Human Capital Integration Model With Technology Innovation In Small And Medium Enterprises (SME)

Environmental management in the business operational process (MSMEs), give a positive influence on MSMEs sustainability in the short and long term. Green human resource management (Green HRM) is one tool that can be used to manage MSMEs workforce by involving environmental aspect. This study aims to determine the model of integration between human capital and technological innovation in MSMEs. The research variables used consist of human capital, technological innovation and productivity. The study was conducted on manufacturing MSMEs located in East Java. Data processing is done by using discrete statistic. The results show that the integration between human capital can be done through the stages of labor development as a human capital in MSMEs, then can be done technological innovation. The competencies expected in human capital of MSMEs are Visionary, Business managerial ability, Ability to formulate business strategy, Open with renewal, Soul of good leadership, Communicative (able to negotiate with external party).