Abstract
This study examines the role of human capital in enhancing the performance and competitiveness of MSMEs owned by Indigenous Papuans (OAP) in Jayapura City. It also investigates the role of local Papuan culture in strengthening the influence of human capital on MSME performance, as well as the position of MSME performance as a link between human capital and competitiveness. The research employed an explanatory quantitative approach via a cross-sectional survey. Data were gathered through questionnaires, interviews, observations, and supporting documents, involving 173 Indigenous Papuan MSME owners selected through purposive sampling. Data analysis was conducted using the SEM-PLS method via SmartPLS 3 software, with bootstrapping based on 5,000 subsamples. The results indicate that human capital has a positive and significant impact on both MSME performance and competitiveness. MSME performance was also found to enhance competitiveness. Local Papuan culture not only directly influences performance but also strengthens the relationship between human capital and MSME performance. Furthermore, MSME performance acts as a complementary partial mediator in the relationship between human capital and competitiveness. The research model explains 62.4% of the variance in performance and 52.5% of the variance in MSME competitiveness.
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