THE INFLUENCE OF HARD SKILLS, SOFT SKILLS AND KNOWLEDGE MANAGEMENT ON EMPLOYEE INNOVATION MEDIATED BY LEARNING ORGANIZATIONS IN SMALL BUSINESSES (UK) IN KENDARI CITY, SOUTHEAST SULAWESI PROVINCE

Abstract This study aims to thoroughly analyze the influence of hard skills, soft skills, and knowledge management on employee innovation, with organizational learning serving as a mediating variable within small businesses in Kendari City, Southeast Sulawesi Province. Data were meticulously obtained from the Central Statistics Agency and various other credible sources, highlighting an alarming rise in the unemployment rate and the need for enhanced hard and soft skills to boost employee competitiveness and innovative capabilities. The study utilized a substantial sample size of 150 employees from diverse small businesses in Kendari City. The research employed Structural Equation Modeling (SEM) as the analytical tool to assess the relationships among the variables. The findings indicate that organizational learning effectively mediates the relationship between hard skills and soft skills on employee innovation. Employees with advanced technical expertise and strong interpersonal abilities are more likely to generate and implement innovative ideas within their work environments. Conversely, while knowledge management exhibited a positive correlation with innovation, its impact was not statistically significant.