Examining the Roles of Human Capital Theory. What next for Construction Industry?

Abstract

The concept of human capital is very common in present-day construction industry with reference to its philosophy and techniques. Human capital (HC) is widely discussed in different fields; hence, its meanings differ from one field to another. This study provides a detailed discussion on the development of the human capital theory under various themes and sub-themes. The study further seeks to discuss the several effects of human capital development on industry success and competitiveness and how this contributes to economic growth in developing countries. Relevant literatures on HC theory and development were extracted from Scopus. Scopus is widely acknowledged as one of the widest interdisciplinary databases for engineering, technology, science and medicine. The Scopus database features over 20, 000+ peer-reviewed journals from over 5000 publishers. The Scopus database allows its users to perform more detailed searching opportunities compared to other databases such as Academic Search Complete, Art and Architecture Complete, Ebsco Host, SpringerLink and Web of science. The distillation of literature through thematic analysis revealed the various roles of human capital and its correlation with construction industry success and growth. Findings from this study revealed that the success of the construction industry is firmly related to the effectiveness of its human capital. The study revealed that the human capital theory is not without its criticisms and barriers. Practically, this study explores the various benefits of human capital to employers of the construction industry. The study suggests that human capital development plays a key part in retaining quality employees and recruiting prospects. Furthermore, investment in human capital goes a long way in improving employee satisfaction, organisational culture and increased productivity. This study contributes to the human capital discourse, which is the measure of economic value provided by employees with reference to their abilities, skills, values and knowledge.