Abstract
This paper discusses on the human capital concept in Islamic perspectives and its relationship with business firmperformance. There are emphases of Islamic principles on every well-known variables of human capital inconventional views. Muslims owner-managers seem to overlook and forget the importance and valuableelements of Islamic human capital which they rarely adopt in their business operations. Four variables ofexperience, motivation, business training and education are tested using the multiple regression analysis inrelation with firm performance. The study approach is evidence-based positivism and employs quantitativedeductive hypotheses testing methods. The sample size (N) is 140 Muslims’owner-managers of small andmedium enterprises randomly picked from Bahrain. It is found that the three variables of experience, motivationand training are have significant relationship with firms’ growth, while another variable (education) hasinsignificant relationship. This findings may add knowledge to the small and medium firm performanceliterature especially in Islamic views, help policy makers in their decision making and assist theowner-managers to improve their performance.
Highlights
Many organizations nowadays realizes the superiority of Islamic business concepts that need to be adopted in business operation
The research revealed that three variables, namely business experience, Islamic motivation and training; have positively significant influence to the firm performance and consistently aligned with the previous researches in the literature except for Islamic education that has insignificant relationship
The Islamic teaching highlights the importance of human capital development and its relation to business firm performance
Summary
Many organizations nowadays realizes the superiority of Islamic business concepts that need to be adopted in business operation. In Islamic’s approach, personal development is more than just providing options for better material life implemented for an organization since it caters to inner human needs as well (Zangoueinezhad & Moshabaki, 2011). Even, it related to the ethical behaviors actions of employees or owners-managers that need to be considered as it called must be shariah compliance due to certain businesses’ cases and abuses generally www.ccsenet.org/ijbm. Vol 9, No 4; 2014 occured which indirectly affect the organization performance and growth, this study importantly need to be conducted to see the evidence of Islamic principles’ tought of human capital in business operations
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