Understanding the impact of human capital on radical and incremental innovation: the role of entrepreneurial passion and alertness

Abstract

Purpose The present study sought to comprehend the impact of human capital on radical and incremental innovation, with a focus on examining the mediating effects of entrepreneurial passion and entrepreneurial alertness. Design/methodology/approach The study employed a purposive sampling technique for collecting data from entrepreneurs in from different sectors of Pakistan. A sample of 382 entrepreneurs completed the survey. Data were analyzed using SPSS and AMOS. Reliability, discriminant, and convergent validity tests were conducted, and structural equation modeling was used to test the hypotheses. Findings It was revealed that human capital has a significant impact on radical and incremental innovation. Furthermore, entrepreneurial passion and alertness significantly mediates the relationship between human capital and innovation. Originality/value The study contributes to the emerging research on innovation in entrepreneurship. There is limited research on types of innovation and entrepreneurial alertness in Pakistan; therefore, the study adds value to the scarce empirical research on innovation and entrepreneurial alertness and passion.