Title: Causal modelling between human capital and firm performance indicators: an IT industries' perspective

Authors: Chandra Sekhar; Manoj Patwardhan; Vishal Vyas

Addresses: ABV-Indian Institute of Information Technology and Management Gwalior, Madhya Pradesh, India ' ABV-Indian Institute of Information Technology and Management Gwalior, Madhya Pradesh, India ' ABV-Indian Institute of Information Technology and Management Gwalior, Madhya Pradesh, India

Abstract: In a knowledge-based economy, Human Capital (HC) is the most important asset. It represents knowledge, skills, experience and capabilities of the employees. The present study utilised standardised scale of HC. Simultaneously, the firm performance scale was adapted from previous researches of respective domains. Database was accumulated from the IT firms that deal in the software development and integration, consultancy, maintenance services to banking industries, manufacturing and other domains of leading national and multi-national IT firms operating in India. The measurement model is a Confirmatory Factor Analysis. Reliability of the construct was reported under acceptable range, and the regression weights were significant. All observed variables loaded to their corresponding first-order construct. In the end, causal relations were analysed through DEMATEL (Decision-Making and Trial Evaluation Laboratory) methodology. Direct-relation matrix is obtained for all the criteria of HC and firm performance and finally, the degree of impact graph is obtained.

Keywords: confirmatory factor analysis; DEMATEL; employees; firm performance; human capital.

DOI: 10.1504/IJLIC.2017.086394

International Journal of Learning and Intellectual Capital, 2017 Vol.14 No.3, pp.277 - 294

Received: 07 Jun 2016
Accepted: 19 Dec 2016
Published online: 04 Sep 2017 *

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