Abstract

This research aims to see the relationship between a) Human Resource Management to Innovation, b) Human Resource Management to business enterprises performance, c) Innovation to business enterprises performance. The population in this study is business enterprises in Bantul Regency as many as 104 business enterprises with purposive sampling techniques, and SEM-PLS analysis techniques. Based on the results of statistical output, for HRM variables Practice has a significant positive effect on innovation variables of 48,285 > T-table (1,995), HRM Practice has a significant positive effect on business enterprises Performance by 3,243 > T-table (1,995), Innovation has a significant positive effect on business enterprises Performance by 3,243 > T-table (1,995), Innovation has a significant positive effect on business enterprises Performance by 3,243 > T-table (1,995). 3,586 > T-table (1,995).

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