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Measuring Human Capital in Small and Medium Manufacturing Enterprises: What Matters?

Author

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  • Muhammad Shujaat Mubarik

    (University of Malaya)

  • V. G. R. Chandran

    (University of Malaya)

  • Evelyn S. Devadason

    (University of Malaya)

Abstract

This study proposes a framework that quantifies and integrates both the tangible and intangible aspects of HC to comprehensively measure the overall level of human capital index (HCI) in small and medium manufacturing enterprises (SMEs). Data were collected from 100 SME experts through the use of questionnaires in two stages. The data collected were first, used for selection purpose, and second, for the prioritization of relevant dimensions and sub-dimensions of HC. The analytic hierarchy process was adopted to prioritize and assign dimension and sub-dimension weights to HC to derive the HCI. The results indicate that not all dimensions and sub-dimensions of HC are important for the HCI. Namely, the HCI can be best represented by 9 dimensions and 35 sub-dimensions of HC. The core dimensions are experience, skills, education, abilities and training. Indeed, within experience, the main sub-dimensions are work-related experience and organizational tenure. The results suggest the importance of experience relative to skills and education. The proposed framework can also be applied to derive industry specific HCI.

Suggested Citation

  • Muhammad Shujaat Mubarik & V. G. R. Chandran & Evelyn S. Devadason, 2018. "Measuring Human Capital in Small and Medium Manufacturing Enterprises: What Matters?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(2), pages 605-623, June.
    • Handle: RePEc:spr:soinre:v:137:y:2018:i:2:d:10.1007_s11205-017-1601-9
    DOI: 10.1007/s11205-017-1601-9
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    4. Ratapol Wudhikarn & Danaitun Pongpatcharatorntep, 2022. "An Improved Intellectual Capital Management Method for Selecting and Prioritizing Intangible-Related Aspects: A Case Study of Small Enterprise in Thailand," Mathematics, MDPI, vol. 10(4), pages 1-23, February.
    5. Zongyi Yin & Jiamei Ye & Xiaoying Wang & Fang Su, 2023. "Relationship between Corporate CEO Succession Planning and Corporate Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 885-885, August.
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    7. Mahmood, Tarique & Mubarik, Muhammad Shujaat, 2020. "Balancing innovation and exploitation in the fourth industrial revolution: Role of intellectual capital and technology absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    8. Maurizio Cisi & Francesca Alice Centrone, 2021. "The Human Capital for Value Creation and Social Impact: The Interpretation of the IR’s HC Definition," Sustainability, MDPI, vol. 13(13), pages 1-19, June.
    9. Artem S. Shcherbakov, 2023. "Factual models for human capital assessment," Journal of New Economy, Ural State University of Economics, vol. 24(2), pages 86-103, July.
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    11. Kusi-Sarpong, Simonov & Mubarik, Muhammad Shujaat & Khan, Sharfuddin Ahmed & Brown, Steve & Mubarak, Muhammad Faraz, 2022. "Intellectual capital, blockchain-driven supply chain and sustainable production: Role of supply chain mapping," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    12. Jaroslav BELAS & Lubomir BELAS & Martin CEPEL & Zoltan ROZSA, 2019. "The Impact Of The Public Sector On The Quality Of The Business Environment In The Sme Segment," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(32), pages 18-31, June.
    13. Alzbeta Kucharcikova & Maria Durisova & Nikola Staffenova, 2024. "Implementation of the human capital management concept: an empirical study of small trading company," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    14. Saeed Mujahid & Shujaat Mubarik & Navaz Naghavi, 2019. "Prioritizing dimensions of entrepreneurial ecosystem: a proposed framework," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-21, December.
    15. Raza Ur Rahman & Syed Mohsin Ali Shah & Hatem El-Gohary & Muzaffar Abbas & Syed Haider Khalil & Saad Al Altheeb & Fahad Sultan, 2020. "Social Media Adoption and Financial Sustainability: Learned Lessons from Developing Countries," Sustainability, MDPI, vol. 12(24), pages 1-26, December.
    16. Bambang Tjahjadi & Noorlailie Soewarno & Dewi Nabilah Anwar & Atika Fairuzi, 2024. "Effect of Human Capital and Information Capital Readiness on Business Sustainability: Do Market Orientation and Business Performance Matter?," SAGE Open, , vol. 14(1), pages 21582440231, January.
    17. Zhang, Shuyuan & Xie, Wenlan & Sun, Siying & Wu, Fan & Xue, Ying, 2024. "Nexus of green energy innovation, governance quality, and CO2 emissions in natural resource sector: The role of sustainable human development," Resources Policy, Elsevier, vol. 88(C).
    18. Paula Benevene & Ilaria Buonomo & Eric Kong & Martina Pansini & Maria Luisa Farnese, 2021. "Management of Green Intellectual Capital: Evidence-Based Literature Review and Future Directions," Sustainability, MDPI, vol. 13(15), pages 1-22, July.
    19. Lidia Valiente-Palma & María del Carmen Pérez-González, 2023. "Underemployment due to overeducation: An analysis of worker cooperatives versus conventional firms," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 910-932, August.
    20. Wei, Feiqiong & Han, Jiatong & Xu, Wei, 2024. "Exploring the nexus between structural capital, carbon neutrality and sustainable competitiveness: Evidence from natural resource exploitation in the post-COVID-19 era," Resources Policy, Elsevier, vol. 88(C).
    21. Nazir, Sajid & Ali, Mahmood & Saeed, Munazza & Mubarik, Muhammad Shahzad & Jalil, Qasim, 2024. "Sustainable performance and disaster management in the oil and gas industry: An intellectual capital perspective," Resources Policy, Elsevier, vol. 92(C).

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