The Competitive Advantage of Small Industry Batik

The effect of human capital and competitive advantage has empirically resulted in varied studies with regards to industry or service sectors as the object of the study. Human capital on one side directly affects the competitive advantage in addition to giving an effect to the competitive advantage mediated by organizational culture variable on the other side. Regarding this condition, this study aims to investigate the effect of organizational culture mediation towards the correlation between human capital and competitive advantage in small industry batik Trusmi. 200 batik makers located in Trusmi, Cirebon, Indonesia were selected as respondents of the study. They consisted of 131 males and 69 females dominantly age 41 to 60. Correlation and regression analysis were employed as methods of the study. It can be concluded based on the regression test on human capital and competitive advantage variables, and on the presence of organizational culture as mediator variable that there is a significant correlation between human capital and mediator variables (organizational culture), and competitive advantage variable altogether. It shows that there is no a direct effect of human capital variable toward competitive advantage variable.     Keywords: competitive advantage, human capital, organizational culture, small industry batik, intervening variabl