Strategic Human Resource Management and Employee Innovative Behavior in Enhancing MSME Performance the Role of Digital Leadership as A Moderating Variable

Dasmadi Dasmadi (STIE Aprin Palembang)
Yunita Niqrisah Dwi Pratiwi (Universitas Boyolali)

Journal of Exploratory Dynamic Problems
Vol. 3 No. 4 (2026): Vol.3 No. 4 2026

This study examines the relationship between Strategic Human Resource Management (SHRM), employee innovative behavior, and MSME performance, with digital leadership serving as a moderating variable. The study is based on the premise that effective human resource strategies can strengthen employees’ ability to generate and implement new ideas, while digital leadership may enhance the contribution of innovative behavior to organizational performance. A quantitative approach is employed using a survey of MSME employees and managers. Data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the direct effects of SHRM and employee innovative behavior on MSME performance and the moderating effect of digital leadership. The proposed model provides an integrated perspective on how human resource practices, employee innovation, and digital leadership interact to support MSME performance in an increasingly digital business environment.