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Abstract

Previous studies have frequently emphasized on the development of internal factor of the organization to improve firm performance. It is often said that an organization need to employ the best used of its human capital to improve their performance. However, it is argued that the organization that incorporates human capital and self-efficacy may have better firm performance. The dearth study on these three variables as a cohesive framework has created a literature gap. The purpose of this paper is to identify the influences on the firm performance by the interaction of human capital and self-efficacy. The result implies that human capital has a significant positive relationship with self-efficacy which in turn had a direct positive influence on firm performance. A mediation test also affirmed that self-efficacy mediates the relationship between human capital and firm performance.

"Our most valuable knowledge-based assets": Leveraging the role of human capital for organizational sustainability

“…There are a plethora of investigations conducted on intellectual capital and Sustainability (Akhtar et al, 2015;Gross-Gołacka et al, 2020;Lasiyono, 2019), while the specifically very scanty level of research has been conducted on how HC influences organizational Sustainability (Alola et al, 2018;Kucharčíková et al, 2018). Additionally, the literature on HC highlighted diversified academic contents, for instance, HC and financial performance (Savitri & Syahza, 2019;Widarni, 2015); innovative performance (Cabello-Medina et al, 2011;Halim et al, 2014); competitive performance (Huo et al, 2016); Job performance (Nangoy et al, 2020); organizational performance (Andersén, 2021;Budiarta, 2015;Fatoki, 2011;Felício et al, 2014;Prajogo & Oke, 2016;Slavković & Ognjanović, 2019;Zuhir et al, 2019) with multiple findings in single dimension rather than triple dimensions focusing organizational sustainability. This study aims to look at the most recent trends in sustainability, particularly the literature that has linked HC with sustainable business performance, to provide a conceptual overview in the last few decades.…”