The Effects of Human Capital on Organizational Innovation in Abu Dhabi Government

Abstract

Today, human capital plays a significant role in developing the innovation process of organizations and for that reason it is an important element of any successful organization. The aim of this study is to examine the impact of three factors associated with human capital namely knowledge, skill, and attitudes towards organizational innovation. To achieve this aim, this study adopted a quantitative survey by collecting data from employees of public sector in Abu Dhabi. Descriptive and inferential statistics was used to analyse the quantitative data. The result of this study shows that human capital has a direct and positive influence towards organizational innovation through high degree of knowledge and skills as well as positive attitude. This study tested three factors mentioned above twords organziational innovation in UAE. Therefore, the author recommends the leaders in public organizations in UAE to focus on the factors associated with human capital in particular knowledge, skill, and attitude of employees. The outcome of this study revealed that the skills and knowledge of human capital are one of the pillars of this vision is transforming the UAE into competitive knowledge economy through innovation and creativity. Moreover, it is highly recommended to test the moderation effect of transformational leadership on this relationship in future studies to understand how the behavior of leaders support or weakening the impact of human capital on organizational innovation.