The Relationship between Human Resource Management and Islamic Microfinance Providers’ Performance: The Mediating Role of Human Capital
Amrizah Kamaluddin, Nawal Kasim

Abstract
The current study has three objectives. Firstly is to examine the relationship between the performance of Islamic Microfinance Institution with human resource management; secondly to assess whether human capital is associated with the Microfinance Institutions’ performance and finally, to investigate whether human capital mediates the relationship between human resource management and Microfinance Institutions’ performance. Data was collected via survey questionnaires. The result of regression analysis showed that there was significant, positive association between the human resource management and human capital with performance. However, human capital was found to be insignificant to mediate the relationship bertween human resource management and Microfinance Institutions’ performance. The result implies that effective Islamic human resource management processes cum excellent human capital leads to enhancement of performance. Nevertheless, human capital alone does not affect the relationship between human resource management and Microfinance Institutions’ performance. The result indicates that there are other organizational capital which should be considered to explain this relationship.

Full Text: PDF