The Influence of Human Resource Competency in Marketing on Sales Performance of Small and Medium Enterprise Products

Abstract

Small and medium-sized enterprises (SMEs) serve as the economic backbone of Indonesia, yet their sustained success in an increasingly competitive global market heavily relies on the marketing competencies of their human resources (HR). This study examines the influence of marketing-oriented HR competency—defined as a combination of knowledge, skills, and attitudes—on the sales performance of Indonesian SMEs. Employing a quantitative research approach, primary data were collected through a structured survey administered to 100 SME owners and managers across diverse sectors. The relationships between HR competencies and firm performance outcomes were analyzed utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that HR competency exerts a significant and positive impact across four core performance indicators. The strongest effect was observed on sales growth (β = 0.621), followed closely by profitability (β = 0.581), operational efficiency (β = 0.541), and customer satisfaction (β = 0.491). These results indicate that skilled marketing personnel capable of strategic thinking, digital adaptation, and customer relationship management are decisive drivers of top-line growth and sustainable competitive advantage. The study concludes that both SME managers and policymakers must prioritize structured, competency-based marketing training as a strategic investment rather than an operational expense, supporting these efforts with national digital upskilling initiatives to foster long-term enterprise sustainability