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Human resource competence and work motivation play a crucial role in improving the performance of micro, small, and medium enterprises (MSMEs) in Serang City, Banten. A study published in the Indonesian Journal of Business Analytics found that work motivation significantly strengthens the relationship between human resource competence and MSME performance. The research was conducted by Salapudin and Ihwan Satria Lesmana from Universitas Bina Bangsa, Indonesia.
The study highlights the growing importance of human resource quality in maintaining MSME competitiveness amid rapidly changing economic and market conditions. Researchers observed that many MSMEs in Serang City still face challenges related to limited managerial capabilities, low innovation adoption, unstable work motivation, and weak utilization of digital business strategies. These issues continue to affect business growth and sustainability.
According to the researchers, competence alone is insufficient to guarantee business success. MSME owners and workers also require strong internal motivation to transform their skills, knowledge, and technical capabilities into effective operational performance.
The research used a quantitative associative approach involving 100 MSME actors in Serang City. Respondents were selected using purposive sampling criteria, particularly business owners who had operated their businesses for at least one year. Data collection took place between December 2025 and February 2026 through structured questionnaires and statistical analysis methods, including regression and mediation testing.
The findings showed that all major variables in the study were categorized as “good.” MSME performance recorded the highest average score at 3.90, followed by human resource competence at 3.85 and work motivation at 3.78.
Regression analysis revealed several key findings:
- Human resource competence significantly affected MSME performance with a coefficient value of 0.45.
- Human resource competence significantly increased work motivation with a coefficient value of 0.50.
- Work motivation significantly influenced MSME performance with a coefficient value of 0.40.
- Work motivation also acted as a mediating variable with an indirect effect value of 0.20.
The researchers explained that MSME actors with strong competencies tend to possess higher self-confidence, stronger business commitment, and greater enthusiasm in managing their enterprises. These qualities contribute directly to productivity, competitiveness, and business sustainability.
The study also found that work motivation amplifies the impact of competence on business outcomes. MSME owners with stronger motivation are more capable of applying their managerial knowledge, technical skills, and innovation strategies effectively in daily operations.
Salapudin and Ihwan Satria Lesmana concluded that strengthening MSME competitiveness requires a dual strategy: improving human resource competence while simultaneously reinforcing work motivation. According to the researchers, sustainable MSME development programs should combine skills training, managerial education, and motivational support to produce long-term business resilience.
The findings are considered highly relevant for policymakers, business development institutions, and local governments aiming to strengthen MSMEs as drivers of regional economic growth. Integrating competency development with motivational programs may help MSMEs become more adaptive, productive, and competitive in increasingly dynamic business environments.
Author Profiles
- Salapudin - Universitas Bina Bangsa
- Ihwan Satria Lesmana - Universitas Bina Bangsa
Research Source
Salapudin, & Lesmana, I. S. (2026). The Role of Work Motivation in Mediating Human Resource Competence on MSME Performance in Serang City. Indonesian Journal of Business Analytics (IJBA), Vol. 6 No. 2, April 2026, pp. 259–272.
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