Developing human capital 4.0 in emerging economies: an industry 4.0 perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rohit Kumar Singh ◽  
Soni Agrawal ◽  
Sachin Modgil
Keyword(s):  
Human Capital ◽  
Emerging Economies ◽  
Cognitive Skills ◽  
Industry 4.0 ◽  
Competitive Advantages ◽  
Content Type ◽  
Qualitative Survey ◽  
The Right ◽  
Key Resources ◽  
Relationship Of

PurposeThe present study is an attempt of identifying the human capital skills and HR-related challenges faced by top management in the perspective of industry 4.0 in emerging economies. In addition, the importance or key resources related to human assets that help in attaining competitive advantages while adopting newer digital technologies are also identified.Design/methodology/approachFor identifying the dimensions of human capital skills in the perspective of industry 4.0, an extensive review of literature was performed. Along with that, feedback from the expert was used to conceptualize the importance and relationship of the skills in the context of industry 4.0. After that, a qualitative survey was launched and triangulate method was applied for identifying the skills. AHP and DEMATEL was used to analyze the relationship among the skills and subskills and to rank them based on their importance.FindingsThe qualitative survey resulted in skills such as “Cognitive, Emotional and Behavioural skills” and subskills of them. AHP results indicated that “Cognitive skills” was found as the most important skill followed by “Emotional skills” and “Behavioural skills”. In addition to this, DEMATEL was applied for seeking the inter-relationship and identifying the “Cause” and “Effect” relationship of skills and sub-skills.Originality/valueThis study prioritizes factors in a coordinated manner and also finds the relative importance in the context of industry 4.0. It will help further in identifying and deploying human capital with the right skills and will play a significant role at the time of formulating organizational and HR level strategies.

Intellectual capital in family firms: human capital identification and measurement

2015 ◽  
Vol 16 (1) ◽  
pp. 199-223 ◽  
Author(s):  
Enrique Claver-Cortés ◽  
Patrocinio Carmen Zaragoza-Sáez ◽  
Hipólito Molina-Manchón ◽  
Mercedes Úbeda-García
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Family Firms ◽  
Balance Sheet ◽  
Research Approach ◽  
Competitive Advantages ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose – Based on the literature devoted to family firms and the intellectual capital-based view of the firm, the purpose of this paper is not only to identify the most important human capital intangibles owned by family firms but also to show a number of indicators that can help measure them. Design/methodology/approach – A qualitative case-study-based research approach was adopted taking as reference: 25 family firms belonging to different sectors; previous works existing in the literature; and the intellectus model. Findings – The present study identifies ten intangibles associated with the human capital of family firms and shows 60 indicators that can be used to measure them. It additionally provides empirical evidence and gives examples of these intangibles through the analysis of 25 international family firms. Research limitations/implications – The difficulty in collecting all the human capital intangibles of family firms; the problems associated with the creation of accurate indicators; and those specific to the research methodology adopted. Practical implications – Identifying the human capital intangibles of family firms and their indicators can help managers become aware of their importance, and this will consequently help them improve their management. This could be an interesting starting point to value these intangibles in the balance sheet as well as to draw comparisons between family and non-family organisations. Originality/value – The framework provided by family firms sheds light on several intangibles specific to these firms – precisely for their condition as “family” firms. Those intangibles – human capital intangibles being especially highlighted in this study – provide the basis for the achievement of competitive advantages.

Industry 4.0 – organizing routines or innovations?

2018 ◽  
Vol 48 (2) ◽  
pp. 238-254 ◽  
Author(s):  
Maximiliane Wilkesmann ◽  
Uwe Wilkesmann
Keyword(s):  
Work Environment ◽  
Industry 4.0 ◽  
Transport Systems ◽  
Future Research ◽  
Successful Implementation ◽  
Content Type ◽  
Stage Of Development ◽  
The Future ◽  
Control Authority ◽  
The Right

Purpose The rise of new information and communication technologies forms the cornerstone for the future development of work. The term Industry 4.0 refers to the vision of a fourth industrial revolution that is based on a network of autonomous, self-controlling, self-configuring, knowledge-based, sensor-based and spatially distributed production resources. All in all, different forms of the application of the Industry 4.0 concept can be observed, ranging from autonomous logistic transport systems drawn upon the idea of swarm intelligence to smart knowledge management systems. This paper aims to develop a theoretical framework to analyze different applications of Industry 4.0 on an organizing continuum. The general research questions are: What forms of organizing digitalized work lead to the reproduction of routines, and what forms foster innovation within Industry 4.0? The authors thus analyze the consequences of different forms of organizing work on workers’ perceptions and the results of the working process. Design/methodology/approach This paper provides case studies for different stages of the organizing continuum in the context of Industry 4.0. The cases and a further analysis of all 295 funded projects are based on the Platform Industry 4.0 Map, which is part of the Industry 4.0 initiative of the German Federal Ministry of Economic Affairs and Energy and the German Federal Ministry of Education and Research. The consequences for people acting in such organizational and digitally supported structures are discussed. Findings A variety of applications of Industry 4.0 can be found. These applications mainly vary in the dimensions of the degree of formalization, the location of control authority, the location of knowledge and the degree of professionalization. At the right side of the organizing continuum, the digitalization organizes a work environment that supports highly qualified humans. They have broad leeway and a high degree of autonomy to design and create innovative forms of digitalization for tomorrow. At the left side of the organizing continuum, Industry 4.0 structures a work environment with narrow leeway, a low degree of autonomy and a top-down structure of control authority predetermined by digital applications. In this case, employees fill the gaps the machines cannot handle. Research limitations/implications As the paper focuses on Industry 4.0 developments in Germany, the comparability with regard to other countries is limited. Moreover, the methodological approach is explorative, and broader quantitative verification is required. Specifically, future research could include quantitative methods to investigate the employees’ perspective on Industry 4.0. A comparison of Industry 4.0 applications in different countries would be another interesting option for further research. Practical implications This paper shows that applications of Industry 4.0 are currently at a very early stage of development and momentarily organize more routines than innovations. From a practical point of view, professional vocational and academic training will be a key factor for the successful implementation of digitalization in future. A joint venture of industry and educational institutions could be a suitable way to meet the growing demand for qualified employees from the middle to the right-hand of the organizing continuum in the context of Industry 4.0. Social implications Industry 4.0 is designed by men, and therefore, humans are responsible for whether the future work situation will be perceived as supportive or as an alienated routine. Therefore, designers of Industry 4.0, as well as politicians and scientists, absolutely must take the underlying outcomes of digitalized work into account and must jointly find socially acceptable solutions. Originality/value This paper provides a promising avenue for future research on Industry 4.0 by analyzing the underlying organizational structures of digital systems and their consequences for employees. Moreover, the paper shows how Industry 4.0 should be organized to simply reproduce routines or to support innovation.

Working effectively and living contentedly in a foreign country: what human capital do expatriates require and develop?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reimara Valk
Keyword(s):  
Human Capital ◽  
Foreign Country ◽  
The Body ◽  
Future Research ◽  
Global Business ◽  
Line Managers ◽  
Content Type ◽  
Human Capital Model ◽  
Hr Managers ◽  
The Right

PurposeThe purpose of this paper is to explore the human capital (HC) expatriates require and develop during an international assignment (IA) to work effectively and live contentedly in a host country.Design/methodology/approachQualitative research entailing interviews with 78 expatriates and repatriates across the globe, investigating the competencies they developed and the HC they gained during their IAs.FindingsFive interrelated competence clusters were derived: cultural competence (CC); interpersonal competence; intrapersonal competence; global business competence; global leadership competence, each containing competencies crucial for expatriate success.Research limitations/implicationsThis study relied on self-reports by expatriates and repatriates. Future research should also include senior/line managers and chief human resource officers from a range of organizations across the world to gather their assessments on the competencies and HC of expatriates and repatriates.Practical implicationsLine/HR managers can use the designed “Expatriate/Repatriate Human Capital model” to assess an individual's overall readiness and capacity to perform effectively in a foreign country and culture and consecutively identify and select the right candidates to undertake IAs.Originality/valueThis paper contributes to the literature by presenting a HC model called the “Expatriate and Repatriate Human Capital Model; the body of competence”. The model identifies and defines the competencies/knowledge, skills, abilities and other characteristics (KSAOs) required for intercultural effectiveness and expatriate success and serves as a tool for the selection, training, development and performance evaluation of expatriates and repatriates, in order to aid the accomplishment of individual and organizational objectives.

Cognitive abilities and income: preliminary evidence from a developing country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raufhon Salahodjaev ◽  
Ziyodakhon Malikova
Keyword(s):  
Human Capital ◽  
World Bank ◽  
Cognitive Abilities ◽  
Cognitive Skills ◽  
Preliminary Evidence ◽  
Standard Deviation Increase ◽  
Content Type ◽  
The World Bank ◽  
Unconditional Model ◽  
The World

Purpose Related literature finds that human capital proxied by cognitive abilities is an important antecedent of numerous specific life outcomes. The purpose of this study is to extend existing evidence by investigating the link between cognitive skills and income in Tajikistan. Tajikistan is a landlocked low-income country situated in Central Asia. Its population is 9.1 million people and gross domestic product per capita of US$822. According to the World Bank, Tajikistan has made significant progress in decreasing poverty levels from 83% in 2000 to 29.5% in 2017. Design/methodology/approach The data for this study comes from the 2013 Jobs, Skills and Migration Survey conducted by the World Bank and the German Society for International Cooperation. The main explanatory variable of the study is the cognitive abilities index of the respondents. The survey used item response theory (IRT) approach to estimate the ability of respondents. IRT is a method or a set of statistical frameworks, used to explore assessment item data, such as cognitive abilities assessment data. The wage function was estimated using the ordinary least squares method because the results are easier to interpret (Jencks, 1979; Bowles et al., 2001; Groves, 2006). Findings The baseline results are reported in Table 2. The results in Column 1 demonstrated the link between cognitive abilities and income without control variables (unconditional model). As expected, cognitive abilities are positively and significantly related to income (a1 = 0.0715, p < 0.01). The results from the unconditional model suggest that one standard deviation increase in cognitive abilities is associated with a nearly 17% increase in income. Research limitations/implications However, the study has a number of limitations. First, the dependent variable measures the overall income of the respondent, which includes the profit from other businesses. The survey does not provide data on monthly wages of respondents. Second, the sample may not perfectly represent the overall population of Tajikistan. To partially resolve this issue, this paper re-estimated out results for various sub-samples. Another important limitation of this study is the lack of respondent’s family background, which is an important correlate of human capital and income. Practical implications The results in the study offer preliminary evidence on the link between cognitive abilities and income in Tajikistan. However, the results of the study also suggest that both measures of human capital are positively related to income. Therefore, policymakers in Tajikistan should invest greater resources to health care, education and training programs as cognitive skills can be built in particular in the early stages of the life cycle. Indeed, Tajikistan has a significant potential for economic growth model driven by human capital. According to the World Bank, the adult literacy rate in Tajikistan is 100%, which is significantly above of what is observed in other developing countries. This may imply that the human potential in this country is considerable, and further investment in soft and hard skills would have a positive impact on economic growth. Originality/value This paper offers new evidence on the link between cognitive abilities and income, using data from Tajikistan. First, this paper finds that cognitive abilities are positively and significantly correlated with income. Second, this paper finds that this link remains robust even when this paper control for a large set of personal and job-related characteristics. The results from the unconditional model suggest that one standard deviation increase in cognitive abilities is associated with nearly a 17% increase in income.

Human capital and AI in industry 4.0. Convergence and divergence in social entrepreneurship in Russia

2020 ◽  
Vol 21 (4) ◽  
pp. 565-581 ◽  
Author(s):  
Elena G. Popkova ◽  
Bruno S. Sergi
Keyword(s):  
Human Capital ◽  
Social Entrepreneurship ◽  
Industry 4.0 ◽  
Business Processes ◽  
Content Type ◽  
Goods And Services ◽  
The Future ◽  
Social Goods ◽  
Human Intellect ◽  
Intelligent Decision Support

PurposeThe purpose of this article is to determine the future proportion and variants of usage of human intellect and artificial intelligence (AI) in entrepreneurship of industry 4.0 that fits social entrepreneurship the most. It could be convergence (simultaneous utilization during the same entrepreneurial processes with the emphasis on unique features by the terms of the competition) or divergence (usage during different business processes by the terms of labor division).Design/methodology/approachThe authors determine the influence of usage of human capital and AI on the efficiency of social entrepreneurship. The authors identify the perspective directions of usage of AI in social entrepreneurship and evaluate the readiness and interest in the implementation of these directions of concerned parties. The authors also model the optimal proportions and the variant of usage of human intellect and AI in social entrepreneurship in the conditions of Industry 4.0 in the future (until 2030).FindingsIt is found that social entrepreneurship will use the opportunities of Industry 4.0 for optimization of its activities until 2030, but will refuse from full automatization, using human intellect and AI at the same time.Originality/valueThe most perspective directions of application of AI at social companies are a collection of social goods and services, marketing studies and promotion of social goods and services. Neither convergence nor divergence of human and artificial intellectual capital does not fully conform to the interests of concerned parties. The most preferable (optimal) variant of usage of human intellect and AI in social entrepreneurship in the Industry 4.0 is human intelligent decision support.

Financial development, human capital and its impact on economic growth of emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aaqib Sarwar ◽  
Muhammad Asif Khan ◽  
Zahid Sarwar ◽  
Wajid Khan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Financial Development ◽  
Emerging Economies ◽  
Generalized Method Of Moments ◽  
Emerging Countries ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose This paper aims to investigate the critical aspect of financial development, human capital and their interactive term on economic growth from the perspective of emerging economies. Design/methodology/approach Data set ranged from 2002 to 2017 of 83 emerging countries used in this research and collected from world development indicators of the World Bank. The two-step system generalized method of moments is used to conduct this research within the endogenous growth model while controlling time and country-specific effects. Findings The findings of the study indicate that financial development has a positive and significant effect on economic growth. In emerging countries, human capital also has a positive impact on economic growth. Financial development and human capital interactively affect economic growth for emerging economies positively and significantly. Research limitations/implications The data set is limited to 83 emerging countries of the world. The time period for the study is 2002 to 2017. Originality/value This research contributes to the existing literature on human capital, financial development and economic growth. Limited research has been conducted on the impact of financial development and human capital on economic growth.

Diving into emerging economies bottleneck: Industry 4.0 and implications for circular economy

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luciana Oranges Cezarino ◽  
Lara Bartocci Liboni ◽  
Nelson Oliveira Stefanelli ◽  
Bruno Garcia Oliveira ◽  
Lucas Conde Stocco
Keyword(s):  
Supply Chain ◽  
Emerging Economies ◽  
Circular Economy ◽  
Industry 4.0 ◽  
Emerging Countries ◽  
Management Decision ◽  
Public And Private ◽  
Content Type ◽  
Regulatory Policies ◽  
The Relationship

Purpose In this paper, the authors aim to explore the relationship between the concepts of Industry 4.0 and circular economy (CE) as a contribution to the management decision on emerging countries. By analyzing the trends of scientific production to ascertain the interface of both constructs, the purpose of this paper is to identify limitations for Industry 4.0 and CE implementation in Brazil, as well to present an original framework and strategic pathways to overcome limitations for emerging countries. Design/methodology/approach Supported in the Brazilian case, the authors draw a framework using the structuralism approach to indicate pathways for the strategic positioning of emerging economies that consider their limitation and potential for competitive advantage. By understanding country-related limitations such as social and economic contingencies, the authors conceive a structure of implications for Brazil’s capacity to develop CE in the digital era. Findings Results show that Brazil has a reasonable, institutional and stable environment, as well as strong regulatory policies for solid waste that can stimulate CE in the country. However, it requires more communication between actors, especially public and private institutions, performing long-range relationships. Also, the country requires consolidation of industrial policies and investments in the remanufacturing process in the supply chain. Likewise, despite Brazil’s ability to take advantage of CE’s benefits, the country presents a huge lack of qualification to fulfill the competences that the digitization process demands. Economically, Brazil has been fighting against an economic crisis since 2014 that has limited general investments, especially in the industrial sector. Industry presents low performance and decreasing GDP participation, which leads to constant overseas production transfer as a consequence of the workforce’s high costs. Research limitations/implications The authors can affirm that Brazil is far behind developed countries in searching for the capacity to provide CE through technological industrial change. The main problems are related to the lack of articulation of public and private spheres to promote new digital business models. Therefore, the structured framework enables managers and public agents to provide solutions and to properly address supply chain bottlenecks in emerging economies. Originality/value Exploring the relationship between the concepts of Industry 4.0 and CE through the specific lens of the structuralist method, this work can contribute to the management decision on emerging countries, looking into four important perspectives: political, economic, social and technological.

scholarly journals How weaknesses in home country location advantages can constrain EMNE growth

2016 ◽  
Vol 24 (3) ◽  
pp. 249-278 ◽  
Author(s):  
Rajneesh Narula ◽  
Tiju Prasad Kodiyat
Keyword(s):  
Emerging Economies ◽  
Multinational Enterprises ◽  
Home Country ◽  
Competitive Advantages ◽  
Policy Changes ◽  
Systems Of Innovation ◽  
Content Type ◽  
Knowledge Infrastructure ◽  
Knowledge Intensive

Purpose This paper aims to discuss the opportunities and limitations that the location-specific advantages of the home country represent for infant multinational enterprises (MNEs). The systemic weaknesses of the home country can constrain the long-term competitiveness of its firms and, ultimately, the competitiveness of its MNEs. Many emerging countries have a constrained set of location-specific (L) assets from which their firms are able to develop ownership-specific assets. Design/methodology/approach The authors examine data for the case of India, an economy regarded as having considerable potential to expand to knowledge-intensive sectors, using a “systems of innovation” framework, merged with an analysis of L advantages. Findings At the macro level, India’s performance is not different from countries of similar economic structure, and its current pockets of excellence are a reflection of its L assets. The analysis suggests that the failure to foster and upgrade the L assets of emerging economies is likely to stunt the growth of their domestic firms and, ultimately, any new MNE activity in the long-term. Research limitations/implications In the case of India, systemic policy changes are needed to upgrade the knowledge infrastructure and institutions to support a shift in the competitive advantages to new sectors outside existing pockets of excellence. Indian firms are unlikely to be able to rely on the knowledge infrastructure of their home economy and will “exit” the Indian milieu because of weaknesses in L assets, as much as to seek markets and customers elsewhere. There will be few opportunities for new generations of firms to venture abroad from a position of strength, rather than as a means to overcome their home country disadvantages. Originality/value The evidence would suggest that – like other emerging economies – Indian firms are unlikely to be able to rely on the knowledge infrastructure of their home economy and are “exiting” the Indian milieu because of its weaknesses in L assets, as much as to seek markets and customers elsewhere. Most importantly, India faces a potential shortage of skilled human capital in the medium term.

scholarly journals Depreciation of human capital: a sectoral analysis in OECD countries

2019 ◽  
Vol 40 (7) ◽  
pp. 1254-1272
Author(s):  
Valeria Lentini ◽  
Gregorio Gimenez
Keyword(s):  
Human Capital ◽  
Cognitive Skills ◽  
Structural Breaks ◽  
Educational Systems ◽  
Content Type ◽  
Sectoral Analysis ◽  
Potential Benefits ◽  
Capital Depreciation ◽  
Technological Intensity ◽  
High Skill

Purpose The purpose of this paper is to investigate which sectors are more vulnerable to human capital depreciation, with an emphasis on potential differences in skills and in ICT intensities. Design/methodology/approach The authors estimate an extended Mincerian earnings equation based on Neuman and Weiss’s (1995) model using the EU-KLEMS international database for 15 sectors for the period from 1980 to 2005. The authors also test structural ruptures in earnings and human capital depreciation in the labor market per decade controlling by technological intensity. Findings Human capital depreciation ranges from 1 to 6 percent. It is mainly significant in skill-intensive sectors regardless of the sector’s technological intensity. The analysis of structural breaks shows that human capital value indeed changed from decade to decade. It even appreciated in low skill-intensive sectors in the 1980s and in the high skill-intensive during the 1990s. Appreciation though, was mainly skill-biased. Research limitations/implications Information about on-the-job-training and non-cognitive skills that can also affect human capital depreciation are not included due to lack of data. Practical implications To prevent human capital from depreciating in particular sectors and periods educational systems should provide the tools for ongoing lifelong learning at all skills levels. Education is subject to dynamic effects that should be addressed to increase the potential benefits of technological change. Originality/value First, instead of using cross-section analysis which is considered to be a pitfall in studying the depreciation of knowledge, the authors observe its dynamic on a longitudinal basis. Second, the international macro-sectoral approach goes beyond limited micro-sectoral analysis in certain countries.

Business model innovation in small- and medium-sized enterprises

2019 ◽  
Vol 30 (8) ◽  
pp. 1127-1142 ◽  
Author(s):  
Julian Marius Müller
Keyword(s):  
Business Model ◽  
Industry 4.0 ◽  
Business Models ◽  
Customer Relationships ◽  
General Level ◽  
German Industry ◽  
Exploratory Research ◽  
Content Type ◽  
Business Model Canvas ◽  
Key Resources

Purpose Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user. Design/methodology/approach The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users. Findings The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships. Research limitations/implications Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level. Practical implications Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users. Originality/value The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.

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