Human capital and organizational performance: A moderation study through innovative leadership

Abstract

The present study investigates the impact of human capital capacity, human capital knowledge, and human capital skills on organisational performance in the hospitality industry. This study also investigates the moderating role of innovative leadership in the relationship of human capital capacity, human capital knowledge, and human capital skills with organisational performance. Data was collected through survey questionnaires from 356 managers working in small and middle-level hotels located in the four districts of Saudi Arabia. The present study used convenience sampling, and the data analysis method was partial least square structural equation modelling. Results of this study demonstrate that human capital capacity, human capital knowledge and human capital skills have a significant positive relationship with organizational performance. Results also confirmed a moderation effect of innovative leadership between human capital knowledge and organizational performance. However, the moderation effect of innovative leadership between human capital capacity and human capital skills with organizational performance was not confirmed. Finally, the theoretical contribution, practical implications and future commendations are also discussed.

Keywords

• Human capital capacity
• human capital knowledge
• human capital skills
• organisational performance
• innovative leadership