The Role of Government Policies in Moderating the Influence of Social Capital and Human Capital on the Performance of SMEs in Denpasar
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August 22, 2023The Role of Government Policies in Moderating the Influence of Social Capital and Human Capital on the Performance of SMEs in Denpasar
ABSTRACT : This study aims to answer the main problem, namely how is the role of government policy in
moderating the relationship between social capital and human capital which is still not consistent in influencing
the performance of SMEs. This research was conducted on UKM in Denpasar City. The analysis technique used
to answer the hypothesis is PLS-SEM analysis, with the help of SmartPLS 3.0 Software. This research was
conducted to determine the phenomenon of the use of intangible resources and its impact on the performance of
SMEs in Denpasar City. The results of the study show that social capital and government policies have a
significant positive effect on the performance of SMEs. Another finding in this study is that human capital, as
well as the interaction of both social capital and human capital towards government policies, has no effect on
the performance of SMEs in Denpasar City.
KEYWORDS – Social Capital, Human Capital, Government Policy, SME Performance