Abstract:
In numerous organizations, investment in human capital has not been focused as compare to
other organizations and countries. A few organizations who focused on investment in human
capital and also work on employment relationship for firm innovation. Innovation is the most
important part for any firm because it leads the firm towards profitability and success.
This study examines the impact of human capital and employment relationship on firm
innovation. Study also identifying how these factors influencing on innovation of the
company. This research also define the direct or indirect effect which means finding the
impact of mediation or without mediation as well on Pharmaceutical sector of Karachi at
National Level companies.
Methodology & Design
This study is basically a descriptive study and shows cause and effect relationship. This
research is defined as a quantitative research which makes use of primary data and data
collecting method is survey questionnaires. Closed end questionnaires were developed to get
the data required from the respondents.
Findings
The finding shows that human capital directly influencesfirm innovation and there’s a partial
mediation of employment relationship between human capital and firm innovation. .
Limitations
This analysis is limited to a precise number of responses that were collected in a specific time
frame. Data has only been collected from those employees who are working on the
management level of the pharmaceutical sector of Karachi only at national level companies.
Recommendations
Future analysis ought to look at others mediators than employment relationship that might
modifies the human capital on firm innovation. Future analysis ought to incorporate an
additional intensive illustration of other level of employees not only the management level
and also focus on other management level or other levels who working on other sectors.
