International Journal of Business and Management Invention (IJBMI) ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 8 Issue 09 Series. III || September 2019 || PP 96-104 www.ijbmi.org 96 | Page The Influence of Human Resource Management Practiceto Organizational Performance by Mediating Effect of Knowledge Management and Talent Management at Coal Mining Industry in Indonesia Agustinus Setyawan 1 , Syamsir Abduh 2 , Robert Kristaung 3 1 Lecturer of the Faculty of Economics at Batam International University 2 Lecturer of the Doctoral Program in Economics at Trisakti University 3 Lecturer of the Doctoral Program in Economics at Trisakti University Corresponding Author: Agustinus Setyawan ABSTRACT: The purpose of this research is to offer a model that measures the influence of human resource management to organizational performance by mediating effect of knowledge management and talent management at coal mining industry in East KalimantanProvince of Indonesia. The design used in this research is testing hypothesis by using structural equation modeling (SEM) with 127 samples. The data’s were collected from convenience samples of 10 biggest companies of coal mining industry in East Kalimantan Province being represented by assistant manager and above. This research shows a positive and significant relationship between human resource management and knowledge management to organizational performance and also relationship between knowledge management and talent management. This research also proved the mediating effect of knowledge management and talent management to improve the organizational performance but there was no direct affect of talent management to improve organizational performance.The managerial implication of this research is as a guidance for decision maker in the company or manager how to improve organizational performance in coal mining by implementing knowledge management and talent management. The novelty of this research is the research model refines overall understanding of the direct and indirect impact of human resource management to organizational performance on coal mining industry and moderating effect of knowledge management and talent management to improve it. KEYWORDS: human resource management practice, knowledge management, talent management, organizational performance, structural equation modeling, coal mining industry --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 11-09-2019 Date of acceptance: 29-09-2019 -------------------------------------------------------------------------------------------------------------------------------------- I. INTRODUCTION Based on data of the several coal mining areas in Indonesia, East Kalimantan Province is one of the provinces where the contribution of the coal mining industry is excellent, contributing 45.93% of the total Gross Regional Domestic Revenue (GRDP) of East Kalimantan Province (BPS Kaltim, 2018), where production capacity is almost 250 million tons per year which exceeds 50% of the total national production of coal mines in Indonesia amounting to 461 million tons in 2017 (BPS, 2018). The coal mining industry is one of industries that is able to absorb a lot of manpower so that the human resource management strategy becomes very important in improving company performance because it is closely related to business strategy (Gautam, 2015). Dickie & Dwyer (2011) in their research stated that there are several factors that can affect performance in the coal mining industry, such as limited resources, remote locations, the need for special skills, the need for large capital, compliance with political, social and environmental issues. In the coal mining industry, employee productivity (Santra & Bagaria, 2014) as well as efficiency and effectiveness of resources (Nyamubarwa, Mupani, & Chiduuro, 2013) also play a role in improving performance (Santra & Bagaria, 2014) as well as training and technical skills development (Sinha & Jha, 2017). In addition, Zheng, Milia, Rolfe, & Bretherton (2007) explained that the strategy of human resource management plays an important role in business performance in the mining industry. Some literatures have also conducted research on mediating variables that affect the application of human resource management to organizational performance, such as affective commitment (Al-Hawary & Alajmi, 2017), human capital(Wright, Moynihan, & Gardner, 2013) or a combination of both such as Jiang, Lepak, Hu, & Baer (2012) and Raineri (2016). Human capital is an individual representation of someone in terms of knowledge, skills and abilities (Becker, 1964); (Schultz, 1961), so in organizations new knowledge is needed to gain and maintain competitive advantage through knowledge