Impact of Human Capital on the Organization’s Innovative Capabilities: Case of Telecom Sector in Pakistan

Abstract

The purpose of this study is to investigate the impact of human capital on organization’s innovative capabilities in the narrative context of Pakistan. Today various organizations recognized the significance and importance of the intellectual capital. Without any doubt in knowledge-intensive organizations like telecom sector organizations intellectual capital plays a vital role in the contemporary aggressive and everchallenging business environment. The organizations can achieve competitive edge over its competitors by mean of innovation. By effective utilization of intellectual capital organizations can enhance innovative capabilities. Intellectual capital can be classified into three classifications named as human capital, structural capital and relational capital. Human capital is the main component of the intellectual capital and considered as a main aspect for the organization in order to perform in this diverse and unpredictable business environment. The conception of human capital now became mainstream issue for both academics and business practitioner all around the world. However, in the context of developing countries like Pakistan concept of human capital is still under explored. In this study at hand the impact of human capital organization’s innovative capabilities i.e. radical and incremental innovative capabilities are examined. Three hypotheses were developed in order to test the relationship between human capital and innovative capabilities of telecom sector organization in Pakistan. To accomplish the objectives of this study survey method was used in which data was collected through questionnaire. Telecom Sector of Pakistan has been taken as unit of analysis. The collected data was analyzed with the help of SPSS by applying the correlation and regression test. Results of correlation and regression analysis showed that there is a strong relationship between human capital and organization’s innovative capabilities in telecom sector of Pakistan and all three developed hypotheses were supported.

The impact of self-development on the tendency toward organizational innovation in higher education institutions with the mediating role of human resource agility

“…Organizational innovation needs an agile workforce to identify innovation opportunities and providing new and innovative ideas. The findings of this study are additionally confirmed by Khodabandeh et al (2018), Khan et al (2014), Munteanu et al (2020), Doz (2020), Azizsafaei (2017), Sabahi and Parast (2020), Diaz-Fernandez et al (2017), Abili et al (2015), Ziaee et al (2012), Zahedi et al (2013), Abrisham Kar and Abdollahi (2016) that believed that there is a positive relationship among the human resources, HRA and the innovation of the new product and also, employee and organizational innovation. Finally, this study concluded that HRA played a mediating role in this positive relationship between self-development and organizational innovation.…”

The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?

“…This argument strongly emphasizes the significance of investing in these intangible and intricate to emulate assets, like social capital. Social capital is a knowledge resource that is utilized by the organization to achieve the competitive advantage and success (Khan et al, 2014;Yasir and Majid, 2019). Social capital is the outcome of the interactions and collaborations between the people or groups who share their ideas; in this context, social capital can be defined as assets generated by interpersonal networks which are, therefore, embedded and available within them (Subramaniam and Youndt, 2005).…”

“…In modern era, the growing significance of social capital has prompted a large number of studies related to its antecedents and outputs like innovativeness (Subramaniam and Youndt, 2005), competitive advantage (Nahapiet and Ghoshal, 1998) and value creation (Khan et al, 2014). Still there is lack of empirical examinations that how social capital augments the strategic renewal of organizations in developing economies.…”