Relationship between human capital and firm performance: a study of telecom equipment companies

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Date
2010
Authors
Lim, Soon Huat
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Abstract
This study examined the relationship between two human capital metrics, that is education and experience with firm performance of two companies in the sector of telecom equipment manufacturing in Kuala Lumpur. The subjects were 98 sales and marketing employees in both the telecom equipment companies. Responses from this 98 employees (Sales Executive / Manager, Account Executive / Manager and General Manager of Sales and Marketing) of two internationally renowned companies were used in this correlational study between selected demographic factors (level of education and years of experience) and the firm performance. The results of regression analysis showed that both education and experience in both companies were found to positively impact firm performance, with firm performance more highly correlated to level of education than experience. It seems logical that the human capital needed to enhance firm performance would be more likely to arise from level of education than years of experience in the same industry.
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Keywords
Business Administration , Firm Performance , Human Capital
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