Assessing the Contribution of Human Capital on Business Performance with focus on the IT industry in the Republic of Macedonia

Abstract

This paper presents a research finding on the relationship between human capital and business performance. The objectives of the study were to examine the relationship between human capital and business performance, especially in the IT industry in the Republic of Macedonia. Further, the study determined the contribution of human capital on business performance. The paper examines the most important aspect of human capital that influenced business performance. Data in this study was collected from a sample of 10 IT companies which operate in the Republic of Macedonia. The obtained data were analyzed using SPSS. The research results confirm that human capital aspects are related to business performance. The study revealed that all aspects of human capital contributed significantly to business performance. The findings indicated that human capital aspects of employees’ competency and creativity emerged as the main factor that influenced business performance. This implies that competency and creativity have significantly enhanced the business performance in the IT sector in the Republic of Macedonia.