Porcelain Publishing / JCHRM / Volume 17 / Issue 3 / DOI: 10.47297/wspchrmWSP2040-800502.20261703
ARTICLE

How Human Capital and Innovation Influence Managerial Dynamism through Organizational Agility in SMEs

Ida Ketut Kusumawijaya1* Partiwi Dwi Astuti2 I Made Hedy Wartana1 I Ketut Yudana Adi3
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1 Management Department, Triatma Mulya University, Bali 80361, Indonesia
2 Accounting Department, Warmadewa University, Bali 80239, Indonesia
3 Accounting Department, Triatma Mulya University, Bali 80361, Indonesia
Published: 3 September 2026
© 2026 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)
Abstract

Organizational agility and dynamic managerial capability are pivotal for small and medium enterprises (SMEs) operating in volatile environments such as Bali's dynamic business landscape. This study investigates the influence of human capital and innovative work behavior on organizational agility and dynamic managerial capability, with a particular focus on the mediating role of organizational agility. A quantitative methodology was employed, involving a survey of 166 SME managers in Bali using an online questionnaire. Data analysis was performed using structural equation modeling (SEM) with a partial least squares (PLS) approach to validate model reliability and accuracy. The findings reveal that both human capital and innovative work behavior significantly foster organizational agility. In turn, agility demonstrates a strong effect on dynamic managerial capability. However, the direct impact of human capital on dynamic managerial capability is limited, and innovative work behavior shows no significant direct effect. Mediation analysis confirms that organizational agility partially mediates these relationships. These insights underscore the strategic role of agility in translating human and behavioral competencies into adaptive managerial performance. The study highlights the importance for SMEs to cultivate agile, innovation-oriented, and competency-enriched environments to bolster resilience and competitive advantage in uncertain market conditions.

Keywords
Human capital
Innovative work behavior
Organizational agility
Dynamic managerial capability
SME
Funding
This research was conducted with the generous financial support from the Directorate of Research and Community Service; Directorate General of Research and Development; Ministry of Higher Education, Science, and Technology of Indonesia, under the Master Contract Number: 129/C3/DT.05.00/PL/2025, and the Derivative Contract Number: 2166/LL8/ AL.04/2025, 032/KP-LP3M/UNTRIM/VI/2025.
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