Linking human capital and enterprise sustainability in Indonesian medium-sized food manufacturing enterprises: the role of informal knowledge sharing practice

Medium-sized food manufacturing enterprises in Indonesia are significant in a number of contexts, in terms of their part to the national production (GDP) and their establishment to the employment. In term of their role to national production, manufacturing sector contributes the highest GDP by 85%. In this sector, food manufacturing subsector contributes the highest GDP. Nevertheless, they faced the same common problems: quality of human capital and sustainability issues. Previous government supplementary programs have been established to expand the human capital capability amongst medium enterprises. Adequate amount of fund has been apportioned to develop human capital, though, the medium enterprises sustainability is still in question. This study proposes and examines the human capital role from informal knowledge sharing perspective. By conducting qualitative approach through interviews to four informants in Indonesian medium-sized food manufacturing enterprises, a set of hypotheses is derived from this study for future quantitative study. This study indicates that human capital traits (diverse education background, employee skills, and employee experience) could leverage the practice of informal knowledge sharing. Constructs such as mutual trust and reciprocal intention could play as mediating variables, and cultural interpretation perspective could act as moderating factor to informal knowledge sharing effectiveness. In final, informal knowledge sharing is indicated to play as moderating variable for human capital policy and practice to support enterprise sustainability.