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http://dx.doi.org/10.13106/jafeb.2021.vol8.no12.0473

The Role of Training and Absorptive Capacity in Mediating Human Capital Dimensions and Organizational Performance: Evidence from Pakistan  

BHUTTO, Sana Arz (Faculty of Finance and Administrative Sciences, Al-Madinah International University)
JAMAL, Yasir (Department of Business Administration, Mohammed Ali Jinnah University)
RAFIQ, Asim (Faculty of Management Sciences, Hamdard Institute of Management Sciences)
MEHMOOD, Kashif (Department of Business Administration, Bahria University)
HUSSAIN, Munir (Department of Entrepreneurship, Institute of Business Management)
ALI, Amjad (Benazir Bhutto Shaheed University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.12, 2021 , pp. 473-484 More about this Journal
Abstract
This study aims to examine the role of training and absorptive capacity as a mediator to examine the impact of human capital dimensions on the performance of an organization. This study employs the quantitative approach for analysis. A sample of 208 respondents was collected from the textile factories based in Karachi and Faisalabad. Data was analyzed using the PLS-SEM technique. PLS-SEM algorithm was used to check the validity and reliability of the data. PLS-SEM bootstrapping was used for studying the impact. The results show that the skills have an insignificant impact on organizational performance. Education and skills have an insignificant indirect impact on the performance of an organization. The research findings show that the human capital dimensions are full and partially mediated via absorptive capacity and training. The findings revealed that if we implement one by one dimension of human capital then it will not cause any increase in the organization's performance but if we implement all dimensions then it results in optimal performance. Thus, this study suggests adopting effective training techniques and creating absorptive capacity in an organization to increase the performance of an organization. The findings of this study significantly contribute to the existing body of knowledge.
Keywords
Human Capital Dimensions; Organizational Performance; Textile Industry; Textile Exports; Absorptive Capacity;
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