Abstract
This study aims to investigate the influence of knowledge management and talent management on organization performance and organizational culture as a mediating factor. This research uses methodology with an explanatory study by testing five hypotheses. A hundred twenty-seven managers from several coal companies in East Kalimantan Province are collected as a sample in this research. The researcher used the Smart PLS programs to examine the effect of the independent variable on the dependent variable through the mediating variable. The result of this study found that: (1) Knowledge management doesn’t affect organization culture; (2) Talent management practices affect organizational culture positively and significantly; (3) Knowledge management doesn’t affect organization performance; (4) Talent management affect organization performance positively and significantly; (5) Organization culture doesn’t affect organization performance; (5a) The mediation function of organizational culture is not significant between knowledge management and organizational performance, and (5b) The mediation function of organizational culture is not significant between talent management and organizational performance. This research has a managerial implication to guide the decision-maker in the company or manager in the human resource management to implement knowledge management, talent management, and organizational culture to improve organization performance.
Highlights
When compared with the 3 neighboring countries such as Singapore, Malaysia and Thailand, Indonesia is still behind the three countries, where Singapore is in 2nd place in the 20152016 and 2016-2017 periods, Malaysia is in the 25th rank in 2015-2016 and ranked 18th in 2016-2017, while Thailand was in 34th place in 2015-2016 and 32nd in 2016-2017 (Word Economics Forum)
The mining industry is one of the industries that contributes quite high to Indonesia's GDP with a percentage of 8.03% but the increase is quite low, namely only 1.22% compared to the previous year (BPS, 2018)
The mining industry, including coal mining, is one of the industries that is able to absorb a large workforce so that human resource management strategies are very important in improving company performance because it is closely related to business strategies (Gautam, 2015)
Summary
Competition with a global dimension is a serious and fundamental challenge for all countries in the current era of globalization, where global competition requires the availability of qualified and superior-minded human resources. Development shows that economic growth continues to improve slowly so that the Gross Domestic Product (GDP) in 2017 recorded a growth of 5.07%, an increase when compared to with the previous year's economic growth of 5.03%. The mining industry is one of the industries that contributes quite high to Indonesia's GDP with a percentage of 8.03% but the increase is quite low, namely only 1.22% compared to the previous year (BPS, 2018). This is a challenge for the mining industry in Indonesia in improving organizational performance. The mining industry, including coal mining, is one of the industries that is able to absorb a large workforce so that human resource management strategies are very important in improving company performance because it is closely related to business strategies (Gautam, 2015)
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