This body of thinking is of the opinion that the quality and quantity of labour determine production by virtue of it being a factor of production. Moreover, improving the quality of the work force yields implicit, non-economic outputs related to the generation of ideas and decisions, which have a significant positive impact on investment, innovation and other growth opportunities Roux,
Based on resources and knowledge-based views of firms we developed a hypothesis linking three dimensions of human capital component of the intellectual capital and the innovativeness of firms.
Using a survey from 68 firms working on the auto components sector, established in the Northern of Spain and Northern of Portugal, we found firstly, that innovativeness has two main dimensions, perfectly differentiated, the product-process innovation and the management innovation; secondly that the human capital dimensions formation and knowledge creation, innovative behave, and incentives to innovation influences differently each type of innovativeness capacity.
We found that the different human capital dimension influences directly, only, the product-process innovativeness. More specifically only the innovative behavior and the incentives to innovation influence the product-process innovativeness. Moreover, none of the human capital dimensions considered influence the management innovativeness directly.
These results highlight the importance of human capital on innovative performance, and it allows identification of the most important dimensions that influence directly the different innovativeness capacities and more broadly, highlight the value of intellectual capital as a competitive advantage in contemporary times.
In this sense, Knowledge-based resources have grown in importance because knowledge has become a critical ingredient for gaining a competitive advantage, particularly in the new economic landscape Grant, Although some attempts to measure intellectual capital have been made so far, but there is still a long way to go.
Intangibles and intellectual capital IC have become a major issue not only for academics, but also for governments, regulators, enterprises, investors and other stakeholders during the last decade.
The intellectual capital is increasingly considered a source of competitive advantage. While much research attention has focused on understanding how knowledge is created and distributed, little is known about performance enhancement offered by intellectual capital.
The intellectual capital is the firm capacity to transform knowledge and intangible assets in wealth, building resources L.
Edvinsson,so it can be viewed as source of sustainable competitively.
In that sense, there have been made recent efforts to link intellectual capital as a source of advantage and innovation as a source of competitive advantage. Subramaniam and YoundtNahapiet and Ghoshaland Ahuja had empirically connected the intellectual capital, knowledge management and the innovativeness.
Because intellectual capital and innovativeness are becoming more tightly couple over time, more conceptual and empirical work need to be build on. While the extant research is mainly theoretical, additional inquiry is warranted to provide a more holistic view of intellectual capital and how it affects firm performance.
Accordingly, our paper attempt to help to close the gap between intellectual capital and the innovativeness of the firm, in that sense we focus on impact of the human capital; as a relevant component of the intellectual capital jointly with the structural and relational capital and because organizational innovativeness involves the creation of new knowledge, or a novel recombination of existing knowledge, it is essentially related to human capital; on the innovativeness of the firm by addressing the following research question: Knowledge-based resources have grown in importance because knowledge has become a critical ingredient for gaining a competitive advantage, particularly in the new economic landscape Grant, The resource based view of the firm theory Barney, ; Wernerfelt, and the subsequent knowledge-based view of the firm Grant, provide the foundations for our assertion that intellectual capital can serve as a strategic resource that influence innovative outcomes.
Therefore, the alignment of knowledge, as an intangible resource, with the innovation strategy could enhance performance and culminate in a competitive advantage Grant, From here up come two different concepts, intellectual capital management and knowledge management. One is focused on the identification and management of the knowledge knowledge management and the other on the management of strategic and valuable knowledge resources intellectual capital.
In our study we focus on the human capital and their effect or lack thereof on the firm innovativeness.
A group of highly motivated and uniquely capable people is a competitive advantage because they represent firm-specific resources that are important, rare and hard to duplicate.
Nevertheless is difficult to know how to encourage employees to contribute with their knowledge for organizational gains. People may be reluctant to share crucial knowledge for fear of losing ownership, a position of privilege or superiority.
Thus, for the benefits of the organization, managers should aware an innovative attitude and incentive employed to engage an innovative attitude. They should emphasize employee capability development as well as their commitment.
Human capital therefore should involve employee competencies e. That means that the innovativeness involves the creation of new knowledge, or a novel recombination of existing knowledge.
Thus, we predict the following: Human capital is positively related with the innovativeness of the firm either in the product, process and management innovation output.
Hereby we predict the influence of human capital on the main innovation outputs, the product, process and management innovation.Human capital is defined in the Oxford English Dictionary as “the skills the labor force possesses and is regarded as a resource or asset.” It encompasses the notion that there are.
Sibling Inﬂuence on the Human Capital of the Left-Behind Costanza Biavaschi University of Reading and Institute for the Study of Labor ðIZAÞ.
The Influence of Brain Drain Phenomenon on Tourism Sector gifted people. 2 The importance of human capital in assuring quality in tourism During time, an important part of the economic growth literature pointed out the importance of human capital as an explanatory factor of growth and has focused on the effects of human capital on.
Human capital and economic growth have a strong relationship.
Human capital affects economic growth and can help to develop an economy through the knowledge and skills of people. Human capital. Human capital is the core asset of an organization including know-hows, capacities, knowledge, skills, experience, competences, attitudes, commitment, individual personal characteristics and creativity those reside within employees [5, 6].
“Capital” emphasizes that social capital, like human capi-tal or ﬁnancial capital, is productive: It enables us to create value, get things done, achieve our goals, fulﬁll our missions in life, and make our contributions to the world. But saying that social.