Impact of human capital on firms Value creating efficiency A resource based view

Abstract

In a rapidly changing environment on a globalised arena newlinecompetition has become a nomenclature for most of the organization To newlinehave a sustainable performance they should continually improve their newlineperformance by reducing costs and by the way of innovation of new newlineproducts process and productivity and matching with the speed of the newlinemarket Pfeffer for example argues that success in todays markets newlinedepends less on advantages associated with economies of scale newlinetechnology patents and access to capital and more on innovation speed newlineand adaptability Pfeffer is of the view that these latter sources of newlinecompetitive advantages are largely derived out of the firms human newlineresources In this new information society and in its economy information newlineand skilled workers in other words intellectual capital will determine the newlinecompetitive edge of the firms For the purposes of this study the concept newlineof a firms human capital is incorporated as a part of intellectual capital newline newline