STRENGTHENING HUMAN RESOURCE CAPACITY TO SUPPORT BUSINESS SUSTAINABILITY MEDIATED BY ENTREPRENEURIAL BEHAVIOR OF F&B SERVICE MSMES IN MAKASSAR CITY

Abstract

This study aims to analyze the strengthening of human resource capacity, particularly in terms of creativity and innovation, in supporting the business sustainability of MSMEs in the Food and Beverage (F&B) service sector in Makassar City. The study also focuses on the role of entrepreneurial behavior as a mediating variable that can enhance the relationship between human resource capacity and business sustainability. The research method used is quantitative with a survey approach, where data was collected through questionnaires distributed to 359 randomly selected respondents from a population of 3,443 F&B service MSMEs in Makassar City. Data analysis was performed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method to test the causal relationships between research variables. The results of the analysis show that increasing human resource capacity in aspects of creativity and innovation has a significant impact on business sustainability. Moreover, entrepreneurial behavior positively and significantly mediates the relationship between creativity, innovation, and business sustainability. This indicates that strengthening entrepreneurial behavior is a key factor in enhancing the impact of human resource capacity on the sustainability of MSMEs. The findings of this study provide practical implications for stakeholders in developing training programs and policies that encourage increased creativity and innovation as well as proactive entrepreneurial behavior for the sustainability of F&B service MSMEs in Makassar City. The study also highlights the importance of integrating HR development strategies with strengthening entrepreneurial behavior to achieve sustainability goals.