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Effect of Human Capital on Competitive Advantage With Mediating Role of Organizational Innovation Goals in the Case of SMEs: Ethiopia
Abstract
With an emphasis on the mediating function of organizational innovation goals, this study examines the connections between competitive advantage, human capital, and organizational innovation goals. The study show that human capital has a major impact on both competitive advantage and organizational innovation goals. The significance of investing in employee skills and expertise is highlighted by the substantial correlation between human capital and competitive advantage, which is measured at 0.39. Furthermore, with a computed mediation value of 0.50, the research shows that Organizational Innovation Goals indirectly affect Competitive Advantage through Human Capital. The coefficients relating Organizational Innovation Goals to Competitive Advantage (0.62) and Human Capital to Organizational Innovation Goals (0.70) are multiplied to produce this value. When direct and indirect impacts are combined, the whole effect yields a whole influence value of 0.89, indicating that strategic innovation projects and human capital development must be integrated for competitive success.
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