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The role of human capital in firm performance: evidence from the engineering industry in Bangladesh

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  • Khondoker Abdul Mottaleb
  • Tetsushi Sonobe

Abstract

Although consensus exists that industrial development is imperative in developing countries to reduce poverty and to attain sustainable economic growth, there is no consensus on how to develop industries in developing countries. Based on empirical findings, emerging literature on industrial development stresses the accumulation of human capital by expanding general education to foster industries in developing countries. Using primary data, the present paper empirically demonstrates that the application of modern production and marketing techniques is mainly determined by the general human capital of the entrepreneurs measured by their years of schooling. Consequently, relatively highly educated entrepreneurs perform better than others. Importantly, the findings hold true even after treating the years of schooling of the entrepreneurs as a function of their fathers' education and profession. The findings strongly suggest that international donor agencies should invest in human capital accumulation by expanding general education to develop industries in developing countries.

Suggested Citation

  • Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2012. "The role of human capital in firm performance: evidence from the engineering industry in Bangladesh," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 16(3/4), pages 245-262.
    • Handle: RePEc:ids:ijeima:v:16:y:2012:i:3/4:p:245-262
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    Cited by:

    1. Stephen Dauda*, Rasaki, 2021. "Human Capital Development And Utilization: The Panaceas For Industrial Development In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(1), pages 60-77, June.

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