Effect of Innovation and Human Capital on Work Effectiveness with Job Satisfaction as Intervening Variable
Purpose: This study aims to analyze work effectiveness using innovation and human capital variables as independent variables and Job Satisfaction as an intervening variable.
Research Methodology: The type of sample used is total sampling with a total population of 40 employees, and data collection is done using a questionnaire. The data analysis technique used Partial Least Square analysis with validity, reliability, and hypothesis tests.
Results: The results of the hypothesis test concluded that innovation has a significant effect on job satisfaction; human capital has a significant effect on job satisfaction; innovation has a significant effect on work effectiveness; human capital has a significant effect on work effectiveness; job satisfaction has a significant effect on work effectiveness; innovation has a significant effect on work effectiveness through job satisfaction; and human capital has a significant effect on work effectiveness through job satisfaction.
Conclusions: The study concludes that innovation and human capital significantly influence job satisfaction and work effectiveness. Job satisfaction also has a significant effect on work effectiveness, and it mediates the relationship between innovation, human capital, and work effectiveness.
Limitations: The study is limited by its focus on a small sample size (40 employees) from a single district. The results may not be applicable to other regions or industries.
Contributions: This research provides insights into how innovation, human capital, and job satisfaction contribute to work effectiveness. It emphasizes the importance of job satisfaction as a key factor in improving performance, offering valuable implications for organizations aiming to boost productivity.
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