Influence of Structured Human Capital and Psychological Health on Export Quality: An Empirical Analysis of Innovation Capacity Mediation across Chinese Regions

Abstract

Abstract Objective: This research undertakes a comprehensive ex-amination of the direct and indirect effects of the health human capital, inclusive of the dimension of psychological health, on the quality of exports at the firm level. The study underscores the potential of a well-structured human capital to alleviate psychological health issues, thereby augmenting productivity and enhancing the quality of exports. Methods: The empirical analysis is conducted using firm-year data extracted from three harmonised data-bases. The study employs a benchmark regression to validate the positive correlation between the healthy human capital structure, with a particular emphasis on psycho-logical health, and the quality of exports. The role of innovation capacity as a facilitator is further elucidated through a mediation analysis. To verify the validity of the regression results, we undertake robustness checks on the regression methods and regional disparities. Results: The results indicate that a healthy human capital structure, which reflects psychological health of human capital, significantly enhances innovation capacity of staff. Also, there is a positive relationship between in-novation capacity and export quality. Then, the mediating effect of innovation capacity accounts for 17% of the total impact of the healthy human capital structure on the quality of exports. The study also uncovers regional disparities in the influence of local human resources on a firm's healthy human capital structure, with a more pronounced mediation impact observed in enterprises located in the eastern region compared to those in the central and western regions. Conclusions: The findings of the study states that healthy human capital structure reflects psychological health of human capital, it affirms crucial role of healthy human capital structure in export products' quality and the significant role of innovation capacity in enhancing the quality of exports through the healthy human capital structure. The study also emphasises the necessity of considering regional disparities in the influence of local human resources on a firm's health human capital structure. These insights hold substantial value for firms aiming to augment their export quality through the im-provement of their human capital structure and innovation capacity. Our findings indicate the significance of a company's internal human resources, specifically its healthy human capital structure with dimension of psychological health and innovation potential, in enhancing export quality.