ENHANCING INFLUENCE OF HUMAN CAPITAL ON FIRM INNOVATION: ROLE OF EMPLOYMENT RELATIONSHIP

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.