Effects of Human Capital, Information Technology and Financial Investment on the Employees’ Performance and Competitiveness of the Banking Industry in Indonesia by YUYUN PIRNGADI , BASRI HASANUDDIN , RAHMATIA, MADRIS DPS, Scientific Research Journal (Scirj), Volume V, Issue X, October 2017 Edition

Scirj Volume V, Issue X, October 2017 Edition
ISSN: 2201-2796

Effects of Human Capital, Information Technology and Financial Investment on the Employees’ Performance and Competitiveness of the Banking Industry in Indonesia

YUYUN PIRNGADI , BASRI HASANUDDIN , RAHMATIA, MADRIS DPS

Abstract: This study aims to analyze the effects of human capital, information technology and human resource investment on the employees’ performance and competitiveness of the banking industry in Indonesia. This research is an explanatory or confirmation research, aimed to explain the causality relationship between the above variables through hypothesis testing. Sources of data were from questionnaires distributed to 250 respondents in a Government Bank in Indonesia. The analytical method used is Structural Equation Modeling (SEM). The study found that out of ten hypotheses tested, there are only four of hypothesis are accepted. These four hypotheses are as follows. First, human capital has significant effects on employees’ performance. Secondly, employees’ performance has significant effect on competitiveness. Thirdly, financial investment has significant effect on competitiveness of banking industry through employees’ performance. Fourthly, human capital affects significantly competitiveness through employees’ performance. However, the information technology was found to be insignificant in affecting the employees’ performance. This finding was different in comparison with the previous studies. Also, it was found that financial investment has no significant effect toward employees’ performance. However, to make the employees’ performance in a better shape, the bank should give serious attention toward employees’ welfare in line with the financial improvement. Finally, given the dramatic changing paradigm of public management (NPM), further research focussing on the development of public sector management on one hand, and the practical importance of public sector business progress in the face of future competition on the other hand are a must.

Reference this Paper: Effects of Human Capital, Information Technology and Financial Investment on the Employees’ Performance and Competitiveness of the Banking Industry in Indonesia by YUYUN PIRNGADI , BASRI HASANUDDIN , RAHMATIA, MADRIS DPS published at: "Scientific Research Journal (Scirj), Volume V, Issue X, October 2017 Edition, Page 58-66 ".

Search Terms: state own enterprises, Banking Industry, human capital, information technology, financial investment, employees’ performance and public sector competitiveness

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