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Aspects regarding human capital and its influence on the competitiveness of firms in the European Union


  • Larisa PANTEA

    () (PhD, associate professor at International Institute of Management „IMI-NOVA”, Chisinau, Republic of Moldova)


Human capital represents the source of competitive advantage of a firm. The importance of human capital is acknowledged by firms. However, in an increasingly complex and turbulent environment many organizations face a lot of issues regarding the attraction, retaining and development of their most valuable asset. The approach chosen to solve above mentioned issues influences the competitiveness of the firm. The goal of the paper is to analyse the level and extent of theoretical research regarding the influence of human capital on the competitiveness of the firms, as well as issues related to firms’ human capital development. Moreover, the paper presents the results of studies conducted in different European countries (comprising United Kingdom, Ireland, Netherlands and Sweden) regarding the relationship between investment in employee training and the effects on company performance. It elucidates that training generates positive effects on sales, value added, productivity, net profitability etc. Although the link between investment in human capital and company’s performances is evident, the reciprocal connection – between companies’ investment activities and skills of employees was pointed out.

Suggested Citation

  • Larisa PANTEA, 2019. "Aspects regarding human capital and its influence on the competitiveness of firms in the European Union," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11(3), pages 198-210, Octomber.
  • Handle: RePEc:jes:wpaper:y:2019:v:11:i:3:p:198-210

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    References listed on IDEAS

    1. Robin Roslender & Joanna E. Stevenson & Howard Kahn, 2012. "Towards recognising workforce health as a constituent of intellectual capital: Insights from a survey of UK accounting and finance directors," Accounting Forum, Taylor & Francis Journals, vol. 36(4), pages 266-278, December.
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    7. Roslender, Robin & Stevenson, Joanna E. & Kahn, Howard, 2012. "Towards recognising workforce health as a constituent of intellectual capital: Insights from a survey of UK accounting and finance directors," Accounting forum, Elsevier, vol. 36(4), pages 266-278.
    8. Wim Groot, 1999. "Productivity effects of enterprise-related training," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 369-371.
    9. Martin McCracken & Ronan McIvor & Raymond Treacy & Tony Wall, 2018. "A study of human capital reporting in the United Kingdom," Accounting Forum, Taylor & Francis Journals, vol. 42(1), pages 130-141, March.
    10. Leiponen, Aija, 1996. "Education, Tenure and Innovation in Manufacturing Firms," Discussion Papers 561, The Research Institute of the Finnish Economy.
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