capital, relational capital, and structural capital on business performance and may not consider other factors that influence business performance

Q: What are the future research directions based on this study?

A: The future research directions based on this study are:

Examining the effects of other factors that influence business performance, such as technology and innovation
Investigating the impact of business performance on organizational success and sustainability
Developing and testing models that predict business performance and organizational success

Q: What are the practical implications of this study for business managers and leaders?

A: The practical implications of this study for business managers and leaders are:

Investing in human capital development, including training and employee performance monitoring
Building strong relationships with customers and stakeholders
Investing in adequate infrastructure and information technology to support business operations

Q: What are the theoretical implications of this study for business research and theory?

A: The theoretical implications of this study for business research and theory are:

Providing insights into the factors that influence business performance, including human capital, relational capital, and structural capital
Contributing to the development of business research and theory in the areas of human capital, relational capital, and structural capital

Q: What are the policy implications of this study for business policy and practice?

A: The policy implications of this study for business policy and practice are:

Informing business policy and practice in the areas of human capital development, customer relationships, and infrastructure investment
Providing guidance for business managers and leaders on how to improve business performance and achieve organizational success.