Beyond Survival: Human Resource Strategies for Sustainable SME Competitiveness in Indonesia Amid A Changing Global Economy and Geopolitical Uncertainty

Abstract

In the context of a rapidly changing global economy, small and medium-sized enterprises (SMEs) are increasingly confronted with multiple challenges, including geopolitical uncertainty, global market volatility, and supply chain disruptions. These conditions, intensified by global conflicts such as the Russia–Ukraine War, have created significant pressure for SMEs, particularly in developing countries like Indonesia. Consequently, SMEs are required not only to survive but also to develop sustainable competitiveness to remain resilient in an uncertain and dynamic environment. This study aims to explore the role of human resource (HR) strategies in strengthening sustainable competitiveness among SMEs in Indonesia amid global economic change and geopolitical uncertainty. This research employs a qualitative approach using a case study design involving several SMEs across different sectors. Data were collected through in-depth, semi-structured interviews with SME owners, managers, and employees, supported by relevant documentation. The data were analyzed using thematic analysis to identify key patterns related to HR practices and organizational responses to global challenges. The findings reveal that human resource strategies play a critical role in enhancing SME resilience and long-term competitiveness. Key strategies include workforce adaptability, continuous upskilling and reskilling, employee engagement, and adaptive leadership. In addition, fostering a learning-oriented organizational culture and promoting innovation are essential in enabling SMEs to respond effectively to global uncertainty. Despite limitations such as resource constraints and informal HR practices, SMEs demonstrate the capacity to adjust and sustain their performance. This study contributes to the literature by providing empirical insights into the integration of human resource management and sustainable competitiveness in SMEs within a developing country context. Practically, the findings offer valuable implications for SME practitioners and policymakers in designing strategic HR initiatives to navigate the challenges of a changing global economy.