Human Capital Investment, Knowledge Sharing, and Innovation Performance in Indonesian Service Companies

Dimas Arya Wicaksono; Nabila Fitri Handayani

doi:10.70716/ecoma.v3i3.327

Authors

Dimas Arya Wicaksono Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia
Nabila Fitri Handayani Faculty of Economics and Business, Universitas Diponegoro

DOI:

https://doi.org/10.70716/ecoma.v3i3.327

Keywords:

human capital investment, knowledge sharing, innovation performance, service companies, Indonesia

Abstract

This study examines the relationships between human capital investment, knowledge sharing, and innovation performance in Indonesian service companies. The service sector relies heavily on employee skills, experience, and learning capacity to generate continuous innovation. This study adopts a quantitative explanatory approach to analyze how investments in human capital enhance innovation performance through effective knowledge sharing practices. Prior empirical evidence indicates that human capital strengthens organizational capabilities, yet its impact on innovation often depends on internal knowledge processes. This study positions knowledge sharing as a critical mechanism that converts human capital investment into innovation outcomes. The conceptual framework links human capital investment to knowledge sharing behavior, which subsequently drives service innovation performance. Empirical findings from prior studies in Indonesian service and technology sectors show that human capital investment significantly improves employees’ willingness and ability to share knowledge. Knowledge sharing, in turn, has a strong positive effect on innovation performance in service organizations. The results also indicate that knowledge sharing partially mediates the relationship between human capital investment and innovation performance. These findings highlight that innovation in service companies does not rely solely on individual competencies but on systematic knowledge exchange. The study contributes to human capital and innovation literature by providing an integrated explanation relevant to service-based economies and offers managerial implications for designing knowledge-oriented human capital strategies.

Downloads

Download data is not yet available.

References

Andrawina, L., Govindaraju, R., & Samadhi, T. A. (2008). Absorptive capacity moderates the relationship between knowledge sharing capability and innovation capability. Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management, 1–6. https://doi.org/10.1109/IEEM.2008.4738009

Andrawina, L., Govindaraju, R., & Samadhi, T. A. (2009). Knowledge sharing capability, absorptive capacity, and innovation capability: An empirical study of Indonesia’s information and communication technology industry. Jurnal Teknik Industri, 10(2), 158–170. https://doi.org/10.9744/jti.10.2.158-170

Arsawan, I. W. E., Prayustika, P. A., Gede, I. G. K., et al. (2021). Leveraging knowledge sharing and innovation towards resilient competitive advantage: Insight from the leaders. Advances in Social Science, Education and Humanities Research, 1–8. https://doi.org/10.2991/ASSEHR.K.210424.076

Arsyah, T. D., & Pakri, P. (2023). Leveraging human capital for performance enhancement in Indonesia’s technology sector. Journal of Economics and Business Letters, 4(3), 1–12. https://doi.org/10.55942/jebl.v4i3.323

Baiquny, A. S., & Nasution, Y. (2024). Peran modal intelektual, keunggulan kompetitif, dan kemampuan inovasi terhadap kinerja usaha kecil menengah. Axiom Quarterly, 18(2), 1–15. https://doi.org/10.35931/aq.v18i2.2954

Efendi, S. (2022). Peran human capital bagi keunggulan kompetitif organisasi: Sebuah tinjauan. Jurnal Kompetitif, 2(2), 1–12. https://doi.org/10.54783/jk.v2i2.406

Fildansyah, R., & Nailul, M. (2025). Do digital competence and learning culture drive agility and innovation capability through knowledge sharing? West Science Interdisciplinary Studies, 3(7), 1–14. https://doi.org/10.58812/wsis.v3i07.2110

Firmaiansyah, D., & Surjanti, J. (2014). Pengaruh berbagi pengetahuan terhadap kinerja karyawan melalui inovasi. Jurnal Manajemen, 1–10.

Fox, G., & Royle, M. T. (2014). Human capital in service innovation strategy. International Journal of Management and Marketing Research, 7(1), 29-47.

Istikhoroh, S., Suning, S., & Ardhiani, M. R., et al. (2025). Empirical study of human capital management as a knowledge-based strategic asset in building sustainability of public companies in Indonesia. International Journal of Management and Sustainability, 14(2), 1–15. https://doi.org/10.18488/11.v14i2.4199

Irhamna, N. (2018). Perilaku berbagi pengetahuan dan budaya tim pada kinerja inovasi pelayanan. Relevance Journal, 1(1), 1–10. https://doi.org/10.22515/relevance.v1i1.1294

Jian, Z., & Wang, C. (2012). The impact of relational embeddedness and knowledge sharing on service innovation performance. Proceedings of the IEEE International Conference on Service Systems and Service Management, 1–6. https://doi.org/10.1109/ICSSSM.2012.6252195

Kusumawijaya, I. K., & Astuti, P. D. (2023). The effect of human capital on innovation: The mediation role of knowledge creation and knowledge sharing in small companies. Knowledge and Performance Management, 7(1), 1–12. https://doi.org/10.21511/kpm.07(1).2023.05

Lee, C.-W., & Hidayat, N. (2018). The influence of knowledge sharing on service innovation performance: An empirical study on hotels in North Borneo, Indonesia. Journal of Business Management, 1–12.

Lewaherilla, N. C., Sijabat, A., & Siahainenia, S., et al. (2023). Effectiveness of human capital, social capital, and innovation for performance improvement. Eduvest, 3(11), 1–12. https://doi.org/10.59188/eduvest.v3i11.943

Linda, M. R., Thabrani, G., & Firman, F., et al. (2020). The linkages of the role of human capital and knowledge management on innovation: According to a literature studies. Advances in Economics, Business and Management Research, 1–8. https://doi.org/10.2991/AEBMR.K.200305.172

Maharani, A., & Susanty, A. I. (2015). Pengaruh knowledge sharing terhadap inovasi di Direktorat Human Capital Management PT Telekomunikasi Indonesia, Tbk. Jurnal Manajemen, 1–10.

Masyhuri, M., Sudiro, A., & Prabandari, S. P., et al. (2024). The effect of human capital on organizational performance in the service industry 4.0: Mediation analysis from Indonesia. Problems and Perspectives in Management, 22(1), 1–14. https://doi.org/10.21511/ppm.22(1).2024.34

Munawaroh, I. M., Rofiaty, R., & Rofiq, A. (2024). Knowledge sharing and organizational performance: Case study in Indonesia service company. Jurnal MEBIS, 4(2), 1–12. https://doi.org/10.33005/mebis.v4i2.598

Mulyadi, R., & Basuki, B. (2024). Intellectual capital, innovation, and performance of Indonesian MSMEs during the Covid-19 pandemic. Australasian Accounting, Business and Finance Journal, 18(4), 1–16. https://doi.org/10.14453/aabfj.v18i4.05

Pertiwi, R. R., Jannah, S. M., & Sodik, F. (2024). Human capital drivers to service innovation: Evidence from Islamic banking in Indonesia. Journal of Islamic Monetary Economics and Finance, 10(2), 1–18. https://doi.org/10.21098/jimf.v10i2.1969

Syunikitta, M., Pong, M., & Kiat, T. (2025). Talent management and organizational innovation: The role of knowledge sharing. Journal Markcount Finance, 3(1), 1–12. https://doi.org/10.70177/jmf.v3i1.1952

Wuryaningrat, N. F. (2013). Knowledge sharing, absorptive capacity and innovation capabilities: An empirical study on small and medium enterprises in North Sulawesi, Indonesia. Gadjah Mada International Journal of Business, 15(1), 61–78. https://doi.org/10.22146/gamaijb.5402

Zuhrofi, A. (2025). Strategi optimalisasi human capital dalam Bank BNI 46 untuk meningkatkan inovasi dan layanan. Akademik: Jurnal Mahasiswa Ekonomi dan Bisnis, 5(1), 1–10. https://doi.org/10.37481/jmeb.v5i1.1132