Author(s): Sapta Rini Widyawati, Pande Ketut Ribek, Ni Luh Gede Putu Purnawati, I Wayan Gede Antok Setiawan Jodi, Tiksnayana Vipraprastha, I Made Surya Prayoga
The role of HR is not only to adjust its activities to business demands, namely just carrying out daily operational tasks, but also to be able to build the formulation and implementation of HR competitive strategies within a company. The purpose of this study was to determine the effect of the HR system on the competitive advantage of employees at SMEs in Bali, by including the internal business process perspective as a mediating variable. The sample in this study used SMEs employees in 9 (nine) regencies in Bali, totaling 270 employees. The analytical tool used in this study is PLS-SEM. The results showed that the HR system had a positive and significant effect on the internal business process perspective and administrative expert. The internal business process perspective is able to mediate the influence of the HR System on expert administrative on SMEs in Bali.