Contribution Of Human Capital Research Articles

Valuing human capital career development: a real options approach

PurposeThere has been a long controversy in the literature on assessing the value of human capital – a long-sought but elusive and challenging task. The ability to quantify flexible human capital (FHC) has been a shortcoming in extant literature. We make a meaningful contribution by showing how real options (RO) methodology can be used to quantify FHC and we provide complementary case study evidence from Fortune 500 “best companies to work for” that the value of employee career development is higher in more volatile sectors in line with real options theory (ROT).Design/methodology/approachThis article provides a prescriptive RO methodology for adopting a more flexible, staged SHRM organizational perspective suitable for uncertain environments, and explores its theoretical and empirical implications through the dual use of RO methodological modelling and multi-case study data involving ten Fortune 500 companies. The case study approach is aimed at creating managerially relevant knowledge. The relevance of our approach to managerial practice is shown through guidelines on how a company like Google might use the RO methodology to estimate the career development option value so as to inform its internal development program for employees to create and capture value.FindingsOur focus is on the staging flexibility in HR as exemplified by the internal career development process. This process can be viewed as a multi-stage (compound) option involving various types of HC uncertainty, HC options, and HR practices. We model staging HR deployment via the option to promote staff employees to middle-level management, itself embedding the option to rise to the top management. To empirically validate our valuation approach, we present case study research that enables quantifying the option value of a career development program and allows assessing how much a mismatch exists in a sample of ten public U.S. companies.Research limitations/implicationsThe overall staging quantification idea is important as it offers guidance as to how to value HR as a sequential investment process under uncertain demand or skill conditions. The analysis is limited to the extent that staged career development might interact with other types of human capital (e.g. switch and learning) options and HR practices (e.g. training). Human resources may also interact with other organizational intangibles, such as brand equity. Our analysis also does not account for psychological considerations from the employees' perspective, such organizational commitment facilitating trust to enable reciprocal commitments, which remains a fruitful subject for future extensions.Practical implicationsROT can provide useful guidance and tools for HR scholars and managers. By keeping tabs on HR-based flexibility value and focusing on the key input variables driving HR flexibility, HR managers can determine the flexibility value unleashed from staging the deployment of HC resources in the face of unanticipated demand and skills shifts.Originality/valueThis is the first paper that attempts to quantify the value of staged career development flexibility using the RO methodology. This article will be cited for its innovativeness in being the first to quantify the value of human capital's contribution to corporate value creation and provide objective evaluation in the context of organizational career-development programs. Besides providing useful insights to scholars, the article also demonstrates how the RO methodology can apply to actual companies and inform managerial practice offering guidelines of relevance to HR practitioners on how to quantify the value of staged HC development in an uncertain environment.

The Contribution of Human Capital and its Policies to Per Capita Income in Europe and the OECD

This paper studies empirically the effect of education policies on human capital and per capita income. The results suggest for European and OECD countries that higher attendance at pre-primary education, greater autonomy of schools and universities, a lower student-to-teacher ratio, higher age of first tracking in secondary education and lower barriers to funding to students in tertiary education all tend to boost human capital through amplifying the positive effects of greater public spending on education. Benefits from pre-primary education are particularly high for countries with an above-average share of disadvantaged students. School autonomy yields high benefits especially in countries where schools are subject to external accountability. From a policy perspective, improving the quality of the labour force and value-for-money of education policies are of utmost importance in the future, especially in European countries facing population ageing and ever increasing fiscal constraints. Prompt policy action is needed given the very long delay with which the full effect of reforms in education policy materialises on human capital and per capita income.

ANALISIS HUMAN CAPITAL READINESS PADA PERUSAHAAN PERDAGANGAN INDONESIA (PERSERO)

This research aims to review the gaps between human capital employed and the actual needs of PT. PPI (Ltd.) in achieving the corporate objectives. The Company is built with the vision and mission that are translated into corporate actions towards the achievement of corporate goals. The company's mission must be communicated clearly to all stakeholders, especially employees, because employees play an important competency for successful mishievin. Through this study, the HR department is expected to be able to measure the contribution of human capital in the process of achieving corporate goals. The measurement is intended to allow the HR department to provide and develop competence in accordance with company requirements, to achieve corporate objectives. The results of this study conclude that the availability of human capital PT. PPI (Ltd.) only reached 65 percent. By that illustrated, the percentage of PT. PPI (Ltd.) doesn’t have the human capital needs in the achievement of company goals, so PT. PPI (Ltd.) needs a strategic initiative to address the inconsistency, which are recruitment and training on the job strategies in the company.

Contribution of Human and Capital on Regional Economic Growth of Sumedang District of Indonesia

This article presents the analysis of the contribution of human capital growth and capital growth to regional economic development of sumedang district. Multiple regression Analysis by OLS model is applied to know the contribution of human growth variable and capital growth variable. While to know influence a number of variables about contribution to Sumedang Regional economic is applied by data times series from the year 1980-2010. This study shows that, human capital growth contribution negatively and insignificantly to the growth of the gross domestic regional product and capital growth has positively and significant influence on Sumedang Regional economic growth.

Role of Human Capital in Economic Growth: A Comparative Study of India and China

Human capital constitutes a significant ingredient of economic growth. As more and more countries are moving on the path of growth and development one needs to explore the contribution of human capital in economic growth. Considering health and education as two components of human capital, the paper attempts to achieve three-fold objectives. First to examine the status of health and education in both the countries for the period 1970-2016, secondly to comprehend the role of public expenditure on health in economic growth and finally to examine the role played by human capital comprising of both health and education component in economic growth of both the nations. To achieve the first objective, the paper attempts to construct the Index of health and education both for India and China, also comparing it with South Asian region. Public health expenditure by government (PHE), out of pocket expenditure (OPE), Life Expectancy (LE) and Access to health care (HC access) are selected as indicators of health while educational attainment at least completed upper secondary, population 25+ (EDU) indicating the access to education, Literacy rate (LR) and number of patent applications by residents (PA) are considered as indicators of education. Both health and education indices are constructed using the Principal Component Analysis (PCA) method. The study examines the causality between the public health expenditure and economic growth for both the countries by deploying the Engle Granger Causality test using the Vector autoregression (VAR) model. Finally, an endogenous growth model is run selecting the appropriate variables, considering health and education indices as inputs. The study observes uni-directional causality between public health expenditure and economic growth, GDP granger causes PHE in both India and China. Both health and education index have positive impact on growth in India however the results of regression depict that the both health and education negatively affect the growth rate in China. The paper holds a great relevance in terms of policy implications highlighting the need for the developing nations to invest in human capital both health and education. It is crucial to comprehend the significance of accessibility of health and education by removing the political economy, making these facilities more inclusive.

Human Capital Development and Economic Growth in Developing Economies

The perceptible contribution of human capital in economic growth in an economy cannot be exaggerated. Human capital is the essential resource needed in every sector of an economy. Unfortunately, for many decades human capital development has been saddled with multifarious challenges that has hampered economic growth in many economies; with less developed economies suffering the effect of poorly developed human capital the most. This study was conducted to investigate the impact of human capital on economic growth in West Africa, specifically Ghana over a period of 40 years. The researchers used secondary data on human capital development and economic growth that was extracted from the economic data of Ghana Statistical Service, the World Bank, journals of economic studies and the Bank of Ghana Research Unit. The researchers applied ordinary least squares regression to estimate the models and also perform data analysis. In the end, it was found out that human capital whether it is developed or under developed has a tremendous impact on the growth of an economy both in the short and long term. The findings of this study hold important policy implications for countries in West Africa, specifically Ghana.

Research on the Contribution of Female Human Capital in Economic Growth in Guangdong Province

This paper uses the statistical data from 1997 to 2015 to calculate the female human capital stock in Guangdong Province, and empirically analyzes the contribution rate of female human capital to Guangdong’s output and its comparison with men. At the same time, it empirically analyzes the contribution of female human capital stocks at different levels to Guangdong’s economic growth, studies the correlation between women’s education levels and economic growth, and examines the differences in the impact of male and female human capital on economic growth. The research results show that female human capital is an important factor affecting Guangdong’s economic growth. Male human capital has a greater impact than female human capital. Female human capital at different educational levels has different effects on economic growth. In order to promote economic and social development, we should increase the awareness of gender equality and strengthen the attention and investment in women’s human capital.

The role of human capital after the crisis in Italy: A regional analysis

In the years of the prolonged post-crisis recession, the well-known North-South divide in Italy has significantly worsened. Several structural weaknesses limit both post-crisis recovery and socioeconomic convergence. A greater understanding of the economic contribution of workers' human capital, which is not fully exploited in Italy, could address the two issues. We analyze the effects of human capital on local economic performance and productivity, along with other socioeconomic variables, controlling for the endogeneity problem. Workers with a better education can promote economic recovery through productivity enhancement in the South, while traditional aspects related to industrialization are significant in the “wealthy North”. However, structural aspects, such as the local financial systems, must be developed to start a path to convergence for the North and the South.

The Contribution of Human Capital in Aggregate and Sectoral Production: Evidence from Pakistan

This article examines the strength of relationship between human capital and production at aggregate and sectoral levels. The study uses an annual data set from 1981 to 2014 taken from Pakistan Bureau of Statistics. The study used aggregate and sector-wise production models and applied augmented Dickey–Fuller (ADF) test to check the order of integration and JJ co-integration. Dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) tests are used to check the consistency of initial findings and the sensitivity analysis is performed in order to check the robustness of results. The study illuminates the impact of human capital on the production of agriculture, industrial and services sectors, and compares the strength of this relationship with the coefficients obtained through aggregate data. The study found evidence of positive human capital contribution in aggregate and sectoral productions; however, its magnitude is found to be similar in the agricultural and industrial sectors which was higher than the magnitude associated with the services sector.

Institutional complementarities between labour laws and innovation

AbstractWe analyse how institutional complementarities between employee representation laws and dismissal restrictions influence aggregate innovation outcomes. We argue that greater employee voice, due to improved employee representation legislations, may spur innovative effort by employees only when shareholders cannot renegotiate ex-ante agreements with workers over revenue sharing, by threatening dismissal. We perform a panel regression analysis, exploiting country-sector panel data over the 1977–2005 period, and find that stronger employee representation laws in the presence of stricter firing restrictions are in fact associated with higher patenting activity. Consistently with our theoretical argument, the magnitude of this empirical relationship is seen to be relatively larger in those sectors where the human capital contribution to production is higher. Implications for the analysis of economic institutions and for legal policy making are proposed.

The contributions of human capital, R&D spending and convergence to total factor productivity growth

The study investigates the drivers of total factor productivity (TFP) growth, covering 99 European regions from 31 countries over the period 2000–13. It shows that human capital endowment had a positive effect upon TFP growth, particularly in advanced regions, but the effect from regions’ own research and development (R&D) expenditures was largely absent. The effects of human capital and R&D on TFP growth varied with the productivity gap. Further, there was a threshold effect in convergence, where stronger TFP growth was associated with both a larger productivity gap and a higher initial level of productivity. Spatial spillover effects had a positive impact upon TFP growth.

Human capital contribution to economic growth in Sub-Saharan Africa: Does health status matter more than education?

This paper revisits the debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education. The study employs a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1980–2008. The empirical results show that the two measures of human capital have positive effects on economic growth, although the contribution of health is relatively larger than the impact of education. This finding emphasizes the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital.

PENDIDIKAN, KESEHATAN DAN PERTUMBUHAN EKONOMI REGIONAL DI INDONESIA: PENDEKATAN MODEL PANEL DINAMIS

This study analyzes the contribution of human capital ie education and health to regional economic growth in Indonesia. This study uses the regional level of the province as the unit of analysis with the timeframe from 2004 to 2014. Development of economic growth model which is a dynamic model becomes a challenge for estimation of regression model, this study uses generalized method of moment (GMM) as an analytical tool to overcome bias Which occurred on the model of economic growth. This study provides empirical evidence on the role of education and health to regional economic growth in Indonesia. In addition, the estimation results also provide empirical results of conditional convergence with the contribution of human capital that is education and health as a determinant of convergence

The Contribution of Human Capital to Analyzing Information in the Competitive Environment as Part of the Competitive Intelligence Process

Like any added-value activity, the human capital plays an essential role in the information analysis from the competitive environment as part of the Competitive Intelligence process. Even if the analysis is carried out with the help of computer and technological means, the major impact on the results of this analysis is the human reason. If the results of the automated analysis show the presence of a pattern and lead to a series of conclusions, the analyst's reasoning, influenced both by previous experiences and the study of the existing factors in the given case, may indicate a completely different set of results. In this activity, qualitative research comes first; technological means will not be able to completely replace human capital. It is true that this increase in the level of technology involvement in the present society is exponential, but we are still far from translating into a computer a specific human, logical, rational thinking based on previous experience. Therefore, the level of employee engagement and training will significantly affect the performance of the firms doing this type of activity. In comparison to other important sectors, such as industry, constructions and even certain services (where technological means have a much more important place, the man being charged only with supervision and ensuring smooth running of the automated process) in the activity involving information analysis in the competitive environment roles are reversed, technology being just a means by which man can carry out this tasks. How to cite: Moraru, A. (2017). The Contribution of Human Capital to Analyzing Information in the Competitive Environment as Part of the Competitive Intelligence Process. Postmodern Openings, 8 (3), 35-45. https://doi.org/10.18662/po/2017.0803.04

ANALISIS HUMAN CAPITAL READINESS PADA PERUSAHAAN PERDAGANGAN INDONESIA (PERSERO)

This research aims to review the gaps between human capital employed and the actual needs of PT. PPI(Ltd.) in achieving the corporate objectives. The Company is built with the vision and mission that aretranslated into corporate actions towards the achievement of corporate goals. The company's missionmust be communicated clearly to all stakeholders, especially employees, because employees play animportant competency for successful mishievin. Through this study, the HR department is expected to beable to measure the contribution of human capital in the process of achieving corporate goals. Themeasurement is intended to allow the HR department to provide and develop competence in accordancewith company requirements, to achieve corporate objectives. The results of this study conclude that theavailability of human capital PT. PPI (Ltd.) only reached 65 percent. By that illustrated, the percentageof PT. PPI (Ltd.) doesn’t have the human capital needs in the achievement of company goals, so PT.PPI (Ltd.) needs a strategic initiative to address the inconsistency, which are recruitment and trainingon the job strategies in the company.

Exploring nurtured company resilience through human capital and human resource development

PurposeThe purpose of this paper is to evaluate the importance and contribution of human capital, combined with human resources and research and development (R&D) measures, to nurturing company resilience as new knowledge and human capital artifices to face challenges derived from globalization, competitiveness, and the knowledge-based economy.Design/methodology/approachBy means of structural equation modeling with latent variables, a new type of synthetic index is developed, with which the evolution and incidence of human capital structure, human resources development, and R&D in the company’s accumulated resiliency can be tested.FindingsThe results indicate a remarkable contribution of human capital to company resilience (standardized path coefficient 0.8365; p<0.0001 and R2=0.7486). Differences in company-nurtured resilience are related to categories such as productivity, products diversification, human capital structure, human resources management, innovation results, technology, and a productive environment.Research limitations/implicationsThe main limitation is that the applied literature on this topic is scarce in economics and focused on company survival.Practical implicationsManagement for resilience requires the development of the ability to balance efficiency in the short term with adaptability in the medium and long term. Recruitment and training and development policies should consider the role of emotions and motivation in creative thinking and innovation.Originality/valueMost research on the topic has been conducted within the ecological resilience approach. The adaptive resilience approach is considered an integrated framework based on the internal perspective of company capabilities, the theory of complex adaptive systems, and the Schultz-Nelson/Phelps view on human capital.

Human Capital and Urban Growth in Italy, 1981-2001

This paper analyses the contribution of human capital, measured using the share of residents holding a college degree, to urban growth, gauged by the growth in employment, between 1981 and 2001. According to our estimates, starting with a ten per cent higher share of college-educated residents was associated with a higher growth in employment in the 0.5-2.2 per cent range. These results hold when considering both the municipal and the local labour market (LLM) levels, and they are robust to a wide set of urban characteristics. Our findings are confirmed using a measure of education dating back to 1931 as an instrument for human capital. Furthermore, we exploit a spatial localization model with human capital premiums to disentangle the estimated effect into two components related to productivity and life quality respectively. We find that productivity contributed to more than 60 per cent of the effect of human capital on urban growth at municipal level, and to over 90 per cent at the wider LLM level.

Forms of Wealth Associated with Attaining Peer Group Net Worth Following Bankruptcy

ObjectivesThis study examines the contribution of general human capital, social capital, and financial management practices to the individual's relative financial well‐being following bankruptcy.MethodsMultivariate logistic regression models were estimated using secondary data from the Survey of Consumer Finances 2004 and 2007.ResultsIndividuals who possess higher general human capital and greater access to social capital are significantly more likely to achieve net worth parity with nonfilers following bankruptcy compared to similar individuals with lower levels of general human capital and social capital.ConclusionHuman and social capital are relatively more important factors contributing to attaining net worth parity with peers following bankruptcy than financial management practices and attitudes when controlling for ownership of protected assets. Congressionally mandated financial management training and counseling would likely have substantially better outcomes on bankruptcy filers’ financial well‐being over the long term if additional human‐capital‐building—and consequently income‐building—programs are integrated into the mandated financial management training.

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

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.

Understanding the contribution of human capital for the competitiveness of Mauritius

The aim of this research paper is to understand the relationship between human development index and competitiveness of Mauritius. Mauritius has performed well (economic growth of more than 3%) despite the global economic recession over the past years. Mauritius ranks high in the global competitiveness index and human development index. The findings illustrate that there is a direct link and correlation between the HDI and the economic growth. The implications are that a country should invest in human capital development for improving economic growth. However, there are so many economic variables that may affect the economic growth and therefore difficult to quantify exactly the extent to which each variable is determinant.