The Mediating Effect of Human Capital on the Relationship Between Strategic Innovation and the Performance of Manufacturing SMEs in Yemen

Abstract

The purpose of this paper is to fill gaps in the human capital literature, first, by providing insights into the relationship between human capital and strategic innovation and the performance of Small and Medium Enterprises (SMEs), and second, by exploring the role of human capital as a mediating variable. Although SMEs perform a vital role in the economic development of countries worldwide, developing countries tend to lag behind developed countries in this sector; hence, there is a need to investigate the peculiar nature of SMEs and their performance in the context of developing countries. Additionally, understanding an organization’s human capital requires the articulation of a system of variables that helps to uncover and manage the visible wealth. The contribution of SMEs can be measured through performance. This study is a conceptual discussion of manufacturing SME performance in Yemen and the effect of human capital and strategic innovation. The performance is considered to be very low, and the country is ranked by the Global Innovation Index as one of the lowest in terms of innovation. This paper describes the development of a framework which is a clear manifestation of the knowledge gap addressed by this study.

The effect of talent management and human capital on sustainable business performance: an empirical investigation in Malaysian hospitals

“…In addition to the direct relationship between talent management and performance, Alqershi et al (2019) emphasized that scholars have shown an interest in the mediating role of human capital (Rezaei et al, 2021;Subramony et al, 2018;Nieves and Quintana, 2018). We provide confirmatory evidence for the mediating effect of human capital in the relationship between TMM and SBP, which means that H6 is supported.…”

“…They reported significantly positive direct effects between HC on both variables. Additionally, by using the philosophy to justify its mediating role in the relationship between TM and SBP, Alqershi et al (2019) and Raineri (2017) recommended that HC can contribute to sustainable performance.…”

The structural capital, the innovation and the performance of the industrial SMES

“…This allows obtaining a global vision of the influence of the structural capital of the SME on innovation. Previous studies conducted in different countries and focused on SMEs have only partially addressed some of the components of structural capital (Santos-Rodriguez and Figueroa-Dorrego, 2011; Hogan and Coote, 2014; Ariawan et al , 2016; Agostini and Nosella, 2017; Dedahanov et al , 2017; Allameh, 2018; Alazawi et al , 2018; Kahan, 2019; Alqershi et al , 2019). Additionally, structural capital is studied in the context of an emerging country.…”

The Relationship between HRM Strategies and Sustainable Competitive Advantage: Testing the Mediating Role of Strategic Agility

“…The severe competition reduced the contribution of manufacturing industry to Yemeni Gross Domestic Product from 24% in 2010 to only 6.4% in 2015. In addition to the competition, manufacturing industry contribution was deteriorated due to their insufficient experience, inappropriate business environment, poor incentives, poor infrastructure, lack of employee training, and, as a result, lack of skilled human capital [5]. The new competition trend has created a lot of problems for the manufacturing industry in many developing countries such as Yemen [6].…”