On the relationship between human capital and firm performance
Main Article Content
Abstract
This paper applies the ordinary least square regression model to estimate the effects of the
human capital on the business performance of small and medium enterprises (SMEs) in
Vietnam, emphasizing on the human capital of the firm owner. We exploit the cross-sectional
data of SMEs for the year 2009. The estimated results show that basic and professional
education of the firm owner are important factors affecting the success of the firm. Further,
experience in owning a business can help the firm owners enhance their performance. Finally,
knowledge from learning is seen to have a strong effect on entrepreneurial performance.
Article Details
Keywords
Human capital, firm performance, SMEs, Vietnam
References
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15. Gibb, A. (1997), Small Firms’Training and Competitieveness: Buiding on the Small Business as a Learning Oganization, International Small Business Journal,15(3), pp.13 – 29.
16. Habar, S. and Reichel, A. (2007), The cumulative nature of the entrepreneurial process: The contribution of human capital, planning and environment resources to small venture perfomance, Journal of Business Venturing, 22(1), pp.119 – 145.
17. Hultink, E.J. and Robbeb, H.S.J.(1995), Measuring new product success : The difference that Time perpective makes, Journal of Product Innovation Management, 12(5), pp.392 – 405.
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20. Mengistae, T. (2006), Competiton and entrepreneurs’ human capital in small business longevity and growth, The Journal of Development Studies, 42(5), pp.812.
21. Mintzberg, H. (1988), The simple stucture, In J.B. Quinn, H. Mintzeberg, & R.M. James(Eds), The strategy process: Concepts,contexts and cases (pp.532 – 539), Englewood Cliffs, NJ: Prentice – Hall.
22. Pennings, J.M., Lee, K. and Van Witteloostuijn, A. (1998), Human capital, Social capital, and Firm Dissolution, Academy of Management Journal, 41, pp. 425 – 440.
23. Pickles, A.R. and O’Farrell. P.N. (1987), An Analysis of Entrepreneurial Behavior from Male Work Histories, Regional Studies, 21(5), pp.425-444.
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25. Sapienza, H.J. & Grimm, C.M. (1997), Founder characteristics, start-up processes, and strategy/ structure variables as predictors of shortline railroad performance, Entrepreneurship Theory and Practice, 22(1), pp.5-24.
26. Shane, S. (2000), Prior knowledge and the discovery of the entrepreneurial opportunities, Organization Science, 11, pp.448-469.
27. Shane, S. and Venkataraman, S. (2000), The promise of entrepreneurship as a field of research, Academy of Management Review, 25, pp.217-226.
28. Sonnetag, S. and Frese, M. (2002), Performance concepts and performance theory, In S. Sonnetag (Ed.), Psychological management of individual performance: A handbook in the psychology of management in organizations, pp.3-25, Chichester: Wiley.
29. Steiner, M.P. & Solem, O. (1988), Factors for success in small manufacturing firms, Journal of Small Business Management, 26(1), pp.51 -56.
30. Storey, D.J (1994), Understanding the small business sector, London: International Thomson Business Press.
31. Van der Sluis, J., Van Praag, C.M. and Vijiverberg, W. (2003), Entreneurship selection and performance: A meta-analysis of the impact of education in industrialized countries, The World Bank Economic Review 2005, 19(2), pp.225-261.
32. Van Praag, C.M (2005), Successful Entrepreneurship: Confronting Economic Theory with Emprirical Evidence, Edward Elgar, London, England.
33. Vesper, K.H. (1980), New Venture Strategies, New York: Prentice Hall.
34. Young, J. E and Sexton, D. L (1997), Entrepreneurial Learning: A Conceptual Framework, Journal of Enterprising Culture, 5(3), pp.223-248.
2. Batjargal, B. (2005), Entrepreneurial versatility, resources and firm performance in Russia: A panel study, International Journal of Entrepreneuship and Innovation Management, 5(3,4), pp.284.
3. Becker, G. S. (1993), Human capital: A theoretical and empirical analysis with special reference to education. 3rd. Chicago: University of Chicago Press.
4. Beckman, C.M. and Burton, M.D. (2005), Founding the Future : The Evolution of Top Management Teams from Founding to IPO, Working Paper.
5. Bosma, N. et al. (2000), Determinants of Successful Entrepreneurship, SCALES (Scientific Analysis of Entrepreneurship and SMEs).
6. Bosma, N. et al. (2004), The Value of Human and Social Capital Investments for the Business Performance of Startups, Small Business Economics , 23(3), pp. 227-236.
7. Bruederl,J. et al. (1992), Su v.v...l chances of newly founded business organizations, American Sociological Review, 57, pp.227-242.
8. Brush, C.G et al. (2001), From initial idea to unique advantage : the entrepreneurial challenge of constructing a resource base, Academy of Management Excutive,15, pp. 64 – 78.
9. Cohen, W. and Levinthal, D. (1990), Absorptive capacity: A new perspective on learning and innovation, Administrative Science Quarterly, 35(1), pp.128 – 153.
10. Colombo, M.G. and Grilli, L. (2005), Founders’human capital and the growth of new technology – based firm: A competence – based view, Research Policy,34(6), pp.795 – 801.
11. Cooper, A.C. et al. (1994), “Initial human and financial capital as predictors of new venture performances” , Journal of Business Venturing, 9, pp. 371-395.
12. Cooper, A.C. et al. (1997), Financial Capital as Predictors of New Venture Performance, The Journal of Private Equity, Winter, Vol. 1, No. 2, pp. 13-30.
13. Deakins, D. (1996), Entrepreneuship and Small Firms, Maidenhead: McGraw.
14. Frese, M. et al. (2006), Business owners’ action planning and its relationship to business success in three african country, Giessen : Dept.of Psychology,manuscript under review.
15. Gibb, A. (1997), Small Firms’Training and Competitieveness: Buiding on the Small Business as a Learning Oganization, International Small Business Journal,15(3), pp.13 – 29.
16. Habar, S. and Reichel, A. (2007), The cumulative nature of the entrepreneurial process: The contribution of human capital, planning and environment resources to small venture perfomance, Journal of Business Venturing, 22(1), pp.119 – 145.
17. Hultink, E.J. and Robbeb, H.S.J.(1995), Measuring new product success : The difference that Time perpective makes, Journal of Product Innovation Management, 12(5), pp.392 – 405.
18. Jo, H. and Lee, J. (1996),The relationship between an entrepreneur’s background and perfomance in a new venture, Technovation, 16(4), pp.161 – 171.
19. Jovanovic, B. (1982), Selection and Evolution of Industry, Economectrica, 50, pp.649 – 670.
20. Mengistae, T. (2006), Competiton and entrepreneurs’ human capital in small business longevity and growth, The Journal of Development Studies, 42(5), pp.812.
21. Mintzberg, H. (1988), The simple stucture, In J.B. Quinn, H. Mintzeberg, & R.M. James(Eds), The strategy process: Concepts,contexts and cases (pp.532 – 539), Englewood Cliffs, NJ: Prentice – Hall.
22. Pennings, J.M., Lee, K. and Van Witteloostuijn, A. (1998), Human capital, Social capital, and Firm Dissolution, Academy of Management Journal, 41, pp. 425 – 440.
23. Pickles, A.R. and O’Farrell. P.N. (1987), An Analysis of Entrepreneurial Behavior from Male Work Histories, Regional Studies, 21(5), pp.425-444.
24. Ronstadt, R. (1988), The corridor principle, Journal of Business Venturing, pp.31–40.
25. Sapienza, H.J. & Grimm, C.M. (1997), Founder characteristics, start-up processes, and strategy/ structure variables as predictors of shortline railroad performance, Entrepreneurship Theory and Practice, 22(1), pp.5-24.
26. Shane, S. (2000), Prior knowledge and the discovery of the entrepreneurial opportunities, Organization Science, 11, pp.448-469.
27. Shane, S. and Venkataraman, S. (2000), The promise of entrepreneurship as a field of research, Academy of Management Review, 25, pp.217-226.
28. Sonnetag, S. and Frese, M. (2002), Performance concepts and performance theory, In S. Sonnetag (Ed.), Psychological management of individual performance: A handbook in the psychology of management in organizations, pp.3-25, Chichester: Wiley.
29. Steiner, M.P. & Solem, O. (1988), Factors for success in small manufacturing firms, Journal of Small Business Management, 26(1), pp.51 -56.
30. Storey, D.J (1994), Understanding the small business sector, London: International Thomson Business Press.
31. Van der Sluis, J., Van Praag, C.M. and Vijiverberg, W. (2003), Entreneurship selection and performance: A meta-analysis of the impact of education in industrialized countries, The World Bank Economic Review 2005, 19(2), pp.225-261.
32. Van Praag, C.M (2005), Successful Entrepreneurship: Confronting Economic Theory with Emprirical Evidence, Edward Elgar, London, England.
33. Vesper, K.H. (1980), New Venture Strategies, New York: Prentice Hall.
34. Young, J. E and Sexton, D. L (1997), Entrepreneurial Learning: A Conceptual Framework, Journal of Enterprising Culture, 5(3), pp.223-248.