The Effect of Human Resource Quality and Financial Literacy on Financial Performance through Financial Management as an Intervening Variable (Study in Sharia Cooperatives in Mataram City)

Abstract

Purpose — This study aims to determine the effect of human resource quality and financial literacy on financial performance through financial management as an intervening variable in Sharia Cooperatives in Mataram City.

Method — This study uses a quantitative method descriptive approach. The population in this study is unknown, the formula used to determine the sample size is the Lemeshow formula so that the sample size is 100 employees. The sampling technique used non probability sampling technique. The data analysis used is SmartPLS 4.0 with the SEM (Structural Equation Modeling) analysis method.

Result — The results of this study are 2 kinds, namely direct and indirect effects. The direct effect is that the quality of human resources has a positive and significant effect on financial management, financial literacy has a positive and significant effect on financial management, financial management has a positive and significant effect on financial performance, the quality of human resources has no positive and significant effect on financial performance, financial literacy has a positive and significant effect on financial performance. The indirect effect is that the quality of human resources has a positive and significant effect on financial performance through financial management as an intervening variable, financial literacy has no positive and significant effect on financial performance through financial management as an intervening variable.

Novelty — This is the first research that add financial management as an intervening variable on sharia cooperatives in Mataram City.