Based on structural model evaluation, it can be concluded that both hypotheses are accepted. The path coefficient
value between strategic human resource management and innovation capability is 0.809. It means that both variables
have strong relationship. Furthermore, strategic human resource management can explain 65.5% of innovation
capability. With such results, it can be said that strategic human resource management can be a good predictor for
innovation capability of the firm, as the conclusion of previous study such as Pourkiani et al (2011) which states that
the firm can increase the innovation capability by creating employees who have the knowledge and experience of a
quality of work, motivating them to share knowledge and retain competence employees.