Energizing Organizational Learning and Organizational Performance: Human Capital Theory Perspective

Abstract
This paper examines how energizing the organizational learning process improves embroidery SMEs' performance
in Indonesia. Quantitative research was conducted to test the suggested model's relationships. We use covariancebased
SEM to analyze the relationship between variables. To achieve the objectives of this study, a survey method
was used for 205 SMEs consisting of owners, managers,
and managers from a population of 280 embroidery SMEs in
Tasikmalaya Regency and City, West Java. This study proposes a conceptual paradigm to energize
organizational learning processes to improve the performance of embroidery SMEs in a dynamic environment.
The findings show that the energizing organizational learning process positively affects embroidery business
performance. The authors also discovered that an energizing corporate learning process moderates the relation
between transformative leadership and organizational performance. This research only uses one type of leadership.
It is possible to use several other types of leadership to be tested in an empirical model. Additionally, more sample
variety should be considered in terms of cross-cultural comparative studies. This study addresses gaps in the
literature and practice of transformational leadership, examining the interaction between energizing organizational
learning processes and the efficacy of SME teamwork.
Keywords: Human capital theory, Energizing the Organizational Learning, Transformational Leadership, embroidery,
SMEs.