The Impact of Human Capital and Social Capital on Employee Performance: A Study of Employees in Small Scale Industry Enterprises in Western Province of Sri Lanka

Abstract

The human capital and Social Capital are most focus areas for the further research study. Previous literature was identified the importance of these human capital and social capital, even though there is less sufficient evidence regarding these areas. It is hard to find research which is done in Sri Lankan context that investigate on the relationship between human capital and social capital on employee performance in small scale industrial enterprises in Sri Lanka. Therefore the main objective of the study was to identify the whether there are significant effect from human capital and social capital to employee performance. The research framework contains of two Independent variable (Human Capital, Social Capital) dependent variable (employee performance).Therefore the purpose of the study was hypotheses testing. The study was cross sectional. It means collected only at a single point in time due to time horizon. Measures of this study retained adequate validity and reliability. Sample for this study was employees in small scale industrial enterprises in western province, Sri Lanka. The structured questionnaire, which consists of 65 statement with five point Likert scale used to gather data and sample consists of 316 employees in small scale enterprises in western province. Therefore unit of analysis was individual level. The data analysis contained within univariate and multivariate analysis. The research discovered that there were positive strong impact of human capital on employee performance. And also there were positive moderate impact of social capital on employee performance in small scale industrial enterprises in Sri Lanka.