The Effect of Human Capital and Organizational Learning on Performance Mediated by Organizational Competency

The purpose of this research is to analyze the effect of human capital and organizational learning on company performance which is mediated by organizational competence. This research uses quantitative research with descriptive analysis approach. The population in this study were 75 respondents, each of whom worked for 3 MSMEs in the city of Jakarta. The sampling technique used is a saturated sample. The types of data in this study are primary data and secondary data. Data collection techniques using observation techniques, in-depth interviews and questionnaires. The analysis technique is carried out with two main parts, namely the measurement model and the structural model. Based on the results of research data analysis, it can be concluded that: 1) Human Capital has a positive and significant effect on organizational competency with a t-statistic value of 5.176; 2) Organizational Learning has a positive and significant effect on organizational competency with a t-statistic value of 4.786; 3) Human Capital has a positive and significant effect on Company Performance mediated by organizational competence with a t-statistic value of 5.387; 4) Organizational Learning has a positive and significant effect on Company Performance mediated by organizational competence with a tstatistic value of 3.175; and 5) Organizational Competency does not directly affect the Company's Performance with a t-statistic value of 1.571.


INTRODUCTION
The emergence of hyper-competition comes from technological developments and the widespread influence of globalization, this forces every company to create competitive advantages that can ensure the continuation and survival of a company, these advantages must have characteristics and development in the long term (Digdowiseiso, 2020). As a good corporate strategy, the company will focus on human resources to continue the function of the company's development to the fullest, specifically to deal with the dynamics of environmental changes that occur. Thus, companies are required to have technical, theoretical, conceptual, moral abilities from corporate organizational actors at every level or level of work needed (Zulmasyhur, 2018).
The era of unrestricted free trade has increased mobility which was originally only limited to capital and goods, expanded to labor and science (Felicio et al., 2014). These changes have also changed the way the company's business is based on the workforce to a knowledge-based business (business based on knowledge), with the main characteristics of science .
According to the Financial Accounting Standards Board's (FASB) statement, science is one of the intangible assets, or non-monetary assets that lack a physical form, referred to as intellectual capital . The formation of the concept that knowledge is a critical strategic resource for businesses is based on the reality that knowledge can be used to enhance a company's competitiveness because it is valuable, difficult to replicate, and cannot be replaced by other types of resources (Otto, 2019; . Measuring a company's success financially is extremely precise, but what will actually drive the value of the money is human capital and all the information, ideas, and inventions it possesses. Additionally, human capital is the lifeblood of a business (Waluyo et al., 2019). Although human resources or human capital can help a business increase its competitiveness, human resources are rarely given primary focus in many businesses. Many business leaders are unaware that their company's revenues are derived from human capital; this is because their operations are viewed solely through a business lens (Digdowiseiso & Zainul, 2020). Company executives do not view their organization as a collection of unique knowledge and abilities, or as a collection of distinctive business assets capable of differentiating their products or services from those of competitors  The World Bank has created a new indicator at the IMF-World Bank meeting to measure the degree of human capital (HCI) released by the United Nations Development Program (UNDP) in its annual publication entitled Human Development Report. Indonesia's position is 87th with a total score of 0.53 points. According to World Bank assessors, what is meant by human capital consists of several things, namely knowledge, health, and skills combined throughout human life, which enable humans to realize their potential as members of a population and increase community productivity on a broad scale. This can be a solution to end extreme poverty strata and create a more inclusive society and develop human resources (Sugiyanto & Digdowiseiso, 2017). Several types of investment are needed for this development, including in the areas of health care, nutrition, quality education, employment and skills. The development of the four elements of human capital according to the WEF are as follows:

Figure 1. Elements of Human Capital
Source: WEF (2020) This of course will have a big effect on performance. Performance which comes from the word "work" is an activity carried out by a person or organization in carrying out the tasks that are their work. The degree of company competition or company performance is reflected through the performance of individuals in the company (Rozandi & Digdowiseiso, 2021;Taufik et al., 2021). In the end, the assessment of individual employee performance plays an important role for the company to make an optimum HR development program. So, companies need to know what factors affect performance. There are several requirements for a good performance measure, including: relating to organizational goals, balanced between long and short term, reflecting key management activities that have an effect on employee actions, easy to understand by employees, used as a basis for performance evaluation and determination of remuneration, rational, objective and measurable, and used consistently and regularly (Minang et al., 2021).
The business world experiences rapid changes and tends to be unpredictable, in order to survive, companies must be able to read and recognize various conditions to quickly adapt to these very fast changes. The main key for this to happen is implementing a learning organization. Learning organization is an organization that is trained in creating, gaining and changing the knowledge or information obtained and improving attitudes to create a new perspective, with the main condition for creating this is the will of variety and a good leader figure (Waluyo et al., 2019).
In simpler terms, a learning organization is an organization where each member continues to improve their abilities in order to achieve the expected good performance. In this positive environment, all aspirations of members individually and in groups are given freedom, progress together and sustainably . Therefore, it becomes a challenge for the company to be able to create a learning organization in order to increase the company's performance in the long term.

B. LITERATURE REVIEW 1. Human Capital
Human capital is made of two fundamental terms, namely human and capital (capital). Capital is defined as a factor of production that is utilized to create a good or service without being consumed in the process. According to the definition of capital, humans are a type of capital, similar to machinery and technology. Additionally, humans play a part or bear responsibility for all economic activities, including production, consumption, and transactions .
Intellectual capital is an intangible asset that is one of the company's major assets. Human capital is described as individuals who lend their individual capabilities, commitments, knowledge, and personal experience to businesses. Although it is viewed through the eyes of individuals, it is also viewed as a work team with personal interactions both within and beyond the firm .
As this idea evolves, the concept of human capital can be classified into three distinct categories. The first concept is human capital in its most basic form. Human capital, according to this definition, is any ability that humans possess, such as knowledge and talents. Rastogi (2002) clarifies this by stating that human capital is defined as the information, competence, attitudes, health, and traits possessed by persons. Human capital, on the other hand, is defined as knowledge and skills obtained through a variety of educational activities, including schools, courses, and training. The key notion of this approach is that human capital is something that is accumulated through a certain procedure . This approach makes the erroneous assumption that human capital is not derived through human experience.
The third notion takes a production-oriented approach to human capital. According to Romer (1999), human capital is a critical source of economic output. Human capital is another type of investment that humans make in order to boost their productivity (Rosen, 1999). According to Frank & Bemanke (2007), human capital is a collection of education, experience, training, skills, habits, health, energy, and initiatives that all contribute to human output.
Based on this description, the following hypothesis can be drawn: H1: Human Capital has a positive and significant effect on Organizational Competency H3: Human Capital has a positive and significant effect on company performance mediated by organizational competence.

Learning Organization
Learning organizations or commonly called learning organizations, this term is part of the "In Search of Excellence" movement. If a human group is to survive individually or as a company, or as a nation, it must create a tradition of learning organizations. A learning organization is one in which employees are constantly growing their capabilities and acquiring new knowledge. While the researcher describes a learning organization as one that enables learning from all of its members and modifies itself on a constant basis.
Learning organizations are those that place a premium on the advancement of learning and the dissemination of information within the organization. A learning organization is one that has established the capacity to learn, adapt, and change on a continual basis. Learning organizations are able to motivate all employees to be willing and capable of improving their daily behavior, which is reflected in the advancement of paradigms (views and ways of thinking), the development of intelligence (balance between intellectual, emotional, and spiritual intelligence), and the broadening of employees' horizons. A learning organization is an institution or organization that carries out activities to increase learning knowledge in groups with enthusiasm and does not stop in adding, organizing, and applying its knowledge for the progress of the company (Sugiyanto & Sihotang, 2017). Learning organization is a concept that provides strength for an organization to be able to survive in the face of environmental developments. The application of learning organizations makes organizations have the flexibility to adapt to environmental changes that are increasingly dynamic and difficult to predict. Organizational learning can also be described as a set of organizational behaviors that indicate a commitment to learning and continuous improvement. Organizational learning is a type of activity in an organization where an organization continues to learn.
Schien suggests the characteristics of learning organizations as follows: 1) In relation to the environment, the organization is more dominant in establishing relationships; 2) Humans should behave proactively; 3) Humans are basically good creatures; 4) Humans are fundamentally changeable; 5) In human relations, individualism and collectivism are equally important; 6) In peer-to-peer or participatory and paternalistic relationships, they are equally important; 7) Time orientation is more oriented towards the short future; 8) For the calculation of more time, the medium unit of time is used; 9) Complete continuous information and communication network; 10) Relationship orientation and task orientation are equally important; and 11) The need to think systematically .
Farago & Skyrme said that learning organizations have the following characteristics: 1) Oriented to the future and things that are external or outside the organization; 2) Clear and free flow and exchange of information; 3) There is a commitment to learning and individual efforts to develop themselves; 4) Empower and improve individuals within the organization; 5) Develop a climate of openness and mutual trust; and 6) Learn from experience. Based on this description, the following hypothesis can be drawn: H2: Learning Organization has a positive and significant effect on Organizational Competence. H4: Learning Organization has a positive and significant effect on company performance mediated by Organizational Competence.

Organizational Competence
Competence comes from the English word, namely competence. The meaning is the same as being competent, while competent has the same meaning as having ability, power, authority, skill, knowledge, attitude and so on. Thus, competence is the ability, skill, skill and knowledge of a person in a particular field. So, competence is defined as adequate skills to perform a task or a required skill and skill. Competence can be understood as a skill or ability. Competence refers to the ability to carry out something that is obtained through education and training.
High organizational competence will improve employee performance, this is in accordance with the results of Sobandi's research (2010) that organizational competence has an effect on company performance, as well as the results of research by Setyono & Sudjadi (2011) that organizational competence has a positive impact on teacher performance. Gunawan (2015) in his research also states that organizational competence has a direct and significant positive effect on employee motivation, as well as research results from Siti Mujanah (2019) that high organizational competence will have an impact on achieving high performance.
Therefore, the organization must determine its goals and objectives both in the vision, mission or goals of an organization. Therefore, all organizational actors can proceed through interaction either at the individual or group stage within the organization or outside the organization. In order to achieve the results in accordance with expectations, the entire process of internal and external interaction must be carried out with a high level of effectiveness and in accordance with the targets to be achieved, the key to the success of this process lies in human management. Based on this description, the following hypothesis can be drawn: H5: Organizational competence has a positive and significant effect on company performance. METHOD This research uses quantitative research with descriptive analysis approach. The population in this study were 75 respondents, each of whom worked for 3 MSMEs in the city of Jakarta. The sampling technique used is a saturated sample. The types of data in this study are primary data and secondary data. Data collection techniques using observation techniques, in-depth interviews and questionnaires. The analysis technique is carried out with two main parts, namely the measurement model and the structural model. The measurement model is used to test and analyze the validity and reliability of the data used for each variable, while the inner model is used to test the suitability of the model and analyze the causal relationship between variables.

D. RESULT AND DISCUSSION 1. Convergent Validity
Based on the convergent validity analysis, it can be concluded that all indicators for research variables have an outer loading value larger than 0.5 and a t-statistic value greater than 1.96, indicating that all indicators are valid for measuring the variables utilized and meet the requirements. convergent validity in order for it to be utilised in subsequent studies. .724 Performance (Y) .686 Source: data proceed According to the AVE value, all latent constructs/variables already have AVE values greater than 0.50, indicating that the indicators for competence, organizational support, communication, motivation, and teacher performance are all valid for measuring latent variables or demonstrate convergent validity.

Discriminant Validity Analysis
The discriminant validity of each indicator is determined by the cross-loading values for the variables employed. A variable indicator is stated to have discriminant validity if it has a bigger cross-loading value in the created construct than the other constructs. The following table summarizes the results of the discriminant validity testing conducted in this study:

Composite Reliability
Composite reliability is a metric used to quantify a construct that is visible from the perspective of the latent variable coefficient. Two tools are available for evaluating CR: internal consistency and Cronbach's alpha. If the result obtained is more than 0.70, the construct has a high reliability rating. The following table summarizes the composite reliability findings from this study:  Table 3 above, it can be seen that almost all variables already have composite reliability and Cronbach's alpha values greater than 0.70, so it can be concluded that the variables of competence, organizational support, communication, and teacher performance are reliable. Specifically for the motivation variable, it has a Cronbach's alpha value of less than 0.70, but it is still acceptable because it is still greater than 0.60, this is in accordance with the opinion of Hair et al., 2010 in Jogiyanto & Abdillah (2014) that the rule of thumb value reliability must be greater than 0.70 and values above 0.60 are still acceptable.

Hypothesis Testing with Inner Weight
Parameters whether there is a partial effect can be known based on the t-statistic value 1.96, then there is an effect of exogenous variables on endogenous variables or vice versa. Furthermore, if the t-statistic < 1.96 then there is no effect of exogenous variables on endogenous variables or vice versa. The results of hypothesis testing the influence between variables are presented in the following table:

The Influence of Human Capital on Organizational Competency
Based on the data in table 5, Human Capital has a positive and significant effect on organizational competency with a t-statistic value of 5.176 which is greater than 1.96 so it can be concluded that hypothesis 1 is accepted. These results are in accordance with the results of research conducted by Winarno  Human capital is critical because it serves as a source of innovation and renewal for a company's strategy, which may be achieved through sound business management, continuous improvement, and employee development. Additionally, human capital adds value to the organization every day through motivation, commitment, competence, and effective teamwork. Employees can create value in the following ways: by developing the firm's competences, by transferring knowledge from workers to the organization, and by changing the management culture. Human capital is created in a business by a combination of three factors: 1) the characteristics brought to work, such as intelligence, energy, a positive attitude, reliability, and commitment; 2) one's capacity to learn, such as intelligence, imagination, creativity, and talent; and 3) motivation to share information and knowledge, such as team spirit and goal orientation.

The Effect of Organizational Learning on Organizational Competency
Based on the data in table 5, Organizational Learning has a positive and significant effect on organizational competency with a t-statistic value of 4.786 which is greater than 1.96 so it can be concluded that hypothesis 2 is accepted. This result is in accordance with previous research conducted by Raduan Che Rose et al. (2009) which found that organizational learning has a positive and significant effect on organizational competency.
There are several factors that affect organizational competence, namely as follows: 1) beliefs and values. People's beliefs about themselves and others will greatly affect organizational behavior. For this reason, each member must think positively about himself and others and show the characteristics of people who think ahead; 2) Skills. Skills play a role in most public speaking competencies are skills that can be learned, noticed and improved; 3) By improving public speaking and writing skills, individuals will increase their skills in competencies regarding attention to competencies that are specifically related to competencies that can have an impact on both organizational culture and individual competencies; 4) Experience. Expertise from many competencies requires experience organizing people, communicating in front of groups, solving problems and so on. Experience is a necessary element of competence, but experience is not enough to become an expert. Other aspects of competence that may change with the passage of time and changes in the environment; 5) Personal characteristics. People who are quick to anger may find it harder to be strong in conflict resolution than those who are easy to manage, although they can change, personalities don't tend to change easily. Of course, factors such as experience can increase proficiency in these competencies.

Influence of Human Capital on Company Performance Mediated by Organizational Competency
Based on the data in table 5, Human Capital has a positive and significant effect on company performance mediated by organizational competence with a t-statistic value of 5.387 which is greater than 1.96 so it can be concluded that hypothesis 3 is accepted. This result is in accordance with the results of previous research conducted by Frank Nana Kweku (2020), Shwana Mohammed Akoi & Mehmet Yesiltas (2020), and Benny Hutahayan (2020) which stated that human capital has a positive and significant effect on company performance mediated by organizational competency.
Even though human capital is now a topic that is discussed by many business people to encourage company competitiveness, there are still many companies that make it their main concern. Many company leaders are not aware of the benefits of utilizing and developing human capital.

The Effect of Organizational Learning on Company Performance Mediated by Organizational Competency
Based on the data in table 5, Organizational Learning has a positive and significant effect on company performance mediated by organizational competence with a t-statistic value of 3.175 which is greater than 1.96 so it can be concluded that hypothesis 4 is accepted. Several characteristics of learning organizations include the following: 1) Tolerance for dangerous actions. That is, an organizational culture is considered to be positive if it allows members or employees to behave aggressively and innovatively in order to grow the organization or company and dare to take chances in their work; 2) Orientation. That is the extent to which an organization can articulate its intended goals and expectations clearly enough for employees to understand and for all employee activities to contribute to the attainment of corporate goals.
These objectives and expectations are clearly defined in the organization's vision, mission, and goals; 3) Cohesion. That is, the extent to which an organization or business may incentivize organizational units to work together; 4) Management Assistance. That is the extent to which managers can communicate effectively with, assist, and support subordinates. This assistance can take the shape of initiatives to increase employees' competencies, such as conducting training; 5) Command. Specifically, the monitoring of employees' behavior while performing their jobs in accordance with the regulations established for the organization's smooth operation; 6) Individuality. Specifically, the amount to which members of an organization may identify with the organization as a whole, rather than with a particular work group or area of professional specialization; 7) Reward Structure. That is, the extent to which awards (salary increases, promotions, and so on) are allocated on the basis of employee performance, rather than seniority, favoritism, and so on; 8) Tolerance for Disagreement.
This metric indicates the degree to which employees are encouraged to express their disagreements or criticisms freely. Disagreement is a common occurrence in organizations. However, these differences of opinion and criticism can be used to develop or alter the organization's strategy in order to accomplish its objectives; and 9) Communication Pattern. This is the amount to which communication is constrained by a formal authority hierarchy.
Occasionally, the hierarchy of authority can obstruct communication between superiors and subordinates, or even between employees.

The Effect of Organizational Competency on Company Performance
Based on the data in table 5, Organizational Competency does not directly affect the company's performance with a t-statistic value of 1.571 which is smaller than 1.96 so it can be concluded that hypothesis 5 is rejected. These results are different from the results of previous studies conducted by Sabah Agha et al. (2012) and Bolivar Ramos et al. (2012) who found that organizational competency has a positive and significant effect on company performance. There are five characteristics of organizational competencies that must be developed by companies, namely: 1) skills; 2) knowledge; 3) attitude; 4) character; and 5) motives. Skill is the capacity to perform a task physically and mentally. Knowledge is the information that an individual possesses about a particular subject; knowledge is a sophisticated ability.
A person's self-concept is defined by their attitudes and values. Traits are characteristics that determine how people behave or how someone responds to something. A motive is something that a person believes persistently in order to conduct action. Thus, it is emphasized that every job, be it big or small, difficult or easy, is always done by utilizing the competencies that exist within each one optimally and with a full sense of responsibility. Organizational culture requires employees to improve their existing competencies so that in the end it is hoped that organizational goals through their business plans can be achieved.

E. CONCLUSION
Based on the results of research data analysis, it can be concluded that: 1) Human Capital has a positive and significant effect on organizational competency with a t-statistic value of 5.176; 2) Organizational Learning has a positive and significant effect on organizational competency with a t-statistic value of 4.786; 3) Human Capital has a positive and significant effect on Company Performance mediated by organizational competence with a t-statistic value of 5.387; 4) Organizational Learning has a positive and significant effect on Company Performance mediated by organizational competence with a t-statistic value of 3.175; and 5) Organizational Competency does not directly affect the Company's Performance with a t-statistic value of 1.571.