THE IMPACT OF HUMAN CAPITAL ON SMES PERFORMANCE SUCCESS IN GUANGDONG PROVINCE, CHINA: THE MEDIATING ROLE OF OPEN INNOVATION

Abstract Based on the Resource-Based View Theory, this study aims to examine the relationships between human capital, open innovation, and performance success in SMEs. In the context of Guangdong Province, China, where SMEs play a vital role in the economy, understanding the dynamics of these relationships is particularly important. This study employs a quantitative research design, utilizing data collected from 200 employees working in SMEs in Guangdong. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data, allowing for the examination of complex relationships and the testing of mediation effects. The findings reveal that human capital has a positive and significant impact on SMEs' performance success. Furthermore, open innovation is identified as a mediator in this relationship. This study offers theoretical insights and provides practical guidance for SMEs seeking to improve their performance in a dynamic and competitive business environment.