Human Capital Structure Research Articles

The impact of servitization transformation on the ESG performance of manufacturing firms

In the new era of green and low-carbon economic transformation, servitization transformation enhances the production efficiency and perceptual capabilities of manufacturing firms and offers a novel approach to fulfilling environmental, social, and governance (ESG) responsibilities. This study employs a sample of Chinese-listed manufacturing firms from 2009 to 2021 to provide a theoretical analysis of the intrinsic mechanisms by which servitization transformation impacts ESG performance, including the roles played by total factor productivity, human capital, and firm goodwill. We then empirically examine the impact and mechanisms by which servitization transformation impacts the ESG performance of firms, finding the following. First, servitization transformation significantly improves ESG performance and this conclusion still holds following a series of robustness tests. Second, servitization transformation enhances ESG performance through the following three channels: improving total factor productivity, optimizing the structure of human capital, and accumulating firm goodwill. Third, the ESG performance of state-owned, high-tech, and large firms is more sensitive to servitization transformation. This study enriches and expands the application of servitization transformation research to manufacturing, providing policy insights that would allow manufacturing firms to better fulfill their ESG responsibilities and promote green and sustainable economic development.

Effect of Technological Innovation, Servitisation and Human Capital Structure on Performance in Manufacturing Enterprises

ABSTRACTTo analyse the relationships amongst technology innovation, servitisation, human capital structure and performance in manufacturing firms, a sample of 1247 manufacturing firms listed on the A‐share market in China from 2013 to 2020 were collected. The conclusions are as follows. (1) Technological innovation has positive effect on performance. (2) Service transformation can mediate the effect of technological innovation on performance. (3) Advanced human capital skills can positively moderate the effect of service transformation on performance, whereas advanced human capital education can positively moderate the effect of technological innovation on performance. (4) The effect differs by firm type and location.

HUMAN CAPITAL AND PROFITABILITY: CASE of TURKISH BANKING SECTOR

This study aims to examine the effect of human capital on profitability of Turkish banking sector by a panel data covering 2009.q1-2022.q4. Throughout this aim, a research model based on a dependent variable as return on equity is set up. The independent variable to be focused is the Human Capital Efficiency Coefficient -mostly considered as the most significant sub-coefficient of the Value-Added Intellectual Coefficient Methodology developed by Ante Pulic (2004)- to measure intellectual capital efficiency. Besides, three control variables are included in the model to proxy balance sheet structure, assets quality and liquidity. Levin-Lin-Chu (LLC), Im-Pesaran-Shin (IPS) and Augmented Dickey Fuller (ADF) Fisher panel unit root tests, and Pedroni (1999) panel co-integration test are conducted in the econometric analyses to test the stationarity and co-integration among the series. Long term co-integration coefficients are estimated by Fully Modified Ordinary Least Squares (FMOLS) methodology proposed by Pedroni (2000). The empirical findings indicate the existence of a statistically significant and positive relationship between human capital and profitability; and statistically significant and negative relationships among human capital and assets quality, and human capital and liquidity. Another finding is that there exists no statistically significant relationship between human capital and balance sheet structure.Levin-Lin-Chu (LLC), Im-Pesaran-Shin (IPS) and Augmented Dickey Fuller (ADF) Fisher panel unit root tests, and Pedroni (1999) panel co-integration test are conducted in the econometric analyses to test the stationarity and co-integration among the series. Long term co-integration coefficients are estimated by Fully Modified Ordinary Least Squares (FMOLS) methodology proposed by Pedroni (2000). The empirical findings indicate the existence of a statistically significant and positive relationship between human capital and profitability; and statistically significant and negative relationships among human capital and assets quality, and human capital and liquidity. Another finding is that there exists no statistically significant relationship between human capital and balance sheet structure.

The innovation effect of digital M&As: Evidence from China

Digital mergers and acquisitions (M&As) have gained global momentum. However, whether digital M&As can effectively stimulate corporate innovation awaits further research. This paper evaluates the causal effect of digital M&As on corporate innovation using data from digital M&As and patents of Chinese A-share listed companies. Our findings indicate that digital M&As significantly promote the quantity and quality of acquirers' innovation, which still holds after various robustness tests and exhibits heterogeneity in different dimensions such as transactions, acquirers, and targets. Mechanism tests further reveal that knowledge synergy, financial synergy, and human capital structure upgrading are critical channels through which digital M&As promote the acquirers' innovation.

Government spending efficiency, fiscal decentralization and regional innovation capability: Evidence from China

Improving regional innovation is the key to achieving high-quality development, and regional innovation requires government support. However, a notable research gap exists in studies examining the relationship between government spending efficiency and regional innovation. Based on the panel data of 30 provinces in China from 2000 to 2021, this study verifies the positive impact of government spending efficiency on regional innovation capacity and its mechanism. Notably, the Consumer Price Index has been selected as an instrumental variable through a rigorous theoretical analysis to address the potential endogeneity and ensure the robustness of the findings. The findings also suggest that government spending efficiency can do better in promoting regional innovation capability in higher-investment preference areas, less financial development level regions. Further analysis reveals that human capital and advanced industrial structure play a great channel effect, while fiscal decentralization positively moderates the relationship between government spending efficiency and regional innovation capability. This study deepens our understanding of the impact of fiscal policy on local innovation development from different perspectives. Furthermore, it provides a reference to developing countries on the importance of local government in optimizing regional innovation.

A study on the impact of digital governance on disclosure quality of listed companies

Through empirical analyses, this paper confirms the beneficial influence of digital governance on the information disclosure quality of listed companies. Additionally, it uncovers the intermediary roles played by managerial transaction costs and human capital structure. Furthermore, the study investigates the varying impacts of corporate geographical location and property rights characteristics on the efficacy of digital governance. The findings indicate that digital governance noticeably enhances information disclosure quality, diminishes managerial transaction costs, and refines human capital structure. Moreover, listed companies in the eastern regions and those that are state-owned have experienced more substantial advancements in disclosure quality due to digital governance.

The Effect of Green Innovation Strategies on Firm Internal Operations: Evidence from Human Capital Structure Adjustment

Although prior studies have broadly examined the external economic consequences of corporate green innovation (GI) strategies, whether and how GI strategies influence firms’ internal operations is underexplored. To fill this significant gap, we investigate the effect of GI initiatives on firm human capital structure, as represented by the ratio of salesmen (RSE) and accountants (RAE) to total employees. A higher RSE (RAE) plausibly indicates an enhanced position of salesmen (accountants) in human capital and greater importance that firms attach to their crucial role in improving marketing (reporting). Consistent with GI enhancing consumer purchase willingness, we find that GI lowers RSE. In line with GI reducing financing constraints and firms’ emphasis on high-quality financial reporting, we record that GI decreases RAE. Moreover, such inhibitory effects become stronger when stakeholders’ recognition of GI strategies grows, or when firms ex-ante rely more on marketing (reporting) functions of salesmen (accountants).

Automating efficiency: The impact of industrial robots on labor investment in China

This study examines the impact of industrial robot applications on labor investment efficiency. While previous studies have mainly focused on how industrial robots affect productivity, economic structures, and labor markets, their influence on labor investment efficiency has remained relatively underexplored. Using data from Chinese manufacturing firms, our results demonstrate that the adoption of industrial robots significantly improves labor investment efficiency. This improvement is mainly achieved by optimizing the human capital structure and enhancing capital deepening. We also find that this effect is more pronounced in non-state-owned enterprises, in environments with reduced information asymmetry, and in firms with low R&D investment and labor intensity. Overall, our results highlight the positive effect of industrial robot applications on the efficiency of corporate labor investments from a microeconomic perspective, providing important insights for labor investment decisions and resource allocation optimization.

Digital transformation, management efficiency and excess employees − evidence from Chinese listed firms

Purpose The purpose of this study is to explore the relationship between digital transformation and excess employees. This research investigates the questions of when human−machine synergy can be achieved after a firm goes through digital transformation and whether there will be excess employees in the interim. Design/methodology/approach This paper takes A-share listed companies as research object in the period of 2011−2020 and a total of 24,718 samples are obtained. Hypothesis testing and regression analysis are performed in STATA. Findings This paper finds a human−machine mismatch in the short term, as evidenced by an increase in the rate of excess employees; however, with the progress of digital transformation, it can drive the achievement of human−machine synergy in the long term, and management efficiency plays a mediating role in this process. Further research showed that the effects of digital transformation on the number of employees, revenue generation per capita and profit generation per capita varied in both the short and long term. In addition, the characteristics of the company affect the relationship between digital transformation and excess employees. Originality/value This paper contributes to the understanding of the impacts of digital transformation on the human capital structure of companies at a micro level. It also provides insights into how to improve human capital demand structure through digitalization, thus providing insights into labor market changes.

Population aging and corporate human capital restructuring

Herein, we examine how population aging influences corporate human capital structure adjustment. The results shows that population aging can upgrade corporate human capital structure, with artificial intelligence as a potential mechanism at work. These results remain valid under various robustness and endogeneity analyses.

Human Capital Structure and Innovation Efficiency Under Technological Progress: Evidence from China

This paper innovatively defines the structure of human capital based on existing theories and use the heterogeneous stochastic frontier model to test the relationship between various types of human capital and innovation. It is found that with the progress of technology, the structure of human capital and the mechanism of promoting innovation have undergone profound changes. Together with commercial leasing human capital, financial human capital, and entrepreneurs, information human capital and transportation human capital participate in innovation activities and create a new collaborative space, which in turn helps to spread the value of innovation and influence the effectiveness of the entire innovation system. This study enriches the theoretical research on the mechanism of human capital promoting innovation in the information age and provides new insight to explain the imbalance between human capital input and innovation output. Based on the theory of innovation chain value and flow space, this study redefines the connotation of innovative human capital structure by distinguishing the nature of innovation activities. This study also reveals the difference in the influence of human capital structure on different types of innovation activities. This study partly explains the problem of increasing human capital input but decreasing innovation efficiency in developing countries. Therefore, from a macro perspective, our research provides guidance for understanding the transformation of innovation under the background of technological progress and formulating effective urban innovation strategies for managers.

Carbon emission trading scheme and corporate labor cost: Evidence from China

In the low-carbon economy era, the impacts of government environmental policies on the corporate labor force have received increasing attention. This study empirically examines the effects of the carbon emission trading scheme (ETS) on corporate labor costs using a sample of Chinese A-share listed companies in the industrial sector from 2007 to 2020. Empirical analysis shows that the ETS significantly increases corporate labor costs, and this finding is further supported by various robustness tests. Further analysis reveals that the ETS primarily affects labor costs by promoting the upgrading of the human capital structure, and the impact of the ETS on labor costs is more significant in enterprises in China's eastern region, those with higher labor intensity, and state-owned enterprises. Additionally, the effects of the ETS on corporate labor costs manifest mainly in the increase in the labor costs of ordinary employees. We contribute to the existing literature by enhancing the current understanding of the policy implications of the ETS and shedding light on the dynamics of corporate labor costs under the low-carbon economy.

Impact of industrial robot on labour productivity: Empirical study based on industry panel data

This empirical analysis explores the impact of industrial robots on labour productivity using panel data of 17 Chinese industries from 2006 to 2021. The results reveal that the development of industrial robots significantly improves labour productivity; a series of robustness tests validate this outcome. However, the impact of industrial robots on labour productivity varies across industry types. The influence coefficient of the low-density robotics industry is larger than that of the high-density robotics industry. Furthermore, although the scale of industrial robot usage before 2012 was smaller than that after 2012, its effect on labour productivity was more significant. Our findings indicate the possibility of diminishing marginal effect of industrial robots in promoting labour productivity. The mechanism analysis demonstrates that human capital level has a complete intermediating effect between industrial robots and labour productivity. Thus, industrial robot applications can contribute to labour productivity by optimising human capital structure. These findings provide crucial insights for governments and policy makers to improve labour productivity and economic growth.

Transforming capital: The role of human capital structure in modulating environmental outcomes across economic transitions

Based on the perspective of new structural economics, this study builds a theoretical framework of human capital structure and environmental pollution. Human capital structure on pollution has different manifestations at different stages of development, the effect of pollution based on human capital structure follows the environmental Kuznets curve. Using multinational panel data (1990–2015) and provincial panel data for China (2004–2020), examined the dynamic relationship between human capital structure upgrading and pollution by introducing an interaction term between human capital and economic development level, applying random-effect, fixed-effect models, and a dynamic model test. The results support our theoretical analysis.

Digital Transformation and Total Factor Productivity of Enterprises

Digital transformation is not only a necessary path to promote enterprise transformation and upgrading, but also one of the key paths to bridge the digital divide and achieve sustainable development. This article is based on the data of listed companies in coastal areas of China from 2011 to 2022, constructs a digital transformation index, and, on the basis of alleviating endogeneity issues, empirically finds that digital transformation has a significant positive impact on total factor productivity of enterprises through a series of robustness tests. Among them, digital transformation mainly promotes the improvement of total factor productivity through various means such as expanding the path of enterprise innovation and development, effectively constructing human capital structure, and enhancing resource allocation efficiency. The research conclusion of this article provides data support and analytical perspective for the productivity effect of digital transformation, and also provides policy reference for expanding new paths.

Exploring the Impact of Influencing Factors on High-Quality Development in the Manufacturing Industry: A Comprehensive Analysis using Citespace Visualization and WSR-DEMATEL

High-quality development of the manufacturing industry is a key path to meet the growing needs of the people for a better life and boost China's economy under the double-cycle development pattern. The study focuses on the influencing factors of the high-quality development level of the manufacturing industry. Firstly, the study utilizes the Citespace visualization analysis tool to outline the research hotspots and development trends in this field, comprehensively understanding the interrelationships among influencing factors and their evolving tendencies. This provides valuable information resources for constructing the final indicator system of influencing factors; Secondly, the study constructed an index system of influencing factors based on the WSR (wuli-shili-renli) system methodology, and at the same time, it used the decision-making experiment and experimentation method (DEMATEL) to explore the interrelationships among the 11 influences and to calculate their centrality and causality; Finally, this study portrayed and comparatively analyzed the degree of importance of each influencing factor, and identifies the key influencing factors. The result shows that: Executive team heterogeneity, human capital structure, government subsidy, digital economy, business environment, and green technology innovation are the key influencing factors for the high-quality development of the manufacturing industry. The study can provide theoretical significance and practical enlightenment for the manufacturing industry to enhance its development level to realize high-quality development.

Human Capital Formation in High-Tech: Features of Government Policy

Purpose: is to reveal the peculiarities of government policy aimed at building human capital in high-tech industries. Methods: this research is based on a systems approach; decomposition of human capital in order to identify systemic gaps in its formation; qualitative (traditional) analysis of government programs and projects; a comparative analysis of the directions of Russian government policy and some leading countries in the field of high technologies aimed at human capital development. Results: the essence and structure of the organization's human capital are considered based on the stages of its reproduction, as well as from the position of its expanded interpretation. Systemic gaps in the formation of human capital of high-tech organizations have been identified, including gaps in the formation of individual and corporate human capital, as well as in the institutional and infrastructural support for its reproduction. The features of Russian government policy aimed at the formation of human capital in the high-tech sector are shown, in comparison with the policies of a number of foreign countries. The role of government programs and projects (“Priority2030”, “Professionalitet” and “Advanced Engineering Schools”) in overcoming systemic gaps in the formation of human capital in high-tech organizations is outlined. Conclusions and Relevance: the performed analysis showed the presence of a wide range of government policy measures of a number of countries that occupy leading positions in the field of high technology, aimed at developing human capital in the high-tech sector. Among them are the development of fundamental science, interdisciplinary and mathematical knowledge, STEM competencies, as well as strengthening the interaction between the academic sector and the high-tech sector. The arsenal of tools of domestic government policy includes a focus on practice-oriented training, the development of digital competencies, advanced training of management personnel, as well as the development of interaction between the academic and high-tech sectors. The federal project “Advanced Engineering Schools” corresponds to the elimination of the largest number of system gaps. At the same time, the systemic gap at the stage of formation of general human capital, which manifests itself in the poor physical and mathematical training of schoolchildren, remains unresolved.

Unpacking Digital Transformation: Identifying key enablers, transition stages and digital archetypes

This study aims to identify recurring Digital Transformation (DT) archetypes within firms and explore the capabilities and values associated with each archetype. Underpinned by the Resource-Based View (RBV) and Socio-Technical Systems (STS) theory, the study provides a framework explicating the enabling factors, their characteristics, interdependencies, operational capabilities, and resultant value creation within the context of digitalizing firm operations. Employing a deductive-inductive approach, an exhaustive literature review combined with an in-depth, multiple case study analysis of sixteen firms provides rich insights into the digital transformation journey. Findings reveal technology, data, human capital, processes, and organization structure as key enablers alongside their critical, complementary roles for transformation. Cross-case analysis identified instances of the DT framework, uncovering three archetypes: process efficiency, responsiveness, and strategic agility. Each archetype exhibits distinct socio-technical enabler configurations and improvements to business processes, resulting in unique operational capabilities and value generation. This research provides actionable guidance for managers in leveraging socio-technical enablers to achieve successful digital transformation. It underscores the need for tailored strategies, recognizing that a one-size-fits-all approach is inadequate. Managers must strategically select desired values and develop the necessary socio-technical system components, processes, and operational capabilities to attain them. OriginalityThis study develops digital archetypes of firm operations linking sociotechnical components, operational capabilities, and goals of firm operations. To the best of our knowledge, no prior research has developed such digital archetypes.

Unintended consequences of tax incentives on firms' human capital composition: Evidence from China

This paper investigates the unintended effects of tax incentives on firms' human capital composition. By exploring data on A-share listed firms from 2015 to 2020 and utilizing a quasi-experimental design, we examine the impact of the 2018 value-added tax (VAT) credit refund policy on the human capital composition of firms' workforce. We find that treated firms increased the ratio of R&D employees by 0.61% relative to control firms. The incentive effect is more pronounced for firms in modern service sectors, mature firms, non-state-owned firms, and firms located in eastern regions. The mechanism reveals that the VAT policy, by refunding tax credits to pilot firms, alleviated internal financing constraints and prompted firms to increase investments in fixed assets and R&D expenditures. This enhanced the firms' human capital structure. Our study provides a novel perspective on how tax incentives unintentionally affect firms' human capital composition while also providing insights into further refining China's VAT credit-refund system in the post-COVID era.

R&D investment, human capital and enterprise performance——Based on the research of listed companies in the power industry

This paper based on the electric power industry listed companies in 2023 cross section data, introduce R&D investment, human capital factors and from the dimension of the enterprise scale,R&D investment,human capital and development level to build the comprehensive performance evaluation index system of listed companies in the electric power industry.And then we use the factor analysis and principal component analysis method to evaluate the comprehensive performance.It is found that R&D investment and human capital are important factors affecting the performance of enterprises in the power industry. It is suggested that enterprises in the power industry should continue to enhance R&D investment, optimize the human capital structure, and further improve the comprehensive performance of enterprises.