Author(s): Muafi, Qurotul Uyun
This study focuses on the importance of Islamic HRM Practices (IHRP) in improving the performance of SMEs Batik, especially environmental, social and religious performance which mediated by organizational learning (OL). The object of study is SMEs batik in Pekalongan, Central Java Province which is well-known as a city that has a batik industry center and has been famous in the world. Pekalongan also has a religious community with the majority of Moslem. They are proven to live side by side harmoniously and can interact in business with Chinese and Arab ethnic. The sample of study is mostly the owners/managers of SMEs Batik which scattered from all SMEs Batik in 18 villages. The purposive sampling technique was conducted after the researcher had done the proportional stage of random sampling by taking 17 SMEs in each district. Completed questionnaires totaled 170 respondents. Statistical techniques using Partial Least Square (PLS). The result explains that organizational learning able to mediate the effect of Islamic HRM practices on environmental, social and religious performance. In improving the environment, social and religious performance SMEs should implement Islamic HRM Practices through mediating organizational learning role.