Authors : Irwan Yantu; Rezkiawan Tantawi; Anisa Malanua

Volume/Issue : Volume 10 - 2025, Issue 11 - November

Google Scholar : https://tinyurl.com/4cr875u9

Scribd : https://tinyurl.com/3y8rp87s

DOI : https://doi.org/10.38124/ijisrt/25nov1439

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Abstract : This study examines the effect of human resource development (HRD) on product innovation advancement among micro, small, and medium enterprises (MSMEs) in the white iron handicraft sector in Ternate City. Using a quantitative approach with simple linear regression analysis, the research investigates whether HRD initiatives such as technical training, skill enhancement, and entrepreneurship development contribute significantly to improving product innovation. The findings reveal that HRD has a positive but not statistically significant effect on product innovation, indicating that current HRD efforts have not yet yielded substantial innovation outcomes. This condition reflects that existing training and capacity- building programs are not yet integrated with the actual production needs and innovation dynamics of MSMEs. The study further highlights that other factors, including managerial capability, technological access, market orientation, and institutional support, play a greater role in determining innovation performance. Based on these findings, it is recommended that HRD programs be designed based on real field needs (demand-driven), supported by continuous mentoring, and strengthened through collaboration between government institutions, universities, and the private sector. Theoretically, this study reinforces the view that HRD is an essential foundation for innovation but requires a supportive ecosystem to produce measurable outcomes. Practically, it provides insights for policymakers and development agencies to formulate more targeted and context-based HRD strategies for MSME innovation enhancement.

Keywords : Human Resource Development; Product Innovation; MSMEs; White Iron Handicraft; Ternate City.

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