HUMAN CAPITAL AND PERFORMANCE OF FIRMS: EVIDENCE FROM THE CHEMICAL INDUSTRY OF IRAN

This paper contributes to the literature on the relationship between human capital and organizational performance. Annual data on firms in the chemical industry of Iran is used. Study time period is 1331-7001. Human Capital play an important role in the performance of organization and firms through changing individual capabilities and skills. Human capital allow employee to participate more effectively in the economy and society, access opportunities to conduct business or more simply just to engage and transact more efficiently. In the workplace and firms, these capitals seem to be crucial variable explaining the difference between performances of different industries. In this paper, the performance index is growth of firms and human capital measure is the labor forces are trained in various levels. Result shows that human capital significantly and positively related to performance but effect of technician is higher than skill worker.

Keywords:

performance , human capital , chemical industry