Does Human Capital Predict Resources: Evidence from Denominational Institutions in Ghana?

Table 1: Reliability Test

III. RESULTS AND DISCUSSIONS

Relationship

By using the Pearson product-moment correlation coefficient, the analysis investigated the relationship between human capital and resources. To ensure that no breach of the assumptions of linearity, normality, and homoscedasticity was committed, initial analyses were conducted. Based on Cohen (1988) absolute correlation values, where r=.10 to .29 is small or low, r=.30 to .49 is medium or moderate, and r=.50 to 1.0 is high or large, the strength of the relationship is calculated and interpreted. As shown in Error! Reference source not found., the relationship between human capital and resources revealed a high positive relationship between human capital and resources andwas statisticallysignificant (r = .503, p = 0.000). Therefore, the study rejectsthe null hypothesis that there is no significant relationship between human capital and resources. In a detail, scrutiny of the sub-variables for human capital and resources the results showed as follows: education relationship to resources was moderate positive statistically significant (r = 0.491, p = .000); training and resources was moderate positive statistically significant (r =-.405, p = .000); succession planning low positive statistically significant (r = .220, p = .000).

The analysis results show that human capital has a positive impact on the resources of the organisation; however, its occurrence is specific. The results imply that there is a positive relationship between human capital and resources in the denominational institution. This relationship has mainly resulted from the specific reasons of education, training and succession planning placement. They all showed a positive relationship as human capital becomes high, the better the resources been efficiently usage, accessibility and adequacy.

Table 2: Correlations Analysis

The outcome of this study is confirmed by Fu et al. (2020) investigated the impact of human capital on organisational innovation activities in the Chinese manufacturing industry. Furthermore, organisational innovation activities are classified into two categories: product innovation and process innovation. Using data from a World Bank survey of Chinese private manufacturing enterprises, the authors discover that executives' experience significantly affects process innovation. Growing the human capital base of an organisation is essential as it gives a resource pool in terms of skills and works potential for the organisation to rely on (Ejemeyovwi et al., 2018). Human capital is considered the bedrock for organisational development due to its numerous effects on labour, capital, and other resources in organisations. Human capital possesses economic benefits since a knowledgeable workforce can increase productivity (LeCounte et al., 2017)

Regression Analysis

The linear regression analysis approach was used to assess the ability of human capital as an independent variable to predict resources. As shown in Table 3, after going through the process, the total variance explained by the model as a whole is 31.26%, F = 55.17, p < .000. However, there are 68.74% variables, which were not considered in this study but can explain resources in Ghana's denominational institutions. The proposed applied model based on the unstandardized beta for this study is Resources = 0.927 + 0.3814education + 0.1912training + 0.0762succession planning + ɛ. As a result, the study rejectsthe null hypothesis that none of the human capital predictors of resources. The result implies that resources can be accounted for improvement based on positive human capital and high human capital, the better usage of resources of the denominational institution.