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.
Keywords
- Human Capital (HC) Search this journal for Human Capital (HC) (opens in a new tab)
- Innovative Capabilities Search this journal for Innovative Capabilities (opens in a new tab)
- Radical Innovative Capabilities Search this journal for Radical Innovative Capabilities (opens in a new tab)
- Incremental Innovative Capabilities Search this journal for Incremental Innovative Capabilities (opens in a new tab)
- Telecom Sector of Pakistan Search this journal for Telecom Sector of Pakistan (opens in a new tab)
References
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99– 120.
- Berg, I. (1969). Education and jobs: The great training robbery. New York: Praeger.
- Bontis, N. W., Keow, Y. & Richardson, S. (2000). Intellectual capital and the nature of business in Malaysia. Journal of Intellectual Capital, 1(1), 85-100.
- Bontis, N. (1998). Intellectual Capital: An Exploratory Study that Develops Measures and Models. Management Decision , 36(2), 63-76.
- Brooking, A. (1996). Intellectual capital. London: International Thomson Business Press.
- Chen, Y. C., Lin, M. J. J. & Chang, C. H. (2006).The Influence Of Intellectual Capital On New Product Development Performance- The Manufacturing Company of Taiwan an Example. Total Quality management, 17(10), 1323-1339.
- Cohen, W. & Levinthal, D. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), 128-152.
- Dakhli, M. & DeClercq, D. (2004). Human capital, social capital and innovation: a multi country study. Entrepreneurship & Regional Development, 16(2), 107-128.
- Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555–590.
- Dean, A. & Kretschmer, M. (2007). Can Ideas be Capital? Factors of Production in the Postindustrial Economy: A Review and Critique. Academy of Management Review , 32, 573- 594.
- Dewar, R. D. & Dutton, J. E. (1986). The adoption of radical and incremental innovations; An empirical analysis. Management Science , 32(11), 1422-1433.
- Dewett, T., Whittier, N. C. & Williams, S. D. (2007). Internal diffusion; The conceptualizing of innovation implementation, Competitive Review. An International Business Journal, 17(1), 8-25.
- Downs, G. W. J. & Mohr, L. B. (1976). Conceptual issues in the study of innovation. Administrative Science Quarterly, 21(4), 700–714. innovations; An empirical analysis. Management Science , 32(11), 14221433.
- Druker, P. (1999). Management challenges for the 21st century. New York: Harper Collins Publishers.
- Elmquist, M. L. & Masson, P. (2009). The value of a failed R&D project: an emerging evaluation framework for building innovative capabilities. R&D Management , 39(2), 136-152
- Galende, J. (2006). Analysis of Technological Innovation from Business Economics and Management. Technovation , 26, 300-311
- Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109– 122.
- Hall, P. & Soskice, D. (2004). Varieties of Capitalism. The Institutional Foundations of Comparative Advantage. Oxford; University Press.
- Henderson, R. & Clark, K. B. (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35, 9–30.
- Herrmann, A., Gassmann, O. & Eisert, U. (2007). An Empirical Study of the Antecedents for Radical Product Innovation and Capabilities for Transformation. Journal of Engineering and Technology Management , 24(1-2), 92-120.
- Hill, C. W. L. & Rothaermel, F. T. (2003). The Performance of Incumbent Firms in the Face of Radical Technological Innovation. Academy of Management Review , 28(2), 257-274
- Isaac, R. G., Herremans, I. M. & Kline, T. J. (2010). Intellectual Capital Management Enablers: A Structural Equation Modeling Analysis. Journal of Business Ethics , 93(2).
- Johnson, L. D., Neave, E. H. & Pazderka, B. (2002). Knowledge, Innovation and Share Value. International Journal of Management Review , 4, 101-134.
- Kang, S. C. & Snell, S. A. (2009). Intellectual capital architectures and ambidextrous learning; A framework for human resource management. Journal of Management Studies , 46(1), 65-92.
- Lawson, B. & Samson, D. (2001). Developing innovation capability in organizations; A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400.
- Leitner, K. (2005). Managing and reporting intangible assets in research technology organizations. R&D Management, 35(2), 125-36.
- Lynn, M. (2002). The ROI of human capital. HR Professional, 19(4), 34–45.
- Nahapiet, J. & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242–266.
- Nonaka, I. & Takeuchi, H. (1995). The Knowledge-Creating Company; How Japanese Companies Create the Dynamics of Innovation. New York; Oxford University Press.
- Norman, D. A. (1998). The Invisible Computer (Cambridge, Massachusetts).MIT Press.
- O’Reilly, C. A. & Tushman, M. L. (2004).The ambidextrous organization. Harvard Business Review, 82(3), 7481.
- Pavitt, K. (1991). What Makes Basic Research Economically Useful? Research Policy , 20(2), 109-120.
- Roos, J. G., Roos, N., Dragonetti, K. & Edvinsson, L. (1997). Intellectual Capital; Navigating the New Business Landscape. London: MacMillan Press.
- Roos, J., Roos, G., Edvinsson, L. & Dragonetti, N. C. (1998). Intellectual capital-navigating in the new business landscape. New York: New York University Press.
- Schuler, R. S. & Jackson, E. J. (1987). Linking competitive strategies with human resource management practices. The academy of management executives, 1(3), 207-219.
- Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 2(1), 1-17.
- Sharabati, A. A., Jawad, N. & Bontis, (2010). Intellectual capital and business performance in the pharmaceutical sector of Jordan. Management Decision, 48(1), 76-88 .
- Sher, P. J. & Yang, P.Y. (2005).The effects of innovative capabilities and R&D clustering on firm performance; the evidence of Taiwan’s semiconductor industry. Technovation , 25(1), 33-43.
- Snell, S. A. & Dean, J. W. J. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. Academy of Management Journal , 35(2), 467 504.
- Stewart, T. A. (1997). Intellectual capital. New York: Doubleday-Currency.
- Subramaniam, M. & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal , 48(3), 450–463.
- Sveiby, K. E. (2001). A knowledge-based theory of the firm to guide in strategy formulation. Journal of Intellectual Capital, 2(4), 344-58.
- Tushman, M. & Anderson, P. (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly, 31, 439–65.
- Van de Ven, A. H. (1986). Central Problems in the Management of Innovation . Journal of Management Science , 32(1), 590-607.
- Van-Buren, M. (1998). Virtual coffee klatch. Technical Training, 9(5), 42-58.
- Wang, W. Y. & Chang, C. (2005). Intellectual capital and performance in causal models Evidence from the information technology industry in Taiwan. Journal of Intellectual Capital, 6(2), 222- 236.
- Wonglimpiyarat, J. (2010). Innovation index and the innovative capacity of nations. Futures, 42(3), 247-253.
- Youndt, M. A., Subramaniam, M. & Snell, S. A. (2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management Studies , 41(2), 335–362.
Downloads
No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.
How to Cite
Share this article
License
Copyright (c) 2014 Samar Hayat Khan, Hassan Ahmed Shah, Abdul Majid, Muhammad Yasir (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
Keywords
- Human Capital (HC) Search this journal for Human Capital (HC) (opens in a new tab)
- Innovative Capabilities Search this journal for Innovative Capabilities (opens in a new tab)
- Radical Innovative Capabilities Search this journal for Radical Innovative Capabilities (opens in a new tab)
- Incremental Innovative Capabilities Search this journal for Incremental Innovative Capabilities (opens in a new tab)
- Telecom Sector of Pakistan Search this journal for Telecom Sector of Pakistan (opens in a new tab)
Section
Published in
Vol. 6 No. 2 (2014)
Technostress, Mobile Learning & Entrepreneurship
View issue contents
Published
Submissions
Have research to publish? Information Management and Business Review welcomes submissions.
Make a Submission