Leveraging the Human Capital for Organization Sustainability in SMEs: A Knowledge Based Perspective

Abstract

The purpose of this paper is to contribute towards understanding of how small and medium enterprises (SMEs) can leverage their human capital to attain organization sustainability. The paper will focus on three dimensions, first is the role of human capital in attaining organization sustainability, second is to have a comprehensive understanding of sustainable organizations and its dimensions and third is to synthesize them by applying a knowledge based perspective. The paper draws from the literature review and logical analysis of the dimensions of human capital and sustainable organizations. The paper discusses the role of human capital in achieving organization sustainability in the light of a knowledge perspective by proposing a simple framework in the context of SMEs. The Study attempts to theoretically discuss the role of human capital in organization sustainability inside SMEs. As the study limits itself to SMEs its generalization demands empirical verification. The intentions are to offer insights for extending the theoretical framework in order to understand the phenomenon. Past studies have attempted to discuss on the sustainability construct for organizations as financial viability and by linking it to human capitalwhich emphasizes on innovations and firm financial performance. However, there is a scope for linking the human capital and knowledge dimension to attain organization sustainability inclusive of social and environmental dimensions and not limited within financial alone. The paper attempts to extend the scope of discussion relating human capital for sustainability from a knowledge bases perspective where knowledge can act as a catalyst for sustainability.