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A systematic review of literature on Human capital investment and its significance for human resource development

Author

Listed:
  • Lawrence Arokiasamy

    (Persiaran UTP)

  • Takemi Fujikawa

    (OtemonGakuin University)

  • Shishi Kumar Piaralal

    (Open University Malaysia Kelana Centre Point)

  • Thilageswary Arumugam

    (International University Malaya Wales City Campus, Federal Territory of Kuala Lumpur)

Abstract

With rising globalization and the overcrowding of the employment market as a result of the recent crisis in numerous economies throughout the world, human capital is receiving more attention. To hasten economic progress by investing the necessary time and effort, both industrialized and emerging nations lay a higher focus on human capital development. Building human capital is therefore the crucial way to participate on the international stage. Companies should invest the essential resources in increasing human capital since it has a big impact on performance. From several critical viewpoints, this research investigates the level where human capital has straight implications on corporate performance. This study also aims to examine 60 publications that are concerned with human capital. A thorough assessment of the sequential review based on the year of each publication is also provided in this paper. Also, each study paper’s evaluation is exposed. This study also focused on and reviews the topic knowledge utilizing a systematic literature review. Eventually, a model explaining the connection among human capital as well as company performance is developed in this work. The finding of the study reveal the impact of human capital on corporate performance and the value of a strong workplace and human resources in enhancing job performance. Human Resource Management (HRM) practices that link employee engagement in the organization.

Suggested Citation

  • Lawrence Arokiasamy & Takemi Fujikawa & Shishi Kumar Piaralal & Thilageswary Arumugam, 2023. "A systematic review of literature on Human capital investment and its significance for human resource development," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1810-1826, October.
    • Handle: RePEc:spr:ijsaem:v:14:y:2023:i:5:d:10.1007_s13198-023-01985-2
    DOI: 10.1007/s13198-023-01985-2
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    References listed on IDEAS

    as
    1. Frank Corvers, 1997. "The impact of human capital on labour productivity in manufacturing sectors of the European Union," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 975-987.
    2. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    3. Mikaela Backman, 2014. "Human capital in firms and regions: Impact on firm productivity," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 557-575, August.
    4. Alžbeta Kucharčíková & Martin Mičiak & Miloš Hitka, 2018. "Evaluating the Effectiveness of Investment in Human Capital in E-Business Enterprise in the Context of Sustainability," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    5. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.
    6. Tasawar Nawaz, 2019. "Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks," Journal of Business Ethics, Springer, vol. 157(2), pages 567-587, June.
    7. Ngoc Phu Tran & Duc Hong Vo, 2020. "Human capital efficiency and firm performance across sectors in an emerging market," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1738832-173, January.
    8. Arnd Vomberg & Christian Homburg & Torsten Bornemann, 2015. "Talented people and strong brands: The contribution of human capital and brand equity to firm value," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 2122-2131, December.
    9. Adewale Osibanjo & Anthonia Adeniji & Odunayo Salau & Tolulope Atolagbe & Abisola Osoko & Ogheneofejiro Edewor & Julia Olowu, 2020. "Bolstering human capital management and engagement in the health sectors," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1794676-179, January.
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