The “Butterfly Effect” in Strategic Human Capital: Mitigating the Endogeneity Concern About the Relationship Between Turnover and Performance 1

2021 ◽  
Author(s):  
Ithai Stern ◽  
Xin Deng ◽  
Guoli Chen ◽  
Huasheng Gao
Keyword(s):  
Human Capital ◽  
Strategic Human Capital ◽  
Butterfly Effect ◽  
And Performance ◽  
The Relationship

Resources for What? Understanding Performance in the Resource-Based View and Strategic Human Capital Resource Literatures

2021 ◽  
pp. 014920632110031
Author(s):  
Robert E. Ployhart
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Research Needs ◽  
Resource Based View ◽  
Strategic Human Capital ◽  
Specific Performance ◽  
Collective Performance ◽  
And Performance ◽  
Performance Behavior ◽  
Management Scholarship

Barney’s presentation of the resource-based view (RBV) profoundly shaped the trajectory of management scholarship. This article considers the RBV’s impact specifically on the field of strategic human capital resources. Although Barney is still highly relevant, I suggest that research has not sufficiently appreciated the role that individual and collective performance behavior and outcomes play in linking human capital resources to competitive advantage. An alternative, what might be called RBV2.0, posits that research needs to recognize that human capital resources are distinct from performance behavior and outcomes. Such an observation raises the question, “Resources for what?” Answering this question leads to several important insights. First, a given type of human capital resource is only important to the extent it is related to performance behavior and outcomes that contribute to competitive advantage. Second, performance behavior is largely strategy-specific and thus firm-specific. Third, firm specificity is not a characteristic of human capital resources but rather a function of the proximity of the resource to firm-specific performance behavior and outcomes. Consequently, “Performance” is the answer to the question, “Resources for what?” This emphasis on understanding human capital resource-performance relationships adds considerable precision into the RBV, helps resolve puzzles in the strategic human capital literature relating to firm specificity and performance mobility, and promotes a deeper understanding hiding latent within Barney’s original view.

scholarly journals Examining the Relationship between HRM Practices and Organizational Commitment: An Empirical Study in Select Higher Educational Institutions

2018 ◽  
Vol 7 (1) ◽  
pp. 67-70
Author(s):  
Umar Mufeed ◽  
Saurav Kumar
Keyword(s):  
Human Capital ◽  
Organizational Commitment ◽  
Empirical Study ◽  
Organizational Performance ◽  
Critical Role ◽  
Educational Institutions ◽  
Hrm Practices ◽  
And Performance ◽  
The Relationship ◽  
Vital Factor

Human capital is recognized as a vital factor in contributing towards organizational performance and in this competitive and knowledge driven economy play a critical role for the success and survival of their institutions. Organizations irrespective of their nature and size have realized that capable and effective human resource acts as a strategic advantage over its competitors provided employees are committed towards their organizations. In this respect HRM practices have a significant role in enhancing employee commitment as it leads in improving their morale and performance. Keeping this in view, the present paper is aimed to examine the relationship between HRM practices and organizational commitment in sample select four educational institutions. It is also aimed to examine the effect of HRM Practices on organizational commitment. The findings of the study revealed that there exists a positive and favourable relationship between HRM practices and Organizational commitment. Moreover, the study found that HRM practices significantly influences Organizational commitment among employees. The study suggests that HR practitioners need to relook at HRM practices for increasing employees’ commitment in sample select institutions.

scholarly journals Achieving innovative firm performance through human capital and the effect of social capital

2020 ◽  
Vol 15 (2) ◽  
pp. 326-344
Author(s):  
Sarminah Samad
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Firm Performance ◽  
The Past ◽  
Research Fields ◽  
Innovative Firm ◽  
Overall Performance ◽  
And Performance ◽  
The Relationship

AbstractFor the past decade, human capital has been recognized as one of the crucial assets of any firm’s overall performance. Previous studies widely advocated a linear link between human capital and innovative firm performance, arguing that there are a variety of factors to examine if the relationship between human capital and innovative firm performance is to be properly understood. The focus of this study was to examine the effect of social capital on the relationship between human capital and innovative firm performance. Specifically, it examined the relationship between human capital and social capital and between human capital and innovative firm performance. It also examined the relationship between social capital and innovative firm performance. A total of 294 questionnaires were obtained from managerial staff in automotive companies in Malaysia and the data was analysed using the Partial Least Squares (PLS) test. The results indicated a direct effect between human capital and innovative performance. It was found that human capital is significantly related to social capital and that there is a significant relationship between social capital and innovative firm performance, indicating the ability of social capital to improve innovative firm performance. Finally, it revealed that innovative firm performance could be achieved by human capital through the role of valuable social capital and that good innovative firm performance leads to more prudent and sustainable organisations. The results provide pertinent implications for academia, policymakers and market players while also contributing to the research fields of strategic management, human capital, social capital and performance.

scholarly journals Managerial Perception of Human Capital, Innovations, and Performance: Evidence from Banking Industry

2021 ◽  
Vol 32 (5) ◽  
pp. 446-458
Author(s):  
Nela Milosevic ◽  
Marina Dobrota ◽  
Veljko Dmitrovic ◽  
Sladjana Barjaktarovic Rakocevic
Keyword(s):  
Human Capital ◽  
Banking Industry ◽  
Multiple Regression Model ◽  
Bank Performance ◽  
Two Phase ◽  
Bank Management ◽  
General Managers ◽  
Managerial Perception ◽  
And Performance ◽  
The Relationship

This paper aims to examine the relationship between the managerial perception of human capital, innovations, and bank performance. We specifically sought to examine the influence of human capital on bank performance, by introducing the factors of innovation speed and quality. The study was taken in the Serbian banking industry, with the focus on the perception and the viewpoint of CEOs and general managers of different departments. We used a two-phase survey to design the questionnaire and the correlation and regression analyses to examine our hypotheses. Our findings propose that, from managers’ perspective, human capital is critical to the success of banks, and that innovation speed is more influential than its quality. The backward multiple regression model shows that human capital and innovation speed account for 67.5% of the variability of the bank performance. The findings of this research can contribute to bank management policies by revealing how to enhance bank performance by focusing on human capital and innovation agility and readiness. The proposed research model could potentially be implemented in other sectors and industries to hopefully endorse the significance of the detected relationships.

Linking Human Capital Resourcing Practices and Performance of Financial Cooperatives in Kenya: Does Presence of Formal Human Resource Department Matter?

2019 ◽  
Vol 44 (2) ◽  
pp. 148-167
Author(s):  
Mbithi Mutua
Keyword(s):  
Human Capital ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Two Dimensions ◽  
Financial Cooperatives ◽  
Human Resource Department ◽  
Key Drivers ◽  
And Performance ◽  
The Relationship ◽  
Labour Turnover

Financial cooperatives are collectively one of the key drivers of Kenyan economy. Thus, this research sought to investigate the relationship between human capital (HC) resourcing practices and performance of these organizations. Performance as the dependent variable was conceptualized to have two dimensions, financial and non-financial. Data was collected from 340 financial cooperatives within Nairobi County. Simple random sampling technique was used in selecting organizations from where data was collected. Both interview and questionnaire methods were used to collect qualitative and quantitative data, respectively. The findings indicated that presence of formal HR department within an organization leads to better HC resourcing practices as compared to a situation where there is no formal HRM department. The study found a significant relationship between HC resourcing practices and performance of financial cooperatives. Further, the study recommends those organizations without formal HRM departments to create them. Additionally, so as to enjoy higher levels of performance and reduce labour turnover, financial cooperatives need to improve their HC resourcing practices.

INTELLECTUAL CAPITAL, INNOVATION, AND PERFORMANCE: EMPIRICAL EVIDENCE FROM SMEs

2015 ◽  
Vol 19 (05) ◽  
pp. 1550060 ◽  
Author(s):  
KARL-HEINZ LEITNER
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Product Innovation ◽  
Positive Impact ◽  
Joint Effect ◽  
Structural Capital ◽  
Long Run ◽  
Negative Effect ◽  
And Performance ◽  
The Relationship

This research paper examines the relationship between intellectual capital, product innovation and performance based on a study of Austrian firms covering a 10-year period. It is argued that intellectual capital enhances a firms ability to successfully realise innovations and thus contributes positively to its performance. Our study found that human capital and structural capital were both significantly associated with performance in product innovating firms, but that each had a different impact on this performance. While human capital had a positive impact on profitability and growth in the long run, contrary to expectations, structural capital had a negative effect on profitability and growth indicating that apparent strength can turn into a weakness over time. In addition, the study found that human capital and structural capital had no joint effect on the performance of product innovating firms.

Managing Human Capital

2015 ◽  
Author(s):  
David J. Ketchen ◽  
T. Russell Crook ◽  
Samuel Y. Todd ◽  
James G. Combs ◽  
David J. Woehr
Keyword(s):  
Human Capital ◽  
Indirect Effects ◽  
Management Practices ◽  
Direct And Indirect Effects ◽  
Impact Performance ◽  
Strategic Resources ◽  
Hr Management ◽  
Strategic Human Capital ◽  
And Performance ◽  
The Impact

This article explores human resource (HR) management and its interrelationship with strategic human capital and performance. Drawing on data from 158 studies of human capital, the authors consider how synchronized systems of HR management practices affect human capital and how individual practices impact performance. The authors also look at the impact of synchronized systems of practices on performance in relation to human capital and existing resources. The authors describe resource-based theory that explains performance differences and how firms manage their strategic resources to enhance performance. Finally, the work compares the direct and indirect effects of HR practices and systems on performance.

scholarly journals THE IMPACT OF INTELLECTUAL CAPITAL ON FIRM PERFORMANCE IN MALAYSIA

2019 ◽  
Vol 2 (1) ◽  
pp. 9-18 ◽  
Author(s):  
Ahmad Ibn Ibrahimy ◽  
Karthyainee Raman
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Return On Assets ◽  
Structural Capital ◽  
Capital Efficiency ◽  
And Performance ◽  
Using Data ◽  
The Impact ◽  
The Relationship

The purpose of this study is to investigate the relationship between intellectual capital and performance of the companies listed in Bursa Malaysia. Using data drawn from 35 companies listed in Bursa Malaysia for the period of 2008 to 2017, regression model is constructed to examine the relationship between the components of intellectual capital, which are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE), and the performance of the companies measured using the variable Return on Assets (ROA). Data collected are analyzed using statistical software EViews and the outcome has been interpreted according to the statistical rule. As a result, the overall outcome can be concluded that Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE) indicate positive relationship for influencing the performance of the companies listed in Bursa Malaysia. Additionally, Human Capital Efficiency (HCE) shows a negatively weak relationship with firm performance.

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