The Role of Human Capital on Enhancing Organizational Information Technology Capabilities: An Alternative Approach

Abstract

In a constantly changing world, the organizational IT capabilities are progressively perceived as vital enablers of superior organizational productivity. Despite the often-accentuated importance of IT human assets, their exact role and connection with IT capabilities remain somewhat nebulous. Consequently, this research explores the specificities of IT human capital and its influence on IT capabilities, deriving insights from human capital literature and theories grounded in vision-oriented dynamic resources and capabilities. This investigation has considered responses from 246 Chief Information Officers employed in Brazilian public institutions and has utilized structural equation modelling (CB-SEM) for analysis. It has determined that IT human capital encompasses multidimensional attributes that include interpersonal competencies, technical expertise, and team members' engagement with technology. Furthermore, IT human capital is portrayed as a precursor to IT capabilities, not an intrinsic element, as commonly proposed in the scholarly domain. The research proposes a pragmatic, empirically validated approach to gauge and evaluate the impact of IT human resources. It also advocates potential strategies for organizations to source and cultivate IT human capital ready to confront the perpetual dynamism of today's environments.

Keywords

• IT human capital; IT capabilities; structural equation modeling; Public sector