Original article Microeconomics

IMPORTANCE OF NON-COGNITIVE FACTORS FOR HUMAN CAPITAL DEVELOPMENT AND INNOVATION

Jasmina Misheva - PhD student at the Faculty of Economics and Business Administration of Sofia University „St. Kliment Ohridski“. ORCID 0000-0002-8396-4002
Received: 05 Apr 2023
Revised:
Published:
Downloads: 0
Citations: 0
Issue 1/2023
JEL E24 J24 О15
DOI https://doi.org/10.56497/etj2368105

Abstract

This study analyzes the non-cognitive factors of human capital development and their impact on innovation as an organizational created value. Hypotheses are presented on the direct, positive influence of six behavioral and psychological factors on innovation. A quantitative method was used to analyze the data collected through a survey, including 204 respondents working in the IT field in Bulgaria and other countries. The results of the proposed regression model show a statistically significant relationship between non-cognitive influence factors and innovation, revealing the importance and need to consider these elements when measuring, analyzing, and investing in human capital. This research provides a clear direction for further analysis of the importance of non-cognitive factors for human capital value creation and can be of practical use to organizations in their human capital development strategies and planning.

How to cite this article

Misheva, J. (2023). Znachenie na nekognitivnite faktori za razvitie na choveshkiya kapital i inovatsiite (Importance of non-cognitive factors for human capital development and innovation). Economic Thought Journal, 68 (1), 89-112 (in Bulgarian). https://doi.org/10.56497/etj2368105

References

Armstrong, M., & Baron, A. (2007). Human Capital Management. In: Encyclopedia of Sustainable Management. Kogan Page Limited. https://doi.org/10.1007/978-3-030- 02006-4_207-1 .

Bachmann, R., & Zaheer, A. (2006). Handbook Of trust research. In: Handbook Of Trust Research (Issue January 2006). https://doi.org/10.4337/9781847202819 .

Barney, J. B. (1991). Firm Resourecs and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

Becker, G. (1964). A Theoretical and Empirical Analysis, with Special Reference to Education. In: The University of Chicago Press. https://doi.org/10.1093/nq/s1- IV.92.83-a .

Campbell, B. A., Coff, R. W., & Kryscynski, D. (2012). Rethinking Sustained Competitive Advantage From Human Capital. The Academy of Management Review, 37(3), 376-395.

Cobben, D., & Roijakkers, N. (2019). The Dynamics of Trust and Control in Innovation Ecosystems. International Journal of Innovation, 7(1), 01-25. https://doi.org/ 10.5585/iji.v7i1.341 .

Cunha, F., & Heckman, J. J. (2008). Formulating, identifying and estimating the technology of cognitive and noncognitive skill formation. Journal of Human Resources, 43(4), 738-782. https://doi.org/10.3368/jhr.43.4.738 .

Davidkov, Ts., & Andonova, D. (2019). Tendentsii v razvitieto na funktsiyata upravlenie na choveshkite resursi (UCHR). V: Ustoychivo upravlenie na choveshkite resursi v savremennata ikonomicheska realnost. Ikonomicheski universitet – Varna, 15-24. [Давидков, Ц., & Андонова, Д. (2019). Тенденции в развитието на функцията управление на човешките ресурси (УЧР). В: Устойчиво управление на човешките ресурси в съвременната икономическа реалност. Икономически университет – Варна, 15-24] (in Bulgarian).

Drucker, P. (1985). Innovation and Entrepreneurship: Practice and Principles. Harper and Row Publishers.

Fernandez, S., & Moldogaziev, T. (2013). Using employee empowerment to encourage innovative behavior in the public sector. Journal of Public Administration Research and Theory, 23(1), 155-187. https://doi.org/10.1093/jopart/mus008 .

Fonseca, T., de Faria, P., & Lima, F. (2019). Human capital and innovation: the importance of the optimal organizational task structure. Research Policy, 48(3), 616-627. https://doi.org/10.1016/j.respol.2018.10.010 .

Furnham, A. (2008). Personality and Intelligence at Work: Exploring and Explaining Individual Differences at Work. Routlege.

Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19(2), 110-132. https://doi.org/10.1016/S0737-6782(01)00132-1 .

Gary S. Becker, N. T. (1994). Human Capital and the Rise and Fall of Families. The University of Chicago Press (Issue January).

Hackman, J. R. (1987). The design of work teams. In: Lorsch, J. (ed.). Handbook of organizational behavior. Prentice-Hall.

Heckman, J. J. (1996). What Should Be Our Human Capital Investment Policy? Of Heart and Mind: Social Policy Essays in Honor of Sar A. Levitan, 15, 323-342. https:// doi.org/10.17848/9780585280295.ch15 .

Heckman, J. J. (2000). Policies to foster human capital. Research in Economics, 54(1), 3- 56. https://doi.org/10.1006/reec.1999.0225 .

Hyuseinov, B. (2017). Razvitie na choveshkiya kapital – ikonomicheski efekti i pazarni aspekti. Narodnostopanski arhiv. [Хюсеинов, Б. (2017). Развитие на човешкия капитал – икономически ефекти и пазарни аспекти. Народностопански архив] (in Bulgarian)

Iliev, Y., & Masaldzhiyska, S. (2017). Razvitieto na choveshki kapital v biznes organizatsiite i savremennoto upravlenie na choveshkite resursi. Ikonomicheska misal, 4, 33-45. [Илиев, Й., & Масалджийска, С. (2017). Развитието на човешки капитал в бизнес организациите и съвременното управление на човешките ресурси. Икономическа мисъл, 4, 33-45] (in Bulgarian).

Jones, D. G. E. (2017). Knowledge sharing and technological innovation: The effectiveness of trust, training, and good communication. Cogent Business and Management, 4(1). https://doi.org/10.1080/23311975.2017.1387958 .

Klein Woolthuis, R., Lankhuizen, M., & Gilsing, V. (2005). A system failure framework for innovation policy design. Technovation, 25(6), 609-619. https://doi.org/ 10.1016/j.technovation.2003.11.002 .

Kozlowski, S. W. J., & Ilgen, D. R. (2006). Enhancing the Effectiveness of Work Groups and Teams. Psychological Science in the Public Interest, 7(3), 77-124. https://doi.org/ 10.1111/j.1529-1006.2006.00030.x .

Kwon, D.-B. (2009). The 3rd OECD World Forum on “Statistics, Knowledge and Policy” Charting Progress, Building Visions, Improving Life Measuring Population Happiness to Inform Public Policy. October, October, 1-11.

Lenihan, H., McGuirk, H., & Murphy, K. R. (2019). Driving innovation: Public policy and human capital. Research Policy, 48(9). https://doi.org/10.1016/j.respol.2019.04.015

Liu, G., Lin, C., & Xin, Z. (2014). The effects of within- and between-group competition on trust and trustworthiness among acquaintances. PLoS ONE, 9(7), 1-5. https://doi.org/10.1371/journal.pone.0103074 .

Makridis, C. A., Han, J. H., & Carey, W. P. (2021). Future of work and employee empowerment and satisfaction: Evidence from a decade of technological change. Technological Forecasting & Social Change, 173, 121162. https://doi.org/10.1016/ j.techfore.2021.121162 .

Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace. Harvard Business Review, Vol. 63, Issue 2. Sage.

Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman, H. J. (1978). Organizational strategy, structure, and process. Academy of Management Review. Academy of Management, 3(3), 546-562. https://doi.org/10.5465/AMR.1978.4305755 .

Mincer, J. (1958). Investment In Human Capital And Personal Income Distribution. American Journal of Sociology, 118(3), 676-727.

Nahapiet, J., & Ghoshal, S. (2009). Social capital, intellectual capital, and the organizational advantage. Knowledge and Social Capital, April 1998, 119-158. https://doi.org/10.2307/259373 .

Naydenova, A., & Milanova, P. (2013). Upravlenie na choveshkiya kapital vav firmena sreda. Sotsioantropologichna i motivatsionna determiniranost. Sofiya: AI “Prof. Marin Drinov”. [Найденова, А., & Миланова, П. (2013). Управление на човешкия капитал във фирмена среда. Социоантропологична и мотивационна детерминираност. София: АИ “Проф. Марин Дринов”] (in Bulgarian).

NCPP. (2009). The National Workplace Study – Employees. Irish Social Science Data. http://www.ucd.ie/issda/data/ .

OECD/Eurostat. (2018). Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation. In: The Measurement of Scientific; Technological and Innovation Activities. Paris/Eurostat, Luxembourg: OECD Publishing. https://doi.org/ https://doi.org/10.1787/9789264304604-en .

OECD. (2019). Productivity, human capital and educational policies. Human Capital. https://www.oecd.org/economy/human-capital/

Olaisen, J., & Revang, O. (2017). The dynamics of intellectual property rights for trust, knowledge sharing and innovation in project teams. International Journal of Information Management, 37(6), 583-589. https://doi.org/10.1016/j.ijinfomgt.2017.05.012 .

Oldham, G. R. (2003). Stimulating and supporting creativity in organizations. In: Managing knowledge for sustained competitive advantage, 43-273. Jossey-Bass.

Ovcharova, S. (2019). Upravlenieto na kreativnostta – faktor za ustoychivo konkurentno razvitie. V: Ustoychivo upravlenie na choveshkite resursi v savremennata ikonomicheska realnost. Ikonomicheski universitet – Varna, 176-187. [Овчарова, С. (2019). Управлението на креативността – фактор за устойчиво конкурентно развитие. В: Устойчиво управление на човешките ресурси в съвременната икономическа реалност. Икономически университет – Варна, 176-187] (in Bulgarian).

Ployhart, R., & Moliterno, T. (2011). Emergence of the human capital resource: A multilevel model. Academy of Management Review, 36(1), 127-150. https://doi.org/ 10.5465/amr.2009.0318 .

Randall, D. (1987). Commitment and the Organization: The Organization Man Revisited. Academy of Management Review, 12(3), 460-471.

Reichers, A. E. (1985). A Review and Reconceptualization of Organizational Commitment. Academy of Management Review, 10(3), 465-476. https://doi.org/ 10.2307/258128 .

Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3), 393-404. https://doi.org/10.5465/AMR.1998.926617 .

Scarbrough, H., & Elias, J. (2002). Evaluating Human Capital. CIPD Publishing.

Schultz, T. W. (1961). Investment in Human Capital. American Economic Association, 51(5), 1035-1039.

Seibert, S. E., Wang, G., & Courtright, S. H. (2011). Antecedents and Consequences of Psychological and Team Empowerment in Organizations: A Meta-Analytic Review. Journal of Applied Psychology, 96(5), 981-1003. https://doi.org/10.1037/a0022676 .

Shazi, R., Gillespie, N., & Steen, J. (2015). Trust as a predictor of innovation network ties in project teams. International Journal of Project Management, 33(1), 81-91. https://doi.org/10.1016/j.ijproman.2014.06.001 .

Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. Readings in Economic Sociology, July 2016, 6-17. https://doi.org/10.1002/97804 70755679.ch1 .

Subramaniam, M., & Youndt, M. A. (2005). The Influence of Intellectual Capital on the Types of Innovative Capabilities. The Academy of Management Journal, 48(3), 450-463. http://www.jstor.org/stable/20159670 .

Tidd, J., & Bessant, J. (2015). Innovation and entrepreneurship (Issue May). https://doi.org/10.5817/cz.muni.p280-0197-2022-20 .

United Nations. (1990). Human Development Index. United Nations Development Programme. http://hdr.undp.org/en/humandev .

World Bank. (2018). Human Capital Index. The World Bank Human Capital Project. https://www.worldbank.org/en/publication/human-capital#Index .

Xavier Molina-Morales, F., Martínez-Fernández, T. M., & Torlò, V. J. (2011). The Dark Side of Trust: The Benefits, Costs and Optimal Levels of Trust for Innovation Performance. Long Range Planning, 44(2), 118-133. https://doi.org/10.1016/j.lrp. 2011.01.001 .

Yasir, M., Imran, R., Irshad, M. K., Mohamad, N. A., & Khan, M. M. (2016). Leadership Styles in Relation to Employees’ Trust and Organizational Change Capacity: Evidence From Non-Profit Organizations. SAGE Open, 6(4). https://doi.org/10. 1177/2158244016675396 .

Zhang, X. M., & Bartol, K. M. (2010). Linking Empowering Leadership and Employee Creativity: The Influence of Psychological Empowerment, Intrinsic Motivation, and Creative Process Engagement. The Academy of Management Journal, 53(1), 107-128.

How to publish

Are you an author? Please read our publishing terms first.

Learn