The Relationship between Human Capital and Jordanian Pharmaceutical Organizations' Business Performance

purpose of the study is to investigate the influence of HC on JPOs' BP. Practical data were collected from 132 out of 200 managers, by means of a questionnaire. Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions, stepwise regression, sequential regression, PLS were employed. To confirm the suitability of collected data, a Kolmogorov-Smirnov test, Cronbach’s Alpha and factor analysis were used. The results indicated: 1) A positive significant relationship between HC and JPOs’ BP, 2) Respondents believe that “learning & education” and “innovation & creation” variables positively and directly affect the JPOs' BP, while the “experience & expertise” variable does not. 3) HC can clearly explain productivity and profitability more than market valuation. The use of a single industry study design limits its generalisability to other industries. Testing other industries will help mitigate the issue of generalizing conclusions on other industries. The research results might help both academics and practitioners to understand the components of HC. Moreover, the data suggest that a similar set of HC indicators could be developed for other industries. The research may be considered as initiative study that: 1) Highlights the effect of HC on JPOs' BP; 2) Uses PLS method in the management field.