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    Relationship between Human Capital and Business Performance of Pharmaceutical Firms in Kenya

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    Date
    2012-05
    Author
    Mark, Ngari J.
    Robert, Gichira
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    Abstract
    Human capital is a range of valuable skills and knowledge a person has accumulated over time and it is the resourcefulness that gives an organization a competitive advantage since it cannot be imitated by the competitors and therefore it is a strategic resource and an asset to the organization. There is no doubt human capital plays a crucial role in the current ever-challenging and aggressive business environment, particularly in knowledge-intensive organizations such as pharmaceutical industry. The organizations that aspire to be successful and competitive need to demand and find better ways to improve their business performance by utilizing their human capital. This study sought to establish the relationship between human capital and business performance of pharmaceutical firms in Kenya. Three research questions were used to test the relationship of the components of Human capital with the Business performance of the pharmaceutical companies in Kenya. Data was collected from 19 pharmaceutical firms. Pearson correlation and regression were used to test the relationship and significance. The findings indicated that the three dimensions of Human capital that is learning and education, experience and expertise, innovation and creation have positive and significance relationship with business performance of pharmaceutical firms’. However learning and education was the most significant variable. Therefore, accounting for human capital is essential for the improved business performance of pharmaceutical firms.
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    http://ir.kabarak.ac.ke/handle/123456789/941
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