Antecedent and outcomes of human capital in enhancing service small- and medium-sized enterprises’ international performance
This study is aimed at improving comprehension on the antecedent and outcomes of human capital in enhancing international performance of business service small- and medium-sized enterprises (SMEs) by drawing on the Dynamic Capability View, Resource-based Theory, and Institutional Theory. Essentia...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2020
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/99260/1/SPE%202021%2026%20IR.pdf |
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| Summary: | This study is aimed at improving comprehension on the antecedent and outcomes of
human capital in enhancing international performance of business service small- and
medium-sized enterprises (SMEs) by drawing on the Dynamic Capability View,
Resource-based Theory, and Institutional Theory. Essentially, human capital reflects the
knowledge, skills, and abilities of individuals in a firm, which are key for enhancing
international performance concerning success in foreign markets such as in terms of
revenue, profit, and market share. Despite the importance of human capital in influencing
performance as well as the fact that business service SMEs’ depend highly on human
capital, investigations in the literature on the antecedents and outcomes of human capital
on international performance is still limited. Investigation into the relationship between
human capital and international performance is pivotal in light of the challenges facing
Malaysian business service SMEs which suffer from weak international performance.
This study proposes that managing human capital wisely may enhance SMEs’
capabilities and create innovative service offerings, which may contribute to better
international performance. Also, the study suggests that one of the ways to develop
human capital is through the adoption of a knowledge-based human resource
management. A quantitative research method is employed involving a survey on 278
business service SMEs from Malaysia. Prior to conducting the quantitative study, a
qualitative preliminary study was conducted to validate the factors that drive
international performance found from the literature, which facilitate the development of
the research framework. Four key findings were found from this study. First, knowledgebased
human resource management was indeed an antecedent of human capital. Second,
human capital was found to positively influence international performance. Third,
dynamic capability in the aspects of entrepreneurial orientation, foreign market
knowledge, marketing capability, and technological capability were found to mediate the
relationship between human capital and innovative service offerings. Fourth, innovative
service offerings and government facilitation were found to drive the international performance of business service SMEs. These findings point towards the importance of
both, internal resources and capabilities, as well as external support from the government
in ensuring international performance among business service SMEs. The study provided
support for Resource-based Theory, Dynamic Capability View, and Institutional Theory.
The study’s findings are beneficial for the stakeholders of the industry such as business
service SMEs, government agencies, and trade associations. |
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