The mediating role of structural capital in the relationship between human capital and performance in the public administrations of Mexico and Peru

Abstract

Intellectual capital refers to the set of intangible assets that create competitiveness in public and private organizations and has a strategically significant role concerning resources, capacities and organizational performance. However, the academic output on intellectual capital in public administration is limited. The present study was conducted in public organizations in Tamaulipas, Mexico, and Arequipa, Peru; both countries are developing economies. The aim was to analyze the effects of human and structural capital on performance in public administration. A total of 502 questionnaires were administered to public employees in the two countries, using the neural networks technique and structural equation modeling. We found that human capital positively impacted organizational performance, and this relationship was mediated by structural capital. Thus, we recommend implementing structural and human capital management practices, given their role in enhancing the performance in public organizations.