“Developing human capitals in today's entrepreneurs: a practitioner perspective”
| Published date | 06 July 2020 |
| Pages | 681-702 |
| Date | 06 July 2020 |
| DOI | https://doi.org/10.1108/JIC-08-2019-0202 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & Finance,Accounting/accountancy,Behavioural accounting |
| Author | Alan Murray,Rosa Palladino |
“Developing human capitals in
today’s entrepreneurs:
a practitioner perspective”
Alan Murray
School of Business and Creative Industries, Paisley, UK, and
Rosa Palladino
Department of Law, University of Naples–Parthenope, Napoli, Italy
Abstract
Purpose–The mainobjective of this exploratory study is to analyze the range of human capitalsnecessary for
the modern entrepreneur and the nature of the barriers to effectively support the development of these capitals.
Human capital is one of the three dimensions of intellectual capital and this document examines the role of
education and training for entrepreneurial success.
Design/methodology/approach –Drawing on a broad review of the main contributions to research and
practice in the field of intellectual capital and entrepreneurship issues, we conducted a qualitative study using
semi-structured in-depth interviews on a sample of 10 professionals expert in business support. They represent
a cross section of the main corporate agencies in Scotland. In addition, an interview guide was used to ensure
that some questions, or “key questions”, were asked to all participants, also allowing for the flexibility to obtain
updated information.
Findings –The interviews identified 21 key human capitals needed by today’s entrepreneurs. However, the
study also identifies the existence of obstacles to providing effective support for the development of human
capital in the entrepreneur in terms of attention, process and resources.
Research limitations/implications –Research limitations–The study is based on data collected by a
sample of 10 professionals, according to a qualitative approach that focuses on a specific social field and
therefore the results cannot be immediately generalized to other fields.
Practical implications –Practical implications–The study identifies the key human capital needed to run a
successful company, directing the professional to direct support interventions more effectively in order to
increase productivity and improve success rates for its customers.
Social implications –The value the long-term benefits of even a marginal increase in the efficiency of
enterprise support to business through targeted entrepreneurial learning cannot be overstated.
Originality/value –There is a lack of empirical data linking the development of human capital and
entrepreneurship. This work has resonance for providers of enterprise support seeking to remain relevant to
the entrepreneurial development needs of the entrepreneur.
Keywords Entrepreneurship, Enterprise support, Intellectual capital, Human capital, Innovation,
Performance, Business
Paper type Research paper
1. Introduction
The critical role of intellectual capital (IC) for the entrepreneur in the creation of competitive
advantage is widely understood (Petty and Guthrie, 2000). Human capital is one of the three
dimensions of IC (Massaro et al., 2018): it includes the stock of knowledge and skills that
resides within individuals, where education and training are the most important forms of
investment in human capital (Becker, 2009). While measuring the return on investment of IC
for the firm can be challenging (Fitz-enz, 2000), research suggests that both entrepreneurial
activity and performance can undoubtedly be enhanced through education and training
focused on the development of entrepreneurial skills (Honig, 2004) and human capital (Duodu
and Rowlinson, 2019).
Indeed, entrepreneurship expresses the individual’s tension toward the search for new and
better business opportunities, through the search for the resources necessary to exploit these
Developing
human capitals
681
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 21 August 2019
Revised 11 April 2020
23 May 2020
Accepted 2 June 2020
Journal of Intellectual Capital
Vol. 22 No. 4, 2021
pp. 681-702
© Emerald Publishing Limited
1469-1930
DOI 10.1108/JIC-08-2019-0202
opportunities (Kirzner, 1973). This pr ocess can be supported through huma n capital
implementation and training strategies (Obisi and Anyim, 2012), which favor the exchange
of notions and open up opportunities for technological innovation (Hormiga et al., 2011).
Moreover, the authors who study how entrepreneurs manage to capture the opportunities
offered by technology, focused on the development of skills (Giampaoli et al., 2017). The
individual is the main driver of innovation, because through his or her knowledge and skills
their companies are able to effectively exploit technology for commercial gain. In this scenario,
Scotland has a diverse range of support services for entrepreneurs aimed at developing the
necessaryhuman capital,i.e. the skills, qualities, attributes,behaviorsand knowledge neededto
build and develop a successful business. However as will be demonstrated there are clear
barriers and challenges to this around focus, process and resources, which risk misaligning
these support tools from the corporateand market objectives.
Entrepreneurship and enterprise education are well-researched fields and there is also
considerable research examining the form which IC takes in organizations (Marr et al.,2004;
Subramaniam and Youndt, 2005;Pedro et al., 2018). However, there is a gap in the area of IC
relating to the entrepreneur and the SME (Cohen and Kaimenakis, 2007), which is under-
researched. IC incorporates a set of valuable capacities which engender value creation for the
firm (Nerdrum and Erikson, 2001) by acting as a catalyst for competitiv e advantage (S
anchez
et al., 2000). Very few researchers have explored the topic of IC in the domain of entrepreneurship
(Pe~
na, 2002), neglecting that knowledge management and IC development are positively
correlated to company performance, because they improve decision-making processes, market
response strategies and risk-management decisions (Bontis et al.,2000). Therefore, this study
contributes to the existing knowledgebase within the fieldof entrepreneurshipand adds to the
debate surrounding the relevance and effectiveness of the current approach to supportingthe
development of human capital in entrepreneurs (Jones, 2019). In terms of value the long-term
benefitsof even a marginal increasein the efficiency of enterprise support to business through
targeted entrepreneurial learning cannot be overstated.
The research objectives of this study are firstly to critically appraise and evaluate the
academicliterature relating to thekey ICs needed by the modern entrepreneur. In addition,this
paper aims to investigate and explore the views of a cross section of professional enterprise
support providers to determine what they consider to be the key capitals needed by today’s
entrepreneurand the barriers and challengesto supporting entrepreneurialdevelopment in the
individual.Considering the relevanceof IC for the development of entrepreneurship,this study
takes a professional perspective to answer these questions:
(1) What are the main key factors identified for IC destined to create competitive
advantages for the entrepreneur?
To answer these questions, we conducted semi-structured interviews on a sample of 10
Scottish business support professionals, based on the following themes:
THEME 1–What should be the aim of organizations supporting entrepreneurial
development in entrepreneurs?
THEME 2–What are the key human capitals (i.e. skills, qualities, attributes, behaviors and
knowledge) needed by the modern entrepreneur?
THEME 3–What are the key challenges and barriers to supporting the development of
entrepreneurial capitals?
THEME 4–How can these challenges be overcome in order to more effectively support
entrepreneurial capital development in the individual entrepreneur?
With the data obtained, we have attempted to identify recommendations for
improvements to the current approach to enterprise support for the development of
human capitals in the entrepreneur. This paper provides a comprehensive review of the
JIC
22,4
682
To continue reading
Request your trial