Local Wisdom-Based Human Resource Competence and Employee Performance: Service Quality Mediation and Digital Literacy Moderation in Alor Tourism

Abstract

Purpose: This study examines whether local wisdom-based human resource (HR) competence enhances employee performance in tourism services in Alor Regency, while investigating the mediating role of service quality and the moderating role of digital literacy. Research Method: Data were collected through a structured survey of 129 employees working in tourism service businesses in Alor Regency. The hypothesized relationships were tested using path analysis with Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0. Results and Discussion: The findings indicate that local wisdom-based HR competence has a positive and significant effect on employee performance. Service quality significantly mediates this relationship, suggesting that culturally grounded competencies translate into superior employee performance partly through enhanced service delivery. Digital literacy significantly moderates both the relationship between local wisdom-based HR competence and employee performance and the relationship between competence and service quality, indicating that digital capabilities amplify the value of culturally embedded competencies. Implications: Tourism organizations should integrate local cultural values with digital capability development to strengthen employee performance and service quality. Originality: This study integrates indigenous/local wisdom, service quality, and digital literacy into a unified HR-performance framework, providing empirical evidence from the under-researched tourism context of Alor, Indonesia.