Development of Innovation Culture Based on Human Resources Management with Local Cultural Values

Abstract

This study aims to produce a model of developing a culture of innovation through an HRM approach in HRM practices and a cultural approach. This research was conducted on cooperatives in Bali. The research population is cooperative in Bali. Respondents are cooperative managers. Total population is 1371 people with 93 as sample using Slovin formula. The object of research is about the culture of innovation, human capital, human resource practices, and local Balinese cultural values. Inferential statistics using Partial Least Square to analyze data and test hypotheses. The results of this study resulted in a model to strengthen the innovation culture determined by HRM, namely through an approach to HRM practices based on local cultural values. Culture in the form of values is an external factor that is able to encourage the internal environment to innovate. This study found that human capital did not mediate the influence of HRM practices on the culture of innovation, but HRM practices had an effect on human capital.