Skip to main content

Human Capital, Innovation and International Competitiveness in Sub-Saharan Africa

  • Chapter
  • First Online:
Africa’s Competitiveness in the Global Economy

Part of the book series: AIB Sub-Saharan Africa (SSA) Series ((AIBSSA))

Abstract

Scores of studies highlight the significance of human resource development in Africa. However, this study is one of the first that combines human capital development and innovation and its impact on international competitiveness in sub-Saharan Africa (SSA). Thus, many questions about economic and business competitiveness in SSA have remained unanswered. This chapter, therefore, provides insights into how multinational corporations operating in SSA can acquire and develop their human capital to innovate and enhance their international competitiveness and that of the region. The study reveals that Africa’s long-term growth prospect hinges on developing their human capital. The sustainability of SSA’s competitiveness in the world requires that education and on-the-job training centre on the skills most needed in today’s global marketplace. Research and practical implications are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

References

  • Acemoglu, D., & Pischke, J. S. (1998). Why Do Firms Train? Theory and Evidence. The Quarterly Journal of Economics, 113, 79–119.

    Article  Google Scholar 

  • African Economic Outlook. (2008). Report Published by the Organisation for Economic Cooperation. OECD.

    Google Scholar 

  • Afuah, A. (1998). Innovation Management: Strategies, Implementation, and Profits. New York: Oxford University Press.

    Google Scholar 

  • Almeida, P., & Phene, A. (2004). Subsidiaries and Knowledge Creation: The Influence of the MNC and Host Country on Innovation. Strategic Management Journal, 25, 847864.

    Google Scholar 

  • Arenyeka, L. (2012). Slow to Boot: Nigerian Students Lag Behind in Computer Education. Vanguard Newspapers.

    Google Scholar 

  • Aryee, S., Walumbua, F. O., Seidu, E. Y. M., & Otaiye, L. E. (2016). Developing and Leveraging Human Capital Resource to Promote Service Quality: Testing a Theory of Performance. Journal of Management, 42, 488–499.

    Article  Google Scholar 

  • Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99–120.

    Article  Google Scholar 

  • Baron, A., & Armstrong, M. (2007). Human Capital Management: Achieving Added Value Through People. London; Philadelphia: Kogan Page.

    Google Scholar 

  • Bartlett, A., & Ghoshal, S. (1989). Managing Across Borders. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Becker, G. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70, 9–49.

    Article  Google Scholar 

  • Becker, G. (1964). Human Capital. Chicago: The University of Chicago Press.

    Google Scholar 

  • Becker, G. (1975). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. New York; London: Columbia University Press.

    Google Scholar 

  • Becker, G. (2009). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education (3rd ed.). London: University of Chicago Press.

    Google Scholar 

  • Beechler, S., & Woodward, I. C. (2009). The Global “War for Talent”. Journal of International Management, 15, 273–285.

    Article  Google Scholar 

  • Bienkowski, W. (2006, April). How Much are Studies of Competitiveness Worth? Some Critical Theoretical Reflections on the Issue. The Second Economic Forum On “New Europe”. Lancut.

    Google Scholar 

  • Bouchard, P. (2006). Training and Work: Myths About Human Capital. In S. Scott, B. Spencer, & A. Thomas (Eds.), Learning for Life: Canadian Readings in Adult Education. Toronto: Thompson Educational Publishing, Inc.

    Google Scholar 

  • Brymer, R. A., Molloy, J. C., & Gilbert, B. A. (2014). Human Capital Pipelines: Competitive Implications of Repeated Inter-Organizational Hiring. Journal of Management, 40, 483–508.

    Article  Google Scholar 

  • Budhwar, P., & Debrah, Y. (2004). Introduction. In P. Budhwar & Y. Debrah (Eds.), Human Resource Management in Developing Countries (pp. 1–15). London: Routledge.

    Google Scholar 

  • Cappelli, P. (2011). Why Companies Aren’t Getting the Employees They Need. Wall Street Journal.

    Google Scholar 

  • Carayannis, E., & Grigoroudis, E. (2014). Linking Innovation, Productivity and Competitiveness: Implication for Policy and Practice. Journal of Technology Transfer, 39, 199–218.

    Article  Google Scholar 

  • Coff, R., & Kryscnski, D. (2011). Drilling for Micro-Foundation of Human Capital-Based Competitive Advantages. Journal of Management, 37, 1429–1443.

    Article  Google Scholar 

  • Connor, H., & Shaw, S. (2008). Graduate Training and Development: Current Trends and Issues. Education + Training, 50, 357–365.

    Article  Google Scholar 

  • Correa, J. E., Camacho, M. J., & Morquela, R. E. (2015). Application of a Model of Human Capital to Promote the Competitiveness of Small and Medium Enterprises. Review of Business & Finance Studies, 6, 31–44.

    Google Scholar 

  • Crocker, A., & Eckardt, R. (2014). A Multilevel Investigation of Individual and Unit-Level Human Capital Complementarities. Journal of Management, 40, 509–530.

    Article  Google Scholar 

  • Czajkowski, Z., Kowalski, A. M., Michorowska, B., & Weresa, M. A. (2013). Human Capital and Innovation: Basic Concepts, Measures and Interdependencies. In M. A. Weresa (Ed.), Innovation, Human Capital and Trade Competitiveness: How are They Connected and Why Do They Matter? London: Springer Science & Business Media.

    Google Scholar 

  • Damanpour, F. (1987). The Adoption of Technological, Administrative, and Ancillary Innovations: Impact of Organizational Factors. Journal of Management, 13, 675–688.

    Article  Google Scholar 

  • Davenport, T. O. (1999). Human Capital: What It Is and Why People Invest In It. San Francisco: Jossey-Bass Publishers.

    Google Scholar 

  • Debrah, Y., & Smith, G. I. (2002). Globalisation, Employment and Workplace, Diverse Impact. London: Routledge.

    Google Scholar 

  • Donate, J. D., Peña, I., & Sánchez de Pablo, J. D. (2016). HRM Practices for Human and Social Capital Development: Effects on Innovation Capabilities. The International Journal of Human Resource Management, 27, 928–953.

    Article  Google Scholar 

  • Dore, R. (1976). Human Capital Theory, the Diversity of Societies and the Problem of Quality in Education. Higher Education, 5, 79–102.

    Article  Google Scholar 

  • Doz, Y. L., & Prahalad, C. K. (1987). The Multinational Mission. New York: The Free Press.

    Google Scholar 

  • Duit, R. (1991). On the Role of Analogies and Metaphors in Learning Science. Science Education, 75, 649–673.

    Article  Google Scholar 

  • Economist Intelligent Unit. (2008). People for Growth: The Talent Challenge in Emerging Markets (pp. 1–22). London: Economist.

    Google Scholar 

  • Elegbe, J. (2010). Talent Management in Developing Countries: Adopting a Global Perspective. Surrey: Gower Publishing Company.

    Google Scholar 

  • Farndale, E., Scullion, H., & Sparrow, P. (2010). The Role of the Corporate HR Function in Global Talent Management. Journal of World Business, 45, 161–168.

    Article  Google Scholar 

  • Farrell, D., & Grant, A. (2005). China’s Looming Talent Shortage. The McKinsey Quarterly, 4, 71–79.

    Google Scholar 

  • F-Jardon, C. M., & Gonzelez-Loureiro, M. (2013). Human Capital as a Source of Sustainable Competitive Advantage in SMEs: A Core Competencies Approach. Economia. Serial Management, 16, 255–276.

    Google Scholar 

  • Fredriksen, B., & Kagia, R. (2013). Attaining the 2050 Vision for Africa: Breaking the Human Capital Barrier. Global Journal of Emerging Market Economies, 5, 269–328.

    Article  Google Scholar 

  • Freer, J. (2017). Sustainable Development Goals and the Human Resource Crises. International Health, 9, 1–2.

    Article  Google Scholar 

  • Fukunishi, T. (2004). International Competitiveness of Manufacturing Firms in Sub-Saharan Africa: Why Has the Manufacturing Sector Remained Small? Discussion Paper No. 2, Institute of Developing Economies, pp. 1–27.

    Google Scholar 

  • Gibson, D. V., & Naquin, H. (2011). Investing in Innovation to Enable Global Competitiveness: The Case of Portugal. Technological Forecasting and Social Change, 78, 1299–1309.

    Article  Google Scholar 

  • Giegiel, A., & Wildowicz, A. (2014). Human Capital and International Competitiveness of OECD Countries. Retrieved May 31, 2016, from http://www.mikroekonomia.net/system/publication_files/282/original/4.pdf?1314950374

  • Grove, A. (2010, July 1). How to Make an American Job Before It’s Too Late. Bloomberg Business.

    Google Scholar 

  • Hamel, G. and Prahalad, C.K. (1990). The Core Competence of the Corporation. Harvard Business Review, 68, 79–91.

    Google Scholar 

  • Hayman, K., & Lorman, A. (2004). Graduate Training Schemes Have Demonstrably Accelerated Promotion Patterns. Career Development International, 9, 123–141.

    Article  Google Scholar 

  • Hegarty, C., & Johnston, J. (2008). Graduate Training: Evidence for FUSION Projects in Ireland. Education + Training, 50, 391–405.

    Article  Google Scholar 

  • Holden, L. (2004). Human Resource Development: The Organisation and the National Framework. In I. Beardwell, L. Holden, & T. Claydon (Eds.), Human Resource Management: A Contemporary Approach (4th ed.). London; New York: Prentice Hall.

    Google Scholar 

  • Horwitz, F. (2014). Human Resources Management in Multinational Companies in Africa: A Systematic Literature Review. The International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2014.934899.

  • Huselid, M., Jackson, S., & Schuler, R. S. (1997). Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance. Academy of Management Journal, 40, 171–188.

    Article  Google Scholar 

  • Ibarra, H. (1993). Network Centrality, Power, and Innovation Involvement: Determinants of Technical and Administrative Roles. Academy of Management Journal, 36, 471–501.

    Article  Google Scholar 

  • Ibeh, K., & Debrah, Y. (2011). Female Talent Development and Africa Business Schools. Journal of World Business, 46, 42–49.

    Article  Google Scholar 

  • IMF. (2001). Global Trade Liberalization and the Developing Countries. Retrieved May 30, 2016, from https://www.imf.org/external/np/exr/ib/2001/110801.htm#ii

  • IMF. (2016). Regional Economic Outlook: Sub-Saharan Africa: Time for a Policy Reset. Retrieved May 26, 2017, from https://www.imf.org/external/pubs/ft/reo/2016/afr/eng/pdf/sreo0416.pdf

  • Jaskyte, K. (2011). Predictors of Administrative and Technological Innovations in Nonprofit Organizations. Public Administration Review, 71, 77–86.

    Google Scholar 

  • Jenner, S. (2008). Graduate Development, Discursive Resources and the Employment Relationship at BAC Systems. Education + Training, 50, 423–438.

    Article  Google Scholar 

  • Jin, Y., Hopkins, M. M., & Wittmer, J. L. S. (2010). Linking Human Capital to Competitive Advantages: Flexibility in a Manufacturing Firm’s Supply Chain. Human Resource Management, 49(5), 939–963.

    Article  Google Scholar 

  • Judge, T. A., Klinger, R. L., & Simon, L. S. (2010). Time is on My Side: Time, General Mental Ability, Human Capital, and Extrinsic Career Success. Journal of Applied Psychology, 95, 92–107.

    Article  Google Scholar 

  • Kumar, R., & Chadee, D. (2002). International Competitiveness of Asian Firms: An Analytical Framework. ERD Working Paper Series No. 4.

    Google Scholar 

  • McCracken, M., Currie, D., & Harrison, J. (2015). Understanding Graduate Recruitment, Development and Retention for the Enhancement of Talent Management: Shaping ‘The Edge’ of Graduate Talent. The International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2015.1102159.

  • McGerttingan, E., & O’Neil, D. (2009). From Apprentice to Construction Managers and Beyond: Developing a Pipeline of Talent. Education + Training, 51, 220–231.

    Article  Google Scholar 

  • Mitter, R. (2016). The Sustainable Development Goals: Promoting Education for Utility or Transformation. International Development, Community and Environment (IDCE) Paper 15.

    Google Scholar 

  • Miyamoto, K. (2013). Human Capital Formation and Foreign Direct Investment in Developing Countries. OECD, Working Paper No. 211.

    Google Scholar 

  • Mortara, C., Shawcross, J., Mills, J. F., Napp J. J., & Marshall, T. H. (2009). Skills for Open Innovation. In R&D Management Conference 2009: The Reality of R&D and its Impact on Innovation, 2009-6-21 to 2009-6-24. Vienna, Austria.

    Google Scholar 

  • Muhlberger, M. (2012). Sub-Saharan Africa: The Continent of the 21st Century? Frankfurt: Deutsche Bank Research.

    Google Scholar 

  • Noe, R. A. (2010), Employee Training and Development. New York: Mc-Grew Hill.

    Google Scholar 

  • Nyberg, A., Moliterno, T., Hale, D., & Lepak, D. (2014). Resource-Based Perspective on Unit-Level Human Capital: A Review and Integration. Journal of Management, xx, 1–30.

    Google Scholar 

  • O’Donnell, H., Karallis, T., Sanderlands, E., Casin, J., & O’Neil, D. (2008). Case Study: Developing Graduate Engineers at Kentz Engineers and Constructors. Education + Training, 50, 439–452.

    Article  Google Scholar 

  • Obisi, C. (2011). Employee Training and Development in Nigerian Organisations: Some Observations and Agenda for Research. Australian Journal of Business and Management Research, 1, 82–91.

    Google Scholar 

  • Oppong, N. and Gold, J. (2013). Talent Management in Ghanaian Gold Mining Industry: a critical exploration. Universal Journal of Management and Social Science, 23, 38–52.

    Google Scholar 

  • Osabutey, E., Nyuur, R. B., & Debrah, Y. A. (2015). Developing Strategic International Human Resource Capabilities in Sub-Saharan Africa. In C. F. Machado (Ed.), International Human Resource Management (pp. 37–51). London: Springer.

    Google Scholar 

  • Osman-Gani, A. M. (2000). Developing Expatriates for the Asia-Pacific Region: A Comparative Analysis of Multinational Enterprise Managers from Five Countries Across Three Continents. Human Resource Development Quarterly, 11, 213–236.

    Google Scholar 

  • Paglis, L. (2013). A Review of Managerial Skills Training in the Classroom. Journal of Management Education, 37(4), 472–498.

    Google Scholar 

  • Playfoot, J., Andrews, P., & Augustus, S. (2015). Education and Training for the Oil and Gas Industry: The Evolution of Four Energy Nations: Mexico, Nigeria, Brazil and Iraq. London: Elsevier.

    Google Scholar 

  • Ployhart, R., & Moliterno, T. (2011). Emergence of the Human Capital Resources: A Multilevel Model. Academy of Management Review, 36, 127–150.

    Article  Google Scholar 

  • Ployhart, R., Nyberg, A., & Maltarich, M. (2014). Human Capital is Dead: Long Live Human Capital. Journal of Management, 40, 371–398.

    Article  Google Scholar 

  • Podmetina, D., Hafkesbrink, J., Templov, R., Dabrowska, J. and Petraite, M. (2015, June 14–17). What Skills and Competencies are Important are Required to Implement Open Innovation? Paper Presented at the xxvi ISPIM Conference-Shaping the Frontiers of Innovation Management, Budapest, Hungary.

    Google Scholar 

  • Poole, M., & Jerkins, G. (1996). Competitiveness and Human Resource Management. Journal of General Management, 22, 1–19.

    Article  Google Scholar 

  • Porter, M. E. (1990). The Competitive Advantage of Nations. London: Macmillan.

    Book  Google Scholar 

  • Prayag, G., & Hoseny, S. (2013). Human Resource Development in the Hotel Industry in Mauritius: Myth or Reality? Current Issues in Tourism, 18, 249–266.

    Article  Google Scholar 

  • Pulakos, E., Arad, S., Donovan, M., & Plamondon, K. (2000). Adaptability in the Workplace: Development of a Taxonomy of Adaptive Performance. Journal of Applied Psychology, 85, 612–624.

    Article  Google Scholar 

  • Rich, M. (2010, July 1). Factory Jobs Return, but Employers Find Skills Shortage. The New York.

    Google Scholar 

  • Rovai, S. (2005). HRM Practices in Foreign MNCs Operating in the PRC: A New Hybrid Form? International Journal of Human Resources Management, 5, 284–301.

    Google Scholar 

  • Samuel, O. (2015). A Study of Issues and Challenges of Staff Training and Development in MNCs. International Journal of Innovation Research & Development, 4, 39–47.

    Google Scholar 

  • Santos-Rodrigues, H., Figueroa Dorrego, P., & Fernández-Jardón, C. M. (2010a). The Influence of Human Capital on the Innovativeness of Firms. International Business & Economics Research Journal (IBER), 9(9), 53–63.

    Article  Google Scholar 

  • Santos-Rodrigues, H., Figueroa Dorrego, P. & Fernández-Jardón, C. (2010b). Human Capital Dimensions That Influence Firm Innovation. Conference Paper Presented in 2010, pp. 1–8.

    Google Scholar 

  • Santos-Vijande, M. L., Lopez-Sanchez, J. A., & Gonzalez-Mieres, C. (2012). Organization Learning, Innovation and Performance in KIBS. Journal of Management and Innovation, 18, 870–904.

    Google Scholar 

  • Saunders, M., Lewis, P. & Thornhill, A. (2009). Research Methods for Business Students (5th ed.) London; New York: Pearson Education Limited.

    Google Scholar 

  • Scarbrough, H., & Elias, J. (2002). Evaluating Human Capital. London: CIPD.

    Google Scholar 

  • Schuler, R. S., Jackson, S. E., & Tarique, I. (2011). Global Talent Management and Global Talent Challenges: Strategic Opportunities for IHRM. Journal of World Business, 46, 506–516.

    Article  Google Scholar 

  • Schultz, T. (1961). Investment in Human Capital. The American Economic Review, 51, 1–17.

    Google Scholar 

  • Schultz, T. (1971). Investment in Human Capital. New York: The Free Press and Collier-Macmillan Limited.

    Google Scholar 

  • Schulz, B. (2008). The Importance of Soft Skills: Education Beyond Academic Knowledge. Journal of Language and Communication, 2(1), 146–154.

    Google Scholar 

  • Scullion, H., & Collings, D. (2006). Global Talent Management. In H. Scullion & D. Collings (Eds.), Global Staffing. London: Routledge.

    Google Scholar 

  • Smith, S. (1995). World Class Competitiveness. Managing Service Quality, 5(5), 36–42.

    Article  Google Scholar 

  • Somaya, D., Williamson, I., & Lorinkova, N. (2008). Gone But Not Lost: The Different Performance Impacts of Employee Mobility Between Co-Operators and Competitors. Academy of Management Journal, 51, 936–953.

    Article  Google Scholar 

  • Sweetland, S. (1996). Human Capital Theory: Foundations of a Field of Inquiry. Review of Educational Research, 66, 341–359.

    Article  Google Scholar 

  • Szivas, E. (1999). The Influence of Human Resources on Tourism Marketing. In F. Vellas & L. Becherel (Eds.), The International Marketing of Travel and Tourism: A Strategic Approach. London: Macmillan.

    Google Scholar 

  • The Economist. (2016). Business in Africa: Special Report (pp. 1–15). London: Economist.

    Google Scholar 

  • Thunnissen, M. (2016). Talent Management. Employee Relations, 38, 57–72.

    Article  Google Scholar 

  • Tung, R. L. (2016). New Perspectives on Human Resource Management in Global Context. Journal of World Business, 51, 142–152.

    Article  Google Scholar 

  • Ugoji, C., & Mordi, C. (2014). Training Evaluation: A Case of Employee Training and Development Within the Service Industries in Nigeria. Journal of Research in International Business and Management, 4, 13–20.

    Google Scholar 

  • United Nations. (2015). Economic Development in Africa: Unlocking the Potentials of Africa’s Services Trade for Growth and Development. New York: United Nations.

    Google Scholar 

  • World Economic Forum. (2017). Global Competitiveness Report. Cologny: World Economic Forum.

    Google Scholar 

  • Wright, P., Coff, R., & Moliterno, T. (2014). Strategic Human Capital: Crossing the Great Divide. Journal of Management, 40, 353–370.

    Article  Google Scholar 

  • World Development Report. (2000). Entering the 21st Century. New York: Oxford University Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Debrah, Y.A., Oseghale, R.O., Adams, K. (2018). Human Capital, Innovation and International Competitiveness in Sub-Saharan Africa. In: Adeleye, I., Esposito, M. (eds) Africa’s Competitiveness in the Global Economy. AIB Sub-Saharan Africa (SSA) Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-67014-0_9

Download citation

Publish with us

Policies and ethics