Human Capital Development as a Predictor Firm Growth in Manufacturing Companies in Lagos State
Downloads
The main purpose of this study was to investigate the effect of human capital development on firm growth in Manufacturing companies, Lagos State. The study employed descriptive survey design and the target population of the study was 2,355 employees from the three selected manufacturing companies listed in the Nigeria Stock Exchange. The simple random sampling method was used in selecting the respondents in each of the selected manufacturing company. The sample size was 418. The study used questionnaire to collect the required data. Descriptive statistics was used mainly to summarize the data. Statistical Package for Social Science (SPSS) was used for analysing data. Data presentation was through the use of tables. Regression analysis was used to establish the relationship between the independent and dependent variables. The study found out that employee work experience had no significant effect on organizational output of selected manufacturing companies in Lagos State, Nigeria (β = 0.045, t = 1.122, p > 0.05. Employee training had a significant effect on market share of selected manufacturing companies in Lagos State, Nigeria (β = 0.101, t = 2.354, p < 0.05). In addition, employee compensation had a significant effect on organisational profit of selected manufacturing companies in Lagos State, Nigeria (β = 0.225, t = 4.515, p < 0.05). The study recommends that managers of selected manufacturing companies should improve the staff competence according to the company’s expectation; providing training to the employee by emphasizing on the hard skills and soft skills, as well as expertise skill; understand the amount of compensation in accordance with the environment of the manufacturing industry in Nigeria in order to encourage the employees in improving their performance.
Downloads
Adebanjo, J. F., Oluwasegun, E., Adegbola, O., Asamu, F., Peter, O., Ben-Caleb, E., ... & Eluyela, F. D. (2019). Impact of exchange rate on the manufacturing sector in Nigeria. International Journal of Mechanical Engineering and Technology (IJMET), 10(2), 1568-1583.
Afrah, N. A. (2016). The role of human capital development on organizational performance: Case Study Benadir University, Mogadishu, Somalia. European Journal of Business and Management, 8(4), 120-124.
Agnolucci, P., & Arvanitopoulos, T. (2019). Industrial characteristics and air emissions: Long-term determinants in the UK manufacturing sector. Energy Economics, 78, 546-566.
Ajisafe, R. A., Orifa, R. A., & Balogun, J. A. (2015). Influence of human capital management on organisational performance. Journal of Resource, 18(2), 27-35.
Al Karim, R. (2019). Impact of different training and development programs on employee performance in Bangladesh perspective. International Journal of Entrepreneurial Research, 2(1), 8-14.
Arifin, S., & Putra, A. R. (2020). Employee Performance Development through Work Experience, Work Ethic, Compensation. IOSR Journal of Business and Management, 22(7), 39-45.
Armstrong, M. (2016). Service Compensation Management, translated by Seyed Reza Seyed Javadin, Behrouz Purwali and Elham Jamali. Tehran: Mehraban Book Institute.
Asaleye, A. J., Adama, J. I., & Ogunjobi, J. O. (2018). Financial sector and manufacturing sector performance: evidence from Nigeria. Investment Management and Financial Innovations, (15, Iss. 3), 35-48.
Attanasio, O., Meghir, C., & Nix, E. (2020). Human capital development and parental investment in India. The Review of Economic Studies, 87(6), 2511-2541.
Bae, K. H., Kang, J. K., & Wang, J. (2015). Does increased competition affect credit ratings? A reexamination of the effect of Fitch’s market share on credit ratings in the corporate bond market. Journal of Financial and Quantitative Analysis, 50(5), 1011-1035.
Bakotić, D. (2016). Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), 118-130.
Ball, R., Gerakos, J., Linnainmaa, J. T., & Nikolaev, V. V. (2015). Deflating profitability. Journal of Financial Economics, 117(2), 225-248.
Bátiz-Lazo, B., & Billings, M. (2012). New perspectives on not-for-profit financial institutions: Organisational form, performance and governance. Business History, 54(3), 309-324.
Bogren, M., von Friedrichs, Y., Rennemo, Ø., & Widding, Ø. (2013). Networking women entrepreneurs: fruitful for business growth?. International Journal of Gender and Entrepreneurship, 2(8), 1-17.
Bravo-Biosca, A., Criscuolo, C., & Menon, C. (2016). What drives the dynamics of business growth?. Economic Policy, 31(88), 703-742.
Cai, J., & Szeidl, A. (2018). Interfirm relationships and business performance. The Quarterly Journal of Economics, 133(3), 1229-1282.
Castaño, M. S., Méndez, M. T., & Galindo, M. Á. (2016). Innovation, internationalization and business-growth expectations among entrepreneurs in the services sector. Journal of Business Research, 69(5), 1690-1695.
Chaudhry, N. I., Jariko, M. A., Mushtaque, T., Mahesar, H. A., & Ghani, Z. (2017). Impact of working environment and training & development on organization performance through mediating role of employee engagement and job satisfaction. European Journal of Training and Development Studies, 4(2), 33-48.
Chen, J., Jiao, L., & Harrison, G. (2019). Organisational culture and enterprise risk management: The Australian not‐for‐profit context. Australian Journal of Public Administration, 78(3), 432-448.
Ejemeyovwi, J. O., Osabuohien, E. S., & Osabohien, R. (2018). ICT investments, human capital development and institutions in ECOWAS. International Journal of Economics and Business Research, 15(4), 463-474.
Fletcher, L., Alfes, K., & Robinson, D. (2018). The relationship between perceived training and development and employee retention: the mediating role of work attitudes. The International Journal of Human Resource Management, 29(18), 2701-2728.
Gielnik, M. M., Zacher, H., & Schmitt, A. (2017). How small business managers’ age and focus on opportunities affect business growth: A mediated moderation growth model. Journal of Small Business Management, 55(3), 460-483.
Gruzina, Y., Firsova, I., & Strielkowski, W. (2021). Dynamics of human capital development in economic development cycles. Economies, 9(2), 67-81.
Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human resource management review, 24(1), 1-4.
Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International journal of business and social science, 5(2), 302-309.
Hanaysha, J. (2016). Examining the effects of employee empowerment, teamwork, and employee training on organizational commitment. Procedia-Social and Behavioral Sciences, 229, 298-306.
Husaini, D. H., & Lean, H. H. (2015). Does electricity drive the development of manufacturing sector in Malaysia?. Frontiers in Energy Research, 3, 18.
Ibrahim, A. A., & Dahie, A. M. (2016). The impact of training and development on employee performance (united bottling company case study) in Mogadishu-Somalia. International Journal of Multidisciplinary Research (IJMR), 39(5), 2455-3662.
Ibrahim, R., Boerhannoeddin, A., & Bakare, K. K. (2017). The effect of soft skills and training methodology on employee performance. European Journal of Training and Development, 9(3), 54-68.
Jha, V. (2016). Training and development program and its benefits to employee and organization: A conceptual study. International Journal of Scientific Research in Science and Technology, 2(5), 80-86.
Khan, A. A., Abbasi, S. O. B. H., Waseem, R. M., Ayaz, M., & Ijaz, M. (2016). Impact of training and development of employees on employee performance through job satisfaction: A study of telecom sector of Pakistan. Business Management and Strategy, 7(1), 29-46.
Kuznetsova, I. G., Bulyga, R. P., Rakhmatullina, L. V., Titova, S. V., Shichiyakh, R. A., & Zakirov, R. A. (2019). Problems and prospects of human capital development in modern Russia. 2(1), 701-728.
Lin, H. C., Liang, S. H., Chiu, S. C., & Chen, C. Y. (2019). Leverage and employee compensation–the perspective of human capital. International Journal of Managerial Finance, 2(1), 102-115.
Loyalka, P., Huang, X., Zhang, L., Wei, J., Yi, H., Song, Y., ... & Chu, J. (2016). The impact of vocational schooling on human capital development in developing countries: evidence from China. The World Bank Economic Review, 30(1), 143-170.
Maduenyi, S., Oke, A. O., Fadeyi, O., & Ajagbe, A. M. (2015). Impact of organisational structure on organisational performance.
Marks, D., & Thomalla, F. (2017). Responses to the 2011 floods in Central Thailand: perpetuating the vulnerability of small and medium enterprises?. Natural Hazards, 87(2), 1147-1165.
Mazelis, L. S., Lavrenyuk, K. I., Krasko, A. A., & Zagudaeva, O. N. (2018). A conceptual model of the regional human capital development. International Transaction Journal of Engineering, Management and Applied Sciences and Technologies, 9(4), 477-494.
Michael, O. O., & Zaid, A. A. (2014). An empirical analysis of human capital development and organizational performance in banking sector: A Nigerian experience. European Journal of Business and Management, 1(4), 20-34.
Muller, P., Caliandro, C., Peycheva, V., Gagliardi, D., Marzocchi, C., Ramlogan, R., & Cox, D. (2015). Annual report on European SMEs 2014/2015: SMEs start hiring again.
Murtiningsih, R. S. (2020). The Impact of Compensation, Training &Development, and Organizational Culture on Job Satisfaction and employee Retention. Indonesian Management and Accounting Research, 19(1), 33-50.
Muya, T. W., & Gathogo, G. (2016). Effect of working capital management on the profitability of manufacturing firms in Nakuru town, Kenya. International Journal of Economics, Commerce and Management, 4(4), 1082-1105.
Nwaeke, L. I., & Obiekwe, O. (2017). Impact of manpower training and development on organizational productivity and performance: A theoretical review. European Journal of Business and Management, 9(4), 153-159.
Ojokuku, R. M., & Sajuyigbe, A. S. (2015). Effect of human capital development on the performance of small and medium scale enterprises in Nigeria. Journal of emerging trends in educational research and policy studies, 6(1), 88-93.
Orishede, F. (2020). Impact of strategic planning on organisational growth in the nigeria manufacturing sector. African Journal of Social and Behavioural Sciences, 10(1), 1-15.
Palmer, K., Tate, J. E., Wadud, Z., & Nellthorp, J. (2018). Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan. Applied energy, 20(9), 108-119.
Pinho, J. C., Rodrigues, A. P., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of management development, 1(4), 42-58.
Qureshi, M. O., & Sajjad, S. R. (2015). An Empirical Analysis of the Impact of Compensation on Job Performance and Work-Family Conflict in the Kingdom of Saudi Arabia a Correlation Model. European scientific journal, 11(4), 170-187.
Ratnawati, E., Sukidjo, S., & Efendi, R. (2020). The Effect of Work Motivation and Work Experience on Employee Performance. International Journal of Multicultural and Multireligious Understanding, 7(8), 109-116.
Regnier, S., & Ridley, D. B. (2015). Forecasting market share in the US pharmaceutical market. nature reviews drug discovery, 14(9), 594-595.
Rehman, M. A., Seth, D., & Shrivastava, R. L. (2016). Impact of green manufacturing practices on organisational performance in Indian context: an empirical study. Journal of cleaner production, 13(7), 427-448.
Richard, O. C., Stewart, M. M., McKay, P. F., & Sackett, T. W. (2017). The impact of store-unit–community racial diversity congruence on store-unit sales performance. Journal of Management, 43(7), 2386-2403.
Rodriguez, J., & Walters, K. (2017). The importance of training and development in employee performance and evaluation. World Wide Journal of Multidisciplinary Research and Development, 3(10), 206-212.
Roig-Tierno, N., Alcazar, J., & Ribeiro-Navarrete, S. (2015). Use of infrastructures to support innovative entrepreneurship and business growth. Journal of Business Research, 68(11), 2290-2294.
Romaniuk, J., Dawes, J., & Nenycz-Thiel, M. (2018). Modeling brand market share change in emerging markets. International Marketing Review, 10(2), 194-210.
Rozi, A., & Sunarsi, D. (2020). The Influence of Motivation and Work Experience on Employee Performance at PT. Yamaha Saka Motor in South Tangerang. Jurnal Office, 5(2), 65-74.
Sodirjonov, M. M. (2020). Education as the most important factor of human capital development. Theoretical & Applied Science, (4), 901-905.
Sorrell, S. (2015). Reducing energy demand: A review of issues, challenges and approaches. Renewable and Sustainable Energy Reviews, 4(7), 74-82.
Sowunmi, S. O., Eleyowo, I. O., Salako, M. A., & Oketokun, F. O. (2015). Human resource development as a correlate of performance of the banking industry in Ogun State, Nigeria. Journal of Economics and international Finance, 7(5), 112-126.
Sucuahi, W., & Cambarihan, J. M. (2016). Influence of profitability to the firm value of diversified companies in the Philippines. Accounting and Finance Research, 5(2), 149-153.
Tan, Y., Floros, C., & Anchor, J. (2017). The profitability of Chinese banks: impacts of risk, competition and efficiency. Review of Accounting and Finance, 2(6), 143-186.
Yapa Abeywardhana, D. (2016). Impact of capital structure on firm performance: Evidence from manufacturing sector SMEs in UK. Available at SSRN 2816499.
Zaika, S., & Gridin, O. (2020). Human capital development in the agricultural economy sector. Zaika, S., Gridin, O.(2020). Human Capital Development in the Agricultural Economy Sector. Technology Audit and Production Reserves, 1(4), 51-64.
Zhuang, H. (2017). The effect of foreign direct investment on human capital development in East Asia. Journal of the Asia Pacific Economy, 22(2), 195-211.
Copyright (c) 2022 International Journal of Scientific Research and Management
This work is licensed under a Creative Commons Attribution 4.0 International License.