The relationship between human capital and organizational performance: empirical study at cooperative in Pekanbaru City, Riau Province, Indonesia

This study examined the relationship between human capital’s dimensions to organizational performance specifically at cooperatives in Pekanbaru City, Riau Province of Indonesia. Human capital consists of three dimensions, namely, employee education, employee skills, and work experience. 118 questionnaires were distributed to the cooperative’s board through direct and online method, however, only 100 questionnaires or 84.7% received and used for further
analyses. All data were analyzed using SPSS version 24. Finding of the study indicated employee competence has a positive and significant relation with organizational performance. The study suggested that the government should
enhance their participation in cooperatives, that includes conducting more training and seminars related to business development. Beside that provide more cooperative’s officer to assist the cooperatives in order to make this organization perform better.