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«Наука через призму времени»

Декабрь, 2018 / Международный научный журнал
«Наука через призму времени» №12 (21) 2018

Автор: Аль-Д. Хайдер Мохаммед Жасим, аспирант
Рубрика: Экономические науки
Название статьи: Human capital innovation in enterprises

Статья просмотрена: 11 раз
Дата публикации: 19.11.2018


Аль-Д. Хайдер Мохаммед Жасим

аспирант, 3 курс

направление 38.06.01 экономика

Южно-Уральский государственный университет, гелябинск


Аннотация. Цель настоящей статьи – объяснить инновационный вклад человеческого капитала в области интеллектуального капитала, с попыткой определить роль инновационного человеческого капитала в повышении эффективности организации. Сегодня концепция человеческого капитала все чаще признаётся в качестве одного из важнейших стратегических активов организаций в наукоёмкой экономике. В наукоёмкой экономике современные и высокотехнологичные предприятия не только ориентируются на продукцию, услуги, маркетинг, научно-исследовательскую деятельность, но и уделяют особое внимание развитию и управлению инновациями.

Ключевые слова: человеческий капитал, инновации, человеческий капитал, инновации на предприятиях.



AL-D. Haider Mohammed Jasim

PHD, 3 course

Specialization 38.06.01 Economics

South Ural State University (national research university)

Russian Federation, Chelyabinsk 

Abstract. The purpose of the present paper  to explain the innovation in human capital    contributions in the field of intellectual capital, with an attempt to identify the role innovation human capital to improve performance organization. Today the concept of human capital is increasingly recognized as one of the most important strategic assets of organizations in knowledge-based economy. In knowledge-based economy, modern and high tech enterprises not only focus on  products, services, marketing, research and development activities but also pay particular attention to the development and management of  innovation.

Key words: Human capital, innovation, human capital innovation in enterprises.



In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. A strategy for improving workforce productivity to drive higher value for the firms has become an important focus. Firms seek to optimize their workforce through comprehensive human capital development programmers  not only to achieve business goals but most important is for a long term survival and sustainability. To accomplish this undertaking, firms will need to invest resources to ensure that employees have the knowledge, skills, and competencies they need to work effectively in a rapidly changing and complex environment. Human capital development becomes a part of an overall effort to achieve cost-effective and firm performance. Hence, this paper attempts to look into the connection between human capital and innovation in the developmental economics.


1. Human capital

Human capital is defined as the knowledge, skills, experience, intuition and attitudes of the workforce. Intellectual capital can be increased by increasing the capacity of each worker. Human capital is the knowledge, skill and capability of individual employees providing solutions to customers . Human capital is the firm’s collective capability to extract the best solutions from the knowledge of its people. It is important because it is a source of innovation and strategic renewal, whether it is from brainstorming in a research lab, daydreaming at the office, re-engineering new processes, improving personal skills or developing new sales leads [1].

Individual competence is important for organizations. This is people’s capacity to act in various situations. It includes skill, education, experience, values and social skills. People are the only true agents in business; all assets and structures, whether tangible physical products or intangible relations, are the result of human action and depend ultimately on people for their continued existence [2]. People create knowledge, new ideas, and new products, and they establish relationships that make processes truly work. Unfortunately, when people leave, they take along their knowledge, including internal, external, formal, and informal relationships[3] .

In the table No. (1) Some definitions of human capital

Some Definitions of Human Capital) table No. (1)


Definition of HC

Roos et al. (1997) [4]

Its Competence knowledge and skills, Attitudes motivations and behaviors, Intellectual agility innovation, imitation, adaptation and packaging.

Guthrie and Petty

(2000) [5]



-Know-how, Education, Vocational qualification, Work-related knowledge, Occupational  assessments, Psychometric assessments, Work-related competencies, Entrepreneurial,  Innovativeness, Proactive and , Reactive abilities, Changeability.


Bontis (2000) [6]

-Employees’ tacit knowledge, skills, experience and attitude

Stewart (2002) [7]

Employees Education, Employees Experiences, Employees Skills.

Marr and Moustaghfir

(2005) [8]

Know-how, Education , Vocational qualification, Work-related knowledge, Occupational  assessments, Psychometric assessments, Work-related competencies ,  Entrepreneurial,  Innovativeness, Proactive and reactive abilities, Changeability.

Thomas et al (2013) [9]

HC as the ‘people, their performance and their potential in the organization’


We can say,  human capital consist of knowledge, talent and experience of employees, Human capital is a major source of value addition in organizations and it is based on skills, knowledge and expertise, competence, attitude, and intellectual agility of employees. Тhe employees generate intellectual capital through their competence, attitude and intellectual agility. Competence includes skills and education; attitude covers the behavioral dimensions of the employee’s work while intellectual agility based on innovativeness and solution of business problems.

2. Innovation

Ensuring the economies continuing prosperity and improving productivity is a priority of governments’ executives. These objectives can be met by encouraging innovation among business community. This is particularly important for the more developed economies, which have less scope for growth based on ‘capacity building’ and for cost competition.

Armbruster [10] stated that innovation can be considered to be a complex phenomenon, including technical (new products, new production methods) and non-technical aspects (new markets, new forms of organization) as well as product innovations (new products or services) and process innovations (new production methods or new forms of organization). Ngoc Ca [11] believes that invention is the initial creation of an idea for a new product or process; whereas, innovation is the first attempt to put an idea into practice. “Radical Innovation” is considered with basic and revolutionary changes, which require a clear departure from existing practices of how things are done and also fundamental adjustments to existing technology or the acquisition of modern technology. Furthermore, Imran [12] find out that organizational climate fosters innovative work behavior. More research was recommended to develop and test theories related to the relationship between organizational climate and innovation Imran[12] confirmed the importance of the impact of organizational climate on creating new ideas to help success organization . Generally,  Innovation was defined as the implementation of production and delivery processes with newer and relatively better quality. human capital of an organization might develop single creative ideas, the actual implementation of new products, processes or services is most of the time dependent on more than one person.


3. Human capital innovation in enterprises

The term human capital innovation the context of innovation is defined as the conscious decision-making process by which information (an idea) is transformed into an outcome be it tangible (product) or intangible (service). Innovation is the implementation of a new method of promoting the organization or its services and goods, or new methods to influence the behavior of individuals or others[13]. In order to skip in the direction of the innovative project successfully, we should have a collection of important steps , figure No. (1) explain  human capital innovation process in enterprises.

Figure No.(1)  Human capital innovation process

Source: by author

- thinking about the circle of possible capabilities, innovative project remains just a dream, if the requirements of study is not available, and if it was beyond your capabilities, it is not wise at all to worry about the participation of problem solving needs to take place in space, that outside of possible interpretation, and it is a waste of time and money.

- Put your hand on the problem so you can thinking in a solution, the project innovation is based on providing a solution to the problem list in the products or industry or science, it's a project based on a scientific idea, whether the theory or workable, and in both cases you need to stand on the nature of the problem, to degradation, and then you can search for the right solution.

- Systematic study of the problem, this methodology depends on the accuracy of observation, and the study of problems in the innovative project, and then brainstorm solutions evaluate their costs and their applicability in reality, and feasibility desired. The study methodology by following these steps, help to improve the draft of your innovation successfully.

- Initiative, there are always solutions to problems, but it is mostly traditional, not new. Most often, solutions that contain defects, so understanding the solutions should be combined with the fact that its new solutions, the initiative is the basis of innovation .



By realizing and understanding the importance of HC and innovation, companies can improve their competitive advantage. It shows the importance of relationships between HC and innovation, The Relationship Between Human Capital and Innovation  and  the  importance  of  investment  and  management  of  these  capitals  in  organizations. Therefore, top managers of the firm should sustain, protect, develop and manage  HC to increase organizational innovation as a creator of competitive advantage for the company,  In the light of above discussion, it is suggested that: There is a positive relationship between Human capital and innovation.



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  2. Lawal, A.A & Sulaimon, A. (2007). “Social Responsibility and Organizational Effectiveness of Small and Medium Enterprises in the Contemporary Environment”. Lagos Organization Review.Vol.4 N0 7.pp. 63-76.
  3. Bontis, Nick, There’s a Price On Your Head: Managing Intellectual Capital Strategically, Business Quarterly, 60 (4), Summer 1996.
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  5. Petty, R., and Guthrie, J. (2000). Intellectual capital literature review Measurement, reporting and management. Journal of Intellectual Capital, 1(2), 155.
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  9. THOMAS, H., SMITH, R.R. and DIEZ, F. (2013) Human capital and global business strategy. New York: Cambridge University Press,p3.
  10. Armbruster, H., Bikfalvi, A., Kinkel, S., and Lay, G. (2008). Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys. Technovation, 28(10), 644-657.
  11. Ngoc Ca, T. (2009). Learning by networking with multinationals: A study of the Vietnamese automotive industry. In M. G. a. J. Woo (Ed.), Fuelling Economic Growth: The Role of Public–Private Sector Research in Development (pp. 219-261): Practical Action Publishing Ltd.
  12. Imran, R., Saeed, T., Anis-ul-Haq, M., and Fatima, A. (2010). Organizational climate as a predictor of innovative work behavior. African Journal of Business Management 4(15), 3337-3343.
  13. Bloch, C. and M. Bugge (2013), ‘Public Sector Innovation – From theory to measurement’, Structural Change and Economic Dynamics, 27, 133-145.


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