THE INFLUENCE OF KNOWLEDGE-BASED HRM PRACTICES AND INTELLECTUAL CAPITAL ON INNOVATION PERFORMANCE OF PRIVATE HOSPITAL EMPLOYEES

.


INTRODUCTION
Innovation performance is one of the management science materials that is often discussed lately 1 .Various types of industries rely on intangible assets such as innovation performance to survive in the face of increasingly fierce competition 2 .Innovation performance is one of the important issues that need to be considered in an organization 3 .Innovation performance can be the latest product or process discovered or created by employees or members of the organization.Furthermore, innovation performance can make an organization have a potential competitive advantage to survive in the midst of increasingly rapid competition 4 .With high innovation performance, the organization will be more confident in its ability to develop and achieve success. 5novation depends on effective human resources, because innovation is obtained from the development of knowledge owned from these human resources such as new ideas, new concepts, and the like 6 .Human resources and knowledge are the main keys in building an innovation, where knowledge-based HRM practices have a positive influence on the company's innovation performance.Other research revealed that the importance of knowledge-based HRM practices for SME product and process innovation 7 .Other theories also reveal that knowledge management included in important points that organizations have to consider in order to achieve sustainable innovation and survival 8 .Furthermore, some previous researchers have discussed the interrelated relationship between HRM in a knowledge perspective with innovation 9 and intellectual capital 10 .This relationship certainly has a positive impact on an organization or company.The research concept of Kianto et al.  (2017) has identified the effect of knowledge-based HRM practices on the company's intellectual capital and increased higher innovation performance results.Where his research reveals that knowledge-based HRM practices have a considerable share in influencing company innovation, starting from the recruitment, development, evaluation, and compensation processes.In addition, intellectual capital as a predictor of the company's intangible value, such as skills to motivate employees, build external relationships, and knowledge contained in the company's information systems, documents, and databases.
Intellectual capital will also have an influence on corporate innovation.This relationship has been proven by several previous studies 11 .Overall, HRM practices have a significant role in determining innovation through organizational knowledge and increasing intellectual capital (Kianto  et al., 2017).Until now, the relationship between these variables is still an interesting issue that is most often explored by various researchers.However, it is still rare for these researchers to investigate the relationship between knowledge-based HRM practices, intellectual capital, and innovation performance in the health sector, especially hospitals, such as in government12 , companies13 , SMEs 14 , banks 15 and in manufacturing company 16 .
Based on this, the author wants to explore the relationship between knowledge-based HRM practices, intellectual capital, and innovation performance in the health sector, especially private hospitals, with a main focus on employees who have high positions such as hospital directors, deputy hospital directors, and hospital managers.The purpose of this study is to identify the effect of knowledge-based HRM practices on innovation performance through intellectual capital as well as the direct effect between each variable on high-ranking private hospitals.Intellectual capital in this study will be described as human capital, structural capital, and relational capital.This research concept is inspired by the concept of research conducted by Kianto et al. 17 .Furthermore, for business practitioners, especially the health sector, this research offers an understanding of how organizational knowledge in hospital HRM management can be used to improve intellectual capital and innovation performance of the hospital.

RESEARCH METHOD
The method used in this research is quantitative research.This method aims to explain the influence or relationship between the variables proposed through hypothesis testing.The variables in this study are knowledge-based human resource management, intellectual capital (human capital, structural capital and relational capital) as endogenous variables and innovation performance as exogenous variables.This study uses a Likert scale with a value of 1 (strongly disagree/STS) to 5 (strongly agree/SS) 18 .Furthermore, this study uses several theories to measure the variables used.The knowledge-based HRM practice variable uses 10 statements that adopt the theory from Hussinki  et al. (2020).Measurement of human capital uses 10 statements that use the theory of Baron 19 .
Structural capital assessment uses 10 statements that adopt from Marr's theory 20 .The total measurements amounted to 50 statements, for more details can be seen in appendix 2 (operational definition of variables).
This study employed the purposive sampling method.The population of this study were leaders/managers in private hospitals in Jabodetabek.Moreover, samples of this study were determined using the non-probabilty sampling technique.Respondent criteria were employees who work as hospital directors / deputy hospital directors / hospital managers in private hospitals in Jabodetabek and work more than 3 years.Data collection were conducted in 3 months from October to December 2022 by distributing questionnaires online through the Google Form application.This research analysis method uses SPSS 25 and SEM Lisrel 8.80 applications.The use of SPSS using confirmatory factor analysis for validity testing by looking at the Kaiser-Msyer-Olkin measure of sampling (KMO) value and measures of sampling adequacy anti image matrix correlation (MSA), provided that it is valid if the KMO value and measures of sampling adequacy anti image matrix correlation (MSA) with a minimum limit value of 0.5 to 0.9 with 1 component matix.Furthermore, a reliability test is carried out provided that the Cronbach alpha value is> 0.6.Meanwhile, SEM Lisrel serves to test the proposed hypothesis 21 .
After distributing the initial questionnaire (pretest) to 30 respondents, there were several invalid statements, such as HR7, HR10 on the knowledge-based HRM practice variable, HC10 on the human capital variable, SC3 on the structural capital variable, R1 on the relational capital variable, and IP1 on the innovation performance variable, so that the total statements in this study were 44 items.Based on theory, the minimum total number of respondents needed in this study is 220 responden.

Relationship between Knowledge-Based HRM and other variables
Human capital is an important asset in an organization that can be developed through increasing knowledge.HRM practices such as placing employees in appropriate positions, training, and empowerment are directly related to increasing the company's human capital 22 .Knowledge possessed by organizations can be used to improve the quality of their intellectual capital 23 .In addition, knowledge-based HRM practices contribute to determining the level of relational capital.The relationship network (Figure 1) can be a way for organizations to gain and share knowledge from external resources, where that knowledge will be used to improve innovation in the future 24 .Not only that, quality human capital is certainly able to build quality relationship structures and networks as well, and this will have a positive impact on the shelter organization 25 .Based on those findings and the theoretical basis outlined earlier, the following hypothesis is formulated :

RESULT AND DISCUSSION
Based on the distribution of questionnaires conducted online through google form, 221 respondents were collected in accordance with the predetermined criteria from 81 private hospitals in the Jabodetabek area.From the data obtained, female respondents were 74%, and men were 26%.Furthermore, based on length of work, the most respondents were employees who had worked for more than 20 years as many as 48% and the least as many as 14% were employees who worked for approximately 3 to 10 years.Meanwhile, based on position, the largest number of respondents was the deputy director of the hospital as much as 45.
All variables in this study are declared valid because they have a loading factor value of more than 0.50.Furthermore, the reliability test results will be reliable if they have a construct reliability value> 0.60 and a variance extracted value> 0.50 (Hair et al., 2014).The results of the reliability test also have good results, where the construct reliability (CR) value of knowledge-based HRM practice (HR) is 0.94, human capital (HC) is 0.95, structural capital (SC) is 0.96, relational capital (RC) is 0.96, and innovation performance (IP) is 0.93.The value of CR > 0.90 means that there are significant influence of independent variable (X) to the dependent variable (Y).Furthermore, the variance extracted (VE) value on knowledge-based HRM practice (HR) is 0.65, human capital (HC) is 0.67, structural capital (SC) is 0.74, relational capital (RC) is 0.75, and innovation performance (IP) is 0.60.Furthermore, the results obtained from the structural test by looking at the R2 value in each equation, namely: the first result, the human capital (HC) variable is influenced by knowledge-based HRM practice (HR) with an R2 value of 0.54.So, it can be interpreted that 54% of the human capital (HC) variable can be explained by the knowledge-based HRM practice (HRM) variable, the remaining 46% is influenced by other variables that are not in this study.The second result, the structural capital (SC) variable is influenced by knowledge-based HRM practice (HR) and human capital (HC) with an R2 value of 0.51.So, it can be interpreted that 51% of the structural capital (SC) variable can be explained by the knowledge-based HRM practice (HRM) and human capital (HC) variables, the remaining 49% is influenced by other variables that are not in this study.The third result, the relational capital (RC) variable is influenced by knowledge-based HRM practice (HR) and human capital (HC) with an R2 value of 0.00048.So, it can be interpreted that 0.48% of the relational capital (RC) variable can be explained by the knowledge-based HRM practice (HRM) and human capital (HC) variables, the remaining 99.52% is influenced by other variables that are not in this study.The fourth result, the innovation performance (IP) variable is influenced by human capital (HC), structural capital (SC), relational capital (RC) and knowledge-based HRM practice (HR) with an R2 value of 0.49.So, it can be interpreted that 49% of the innovation performance (IP) variable is influenced by human capital (HC), structural capital (SC), relational capital (RC), and knowledgebased HRM practice (HRM), the remaining 51% is influenced by other variables that are not in this study.In the model fit test, the analysis results show that there are still several items with a good fit level such as Chi Square, ECVI, AIC and CAIC, Fit Index, and RMSEA.Furthermore, there are marginal fit items, namely Critical N and Goodness of Fit. which can be seen in appendix 6.The following research results are depicted in the T-Value diagram.

Analysis of the Role of Mediating Variables
According to Judd and Kenny (1981), mediation is said to be successful if the mediating variable can be influenced by the independent variable, and has an influence on the dependent variable.Furthermore, they also explain that if the independent and dependent variables also have a direct relationship, besides having to go through the mediating variable, this relationship can be said to be partial mediation.The first mediation analysis, namely human capital (HC), was partially successful in mediating the relationship between knowledge-based HRM practice (HR) and structural capital (SC), because human capital (HC) can affect structural capital (SC) with a T-value of 3.66 (>1.96), besides that, human capital (HC) can also be influenced by knowledge-based HRM practice (HR) with a T-value of 9.67 (>1.96).With this it can be said if H10 is accepted.
The second analysis, human capital (HC) was not partially successful in mediating the relationship between knowledge-based HRM practice (HRM) and relational capital (RC), because human capital (HC) cannot affect relational capital (RC) with a T-value of 0.22 (<1.96), although human capital (HC) can be influenced by knowledge-based HRM practice (HRM) with a T-value of 9.67.With this it can be said that H11 is rejected.The third result, human capital (HC) is partially successful in mediating the relationship between knowledge-based HRM practice (HR) and innovation performance (IP), because human capital (HC) can affect innovation performance (IP) with a T-value of 3.55 (>1.96), in addition, human capital (HC) can also be influenced by knowledgebased HRM practice (HR) with a T-value of 9.67 (>1.96).With this it can be said if H12 is accepted.
The fourth result, structural capital (SC) is partially successful to mediate the relationship between knowledge-based HRM practice (HRM) and innovation performance (IP), because structural capital (SC) can affect innovation performance (IP) with a T-Value of 3.33 (>1.96), in addition, structural capital (HC) can also be influenced by knowledge-based HRM practice (HRM) with a T-Value of 5.70 (>1.96).With this it can be said if H13 is accepted.The fifth result, relational capital (RC) cannot partially mediate the relationship between knowledge-based HRM practice (HR) and innovation performance (IP), because knowledge-based HRM practice (HR) cannot affect relational capital (RC) with a T-Value of -0.02 (<1.96), although relational capital (RC) has a positive effect on innovation performance (IP) with a T-Value of 3.31.With this it can be said that H14 is rejected.

Hypothesis
Hypothesis First result shows a positive effect of knowledge-based HRM practices on human capital.This finding is consistent with the results of subsequent findings which both show the effect of knowledgebased HRM practice positively on improving human capital 26 .Knowledge-based HRM practices that are well utilized by hospital officials, especially directors, deputy directors, and managers in managing employees, will certainly have a good impact on themselves, the employees, and the hospital.Employees will be encouraged to make themselves better and have the potential to dedicate themselves to the hospital, inseparable from the success of their leaders in designing the right management strategy, of course by utilizing existing knowledge27 .Here, it is evident that the intervention of hospital management to pay attention to all kinds of needs and needs of existing resources, especially in human capital, can create high potential employees.In this case, both directors, deputy directors, hospital managers will be happy to provide dedication and maximize the potential of their knowledge, in order to participate in building and developing the hospital where they work.This can happen, because they feel that the hospital where they work gives them support, space, facilities, and trust to contribute in managing the hospital.
Further findings prove that knowledge-based HRM practice also has a positive impact on structural capital.This result supports previous research which also found a positive relationship between knowledge-based HRM practice and structural capital28 .Hospitals that have a good basic concept in managing their resources, of course, will be in line with the potential resources to be obtained.Starting from the recruitment process, positioning, to the development of its employees, which is very carefully designed by hospital management, it is able to build a strong structure or foundation for the management itself.In this case, respondents indicated that the hospital's HRM practices, which are based on knowledge in processing existing resources, will automatically build infrastructure and information systems both tangible and intangible such as management policies, operational activities, and qualified hospital information resources.This result shows that respondents can feel that the hospital supports them with all the facilities from its intangible assets such as hospital policies, facilities, space, and all kinds of information needed by them to develop their potential, so that they are able and confident in designing and implementing their strategies in Hospital.
The third result shows that knowledge-based HRM practice does not have a positive influence on relational capital.This finding implies that there is more than just knowledge for hospital directors, deputy directors, and managers to build and maintain good relationships with stakeholders in the hospital, either internally or externally to the hospital where they work.Generally, a director, deputy director, and hospital manager not only establish good relations with employees or members of the hospital organization where they work, but also with the surrounding environment of the hospital or other hospitals.This is done by them, so that they can make consideration and increase knowledge about information updates related to the success of the place where they work.
These officials feel they have an obligation to take part in maintaining the good name and advancing their hospital.For example, they will participate in activities outside the hospital, such as seminars on health-related information updates.These activities are not only a means for them to get the latest information, but also a means for them to build a wider network of relationships.Relational capital can be built by maintaining a network of social relationships.Social relationships in hospitals can also be built between directors, deputy directors, hospital managers and hospital patients through communication, either directly or indirectly 29 .One of them, for hospital directors who are also doctors, will very easily build relationships and good relationships with their patients.It can be during consultation, the health care process, or just a health check.Patients who already trust and are comfortable with the behavior of their doctor, will be happy to have a good relationship with the doctor and automatically the hospital also becomes their priority of choice when they want to do their health care.Knowledge of the organization to improve the performance of the organization as a whole.This research shows that hospital directors, deputy directors, or managers feel confident in their skills in making a policy and business strategy, able to create renewal or innovation in the way they work and the performance of their hospital 30 .The easiest example to see is how they position themselves when interacting with patients, the way they make a new breakthrough for the progress of the hospital such as the ease of administration provided by the hospital to patients, or hospital treatment procedures using the latest system standards that are in effect, either nationally or internationally.
The results further prove that knowledge-based HRM practices have a positive effect on innovation performance.This result is in line with previous findings that found a positive effect of knowledge-based HRM practices on innovation performance 31 .This research shows that knowledgebased HRM practices have a role in influencing the performance of hospital employees and the hospital as a whole.Some forms of knowledge-based HRM practices such as giving special attention to employees who match the recruitment standards, space or opportunities for employees to develop, special time to discuss the need for employee development, are proven to produce a positive impact on employees.In this case, the impact caused by HRM practices for directors, deputy directors and hospital managers, is to show their dedication to participate in building innovations that will be applied in hospital performance.The behavior and enthusiasm shown by leaders can be a motivation for employees to work better.The results of these innovations will appear in the increase in the number of potential employees and the number of patients who entrust their health, as well as the excellence of hospitals recognized by the community 32 .
The next result proves that human capital cannot mediate the relationship between knowledgebased HRM practices and relational capital.This result is different from the study of Kianto et al.  (2017) which shows that human capital successfully mediates the relationship between knowledgebased HRM practices and relational capital.This study reveals that it takes more than just HRM practices and human capital to build relational capital in a hospital.To be able to understand the characteristics of patients and other stakeholders both inside and outside the hospital, respondents and hospitals need skills in building a good network of relationships 33 .The social relationship that exists between the hospital and patients or other stakeholders will certainly have a positive impact on the hospital's relational capital.This statement is supported by the results of a positive relationship that exists between social relations and relational capital.
Hospital directors, deputy directors, and managers feel supported, as well as free space to develop and apply their skills for the hospital.That way, they will be encouraged to maximize all their abilities with existing facilities to create an update, such as creating new standards to develop employee potential, the way they carry out health procedures, and so on.These updates will later lead to innovation performance, either for themselves, their employees, or even the overall performance of the hospital.Some concrete examples that can be seen from the existence of these innovations, such as the hospital's ability to manage finances well, so that existing funds can be allocated properly, the existence of qualified health facilities and procedures to support hospital operations.As discussed in the previous paragraph, this study succeeded in finding a relationship between knowledge-based HRM practices with structural capital and knowledge-based HRM practices with innovation performance, where appropriate HRM practices can increase the structural capital of the hospital.The qualified structural capital of the hospital can facilitate human resources, in this case, directors, deputy directors, and hospital managers to apply all their skills to advance and develop the potential that exists in the hospital where they work.
Finally, this study did not find that relational capital mediates the relationship between knowledge-based HRM practices and innovation performance.This is because the relational capital of hospitals in this study is not influenced by knowledge-based HRM practices, so relational capital here cannot mediate the indirect effect of knowledge-based HRM practices on innovation performance.However, this study shows the direct effect of knowledge-based HRM practices and relational capital on innovation performance.
Innovations that occur in private hospitals in this study, such as the increase in the number of potential employees, the superiority of the hospital in competition, the existence of the latest health products or services from the hospital can be directly influenced by the right HRM practices in processing hospital resources and the network of good relationships built between the hospital, both hospital officials or hospital employees with all patients and other stakeholders in the internal or external environment of the hospital.With hospital innovation that occurs on an ongoing basis, it will certainly have a good impact on improving the quality of the hospital and also all members of the hospital.Where then also the innovation is able to make many individuals who entrust their health care to the hospital.

CONCLUSION
Based on the overall results obtained, the conclusion is that in the health industry, especially for hospitals, knowledge-based HRM practice is proven to contribute to increasing human capital, structural capital, and innovation capital, but does not play a role in influencing relational capital.Furthermore, human capital has a role in mediating the relationship between knowledge-based HRM practice with structural capital and innovation performance.Structural capital is also proven to successfully mediate the relationship between knowledge-based HRM practice and innovation performance.Further results found an interrelated relationship between human capital, structural capital, and innovation capital.Then, relational capital cannot be influenced by human capital, but relational capital can affect innovation performance.Finally, relational capital cannot mediate the relationship between knowledge-based HRM practice and innovation performance.
The limitation in this study, including only discussing the variables of knowledge-based human management, human capital, structural capital and relational capital on innovation performance.The coverage of the population area is still small, only in private hospitals in the Jabodetabek area, so it still does not represent the number of hospitals in the Indonesian region, and there may be different results if it includes respondents from government-owned hospitals.For future research, it is recommended to expand the population distribution area and also include government-owned hospitals as the population of future research.There may be other factors that are more appropriate if applied as predictors of relational capital other than knowledge-based HRM practice.Further research is recommended to replace knowledge-based HRM practice with knowledge management process, this is in accordance with previous theory which states that knowledge management process has a positive effect on intellectual capital.
Knowledge-based HR practices are crucial factors in strategic human resource management and it depends on specific knowledge needed by organization through employees.They are important for service industries for developing human capital and then exploited by employees with the help of innovation termed as employee innovative behavior.Knowledge-based training and development is important for motivating human skills and therefore it is highlighted that there is dearth of knowledge concerning theoretical contribution for understanding causal linkage such as practices (knowledgebased training and development)-resources (human capital)-uses (individual absorptive capacity)performance (employee innovative behavior).
The managerial implications that can be proposed are the application of HRM practices, such as providing support in the form of facilities and space for employees with high positions such as directors, deputy directors, and hospital managers is considered appropriate, because that way, they will provide their best dedication and skills for the progress of the hospital.Furthermore, intellectual capital in a hospital also needs to be one of the focuses of management attention, because intellectual capital is proven to be able to influence innovation performance.By maximizing the intellectual capital in the hospital, especially the top management, it can make a positive impact on their performance and the hospital as a whole.Abualoush, Shadi, Ra'ed Masa'deh, Khaled Bataineh, and

Figure 1 .
Figure 1.Research Model Constellation H1: Knowledge-based HRM practices have a positive effect on human capital H2: Knowledge-based HRM practices have a positive effect on structural capital H3: Knowledge-based HRM practices have a positive effect on relational capital H4: Human capital has a positive effect on innovation performance H5: Structural capital has a positive effect on innovation performance H6: Relational capital has a positive effect on innovation performance H7: Knowledge-based HRM practices have a positive effect on innovation performance H8: Human capital has a positive effect on structural capital 24 Sladjana Cabrilo, Aino Kianto, and Bojana Milic, 'The Effect of IC Components on Innovation Performance in Serbian Companies', VINE Journal of Information and Knowledge Management Systems, 48.3 (2018), 448-66 <https://doi.org/10.1108/VJIKMS-06-2016-0033>.H9: Human capital has a positive effect on relational capital H10: Human capital mediates the relationship between knowledge-based HRM practices and structural capital.H11: Human capital mediates the relationship between knowledge-based HRM practices and relational capital.H12: Human capital mediates the relationship between knowledge-based HRM practices and innovation performance.H13: Structural capital mediates the relationship between knowledge-based HRM practices and innovation performance.H14: Relational capital mediates the relationship between knowledge-based HRM practices and innovation performance

Figure 1 .
Figure 1.Result Path Diagram T Value Based on the T-Value Path Diagram, the research model testing can be presented as follows :