Impact of Intellectual Human Capital and Knowledge Acquisition Capabilities on Financial Performances of Indigenous Craft Industries in Sri Lanka
Sujeewa Kodithuwakku ,
University of Peradeniya, Peradeniya, 20400, LK
Department of Business Finance
H. M. S. Priyanath
Sabaragamuwa University of Sri Lanka, Belihuloya, 40140, LK
About H. M. S.
Department of Economics and Statistics
The study seeks to investigate the impact of intellectual human capital and knowledge acquisition capabilities on the firm’s financial performance, particularly in indigenous craft industries in Sri Lanka. The quantitative data were collected from 355 owners of indigenous craft industries located in traditional handicrafts villages in Sri Lanka and analyzed with the help of a Partial Least Squire Structural Equation Model (PLS-SEM). The empirical results show that intellectual human capital has a significant positive impact on the financial performance of indigenous craft industries. Further, it was found that knowledge acquisition capabilities have a significant positive impact on the firm’s financial performance. In addition, the study identified that knowledge acquisition capabilities have a significant positive mediating effect on the relationship between intellectual human capital and the firm’s financial performance. Thus, the study found that the intellectual human capital of owners is the most powerful intangible resource, which has a significant positive impact on a firm’s financial performance. The study suggests to owners of the indigenous craft industries, policymakers, donors, and others to incorporate the strategies to develop and strengthen the efficiency and productivity of intellectual human capital to improve their financial performance.
How to Cite:
Kodithuwakku, S., & Priyanath, H. M. S. (2022). Impact of Intellectual Human Capital and Knowledge Acquisition Capabilities on Financial Performances of Indigenous Craft Industries in Sri Lanka. Sri Lanka Journal of Social Sciences and Humanities, 2(2), 93–104. DOI: http://doi.org/10.4038/sljssh.v2i2.76
23 Aug 2022.