The Electronic Journal of Knowledge Management publishes original articles on topics relevant to studying, implementing, measuring and managing knowledge management and intellectual capital.

For general enquiries email
Click here to see other Scholarly Electronic Journals published by API
For a range of research text books on this and complimentary topics visit the Academic Bookshop

Information about the European Conference on Knowledge Management (ECKM) is available here.

For info on the International Conference on Intellectual Capital, Knowledge Management and Organisational Learning (ICICKM), click here
Information about the European Conference on Intangibles and Intellectual Capital (ECIIC) is available here

Journal Article

Human Capital and Creation of Reputation and Financial Performance  pp209-218

Isabel Olmedo-Cifuentes, Inocencia Martínez-León

© Jan 2015 Volume 13 Issue 3, Guest Edited Issue, Editor: Dr. Juan-Gabriel Cegarra-Navarro and Dr. David Cegarra-Leiva, pp171 - 253

Look inside Download PDF (free)


Abstract: The aim of this paper is to show how managing human capital companies are able to enhance their corporate reputation and financial performance. In particular, this preliminary study analyses the impact of human capital on reputation perceived by employees and financial performance (by means of the return on capital employed ‑ROCE‑). Using a database of Spanish audit sector and applying an exploratory and confirmatory factor analyses, three factors of human capital are obtained (Staff Quality, Staff Management and Staff Results) which have been related to the dimensions of employees views of reputation and ROCE through a path analysis. The results reveal that staff quality (firms with creative employees, who perform their best and think act ions through, and where there is no trouble if individuals left) has a significant and positive influence on all the dimensions of reputation. Staff management (firms with clear recruitment and succession training programs, upgrade employees skills and employees who give their all) has a significant and positive impact on resource management, ethics and media reputation. Staff results (employees are satisfied and they do not have to bring down to others level) have a positive and significant effect on business leadership, resource management, ethics and media reputation. No significant effects are found in when human capital factors and financial performance are linked as a consequence of the financial crisis. We also obtained unexpected results in the impact of reputation perceived by employees on financial performance. In any case, a practical implication for these results is that service companies which manage adequately their human capital can increase the employee views of corporate reputation , having the factor Staff Quality a double significant and positive influence on reputation than other two factors.


Keywords: Keywords: human capital factors, corporate reputation, financial performance, Spanish audit firms.


Share |