Published date: Mar 06 2023

Journal Title: KnE Social Sciences

Issue title: IAPA 2022 International Conference and International Indonesia Conference on Interdisciplinary Studies (IICIS)

Pages: 430–446

DOI: 10.18502/kss.v8i5.13015

Lady Grace Jane Girothladygiroth@utsu.ac.idPublic Administration Science, Faculty of Social and Political Sciences, Universitas Teknologi Sulawesi Utara

Piet Hein PusungPopulation Studies and Civil Registration, Community Protection Faculty, Institut Pemerintahan Dalam Negeri

Noudy Reinold Piere TendeanPopulation Studies and Civil Registration, Community Protection Faculty, Institut Pemerintahan Dalam Negeri

Tieneke Evie Megie SumualPost-graduate Program Universitas Negeri Manado

This research is to describe human capital investment and local development in the digitalization era. This topic is highly relevant and widely discussed in the scientific literature. The research method used is a literature study by carrying out several main approaches to the definition of human capital investment, local development, and sustainable development in the midst of the digital transformation that is sweeping the world today. The purpose of this research is to get a critical reflection on human capital investment and regional development in the digitalization era in the context of diverse approaches and opinions. The method used in this study is to use systematic literature reviews. The results of research based on literature studies show that in facing the digitalization era, human capital is needed for investment and regional development. The development of the digitalization era requires the role of human capital that is oriented to the use of resources in local government by containing aspects of the use of technology as one of the developments of competencies. This orientation can of course be carried out through continuous and systemic education and training in maintaining the quality of the results of human capital development in the regions, including pentahelix in the regions.

Keywords: human capital investment, regional development, digitalization

[1] Zaborovskaia O, Nadezhina O, Avduevskaya E. The impact of digitalization on the formation of human capital at the regional level. J Open Innov: Technol Mark Complex. 2020 Dec 6;6(4):184.

[2] Pivac S, Barac ZA, Tadic I. An analysis of human capital investments, profitability ratios and company features in the EUures in EU. Croatian Operational Research Review. 2017 Mar 31:167-80.

[3] Grigorescu A, Pelinescu E, Ion AE, Dutcas MF. Human capital in digital economy: An empirical analysis of Central and Eastern European Countries from the European Union. Sustainability. 2021 Feb 13;13(4):2020.

[4] Windhani K, Mulyaningsih T, Hardoyono F. Distribution of Human Capital Between Regions in Indonesia Using the Alternative Human Development Index. KnE Social Sciences. 2022 Mar 15:256-276.

[5] Suprayitno B, Nurseto T, Supriyanto S. Is The Human Capital Investment of Provincial Governments Productive in Decentralization Era? Jurnal Economia. 2017 Apr 1;13(1):39-55.

[6] Hendarmin, H. Retracing the role of investment in human capital and physical capital in increasing productivity growth. J Bus Econ Entrep. 2019;8(3):216.

[7] ANOCHIWA L. A contribution to the human capital investment debate vis-a-vis economic growth: The case for Nigeria. Ann Hum Resour Manag Res. 2021 Jan 11;1(1):15-28.

[8] Kisman ZA, Tasar I. The key elements of local development. Procedia Economics and Finance. 2014 Jan 1;15:1689-1696.

[9] Syarifudin D, Solihin A. The role of local governments in improving the quality of human development. Media Trend. 2022 Mar 27;17(1):283-295.

[10] De Cuyper N, De Witte H. The management paradox: Self-rated employability and organizational commitment and performance. Personnel Review. 2011 Feb 8.

[11] De Cuyper N, Van der Heijden BI, De Witte H. Associations between perceived employability, employee well-being, and its contribution to organizational success: A matter of psychological contracts? Int J Hum Resour Manag. 2011 Apr 1;22(07):1486- 1503.

[12] Nelissen J, Forrier A, Verbruggen M. Employee development and voluntary turnover: Testing the employability paradox. Hum Resour Manag J. 2017 Jan;27(1):152-168.

[13] Heijde CM, Van Der Heijden BI. A competence-based and multidimensional operationalization and measurement of employability. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management. 2006 Sep;45(3):449-476.

[14] Vanhercke D, De Cuyper N, Peeters E, De Witte H. Defining perceived employability: a psychological approach. Personnel Review. 2014 May 27.

[15] Benson GS, Finegold D, Mohrman SA. You paid for the skills, now keep them: Tuition reimbursement and voluntary turnover. Acad Manag J. 2004 Jun 1;47(3):315-331.

[16] Rodrigues R, Butler CL, Guest D. Evaluating the employability paradox: When does organizational investment in human capital pay off? Int J Hum Res Manag. 2020 May 14;31(9):1134-1156.

[17] Burton-JonesandJ A, Spender C. Oxford Handbook of Human Capital. 2011

[18] Hall JC, Lawson RA. Economic freedom of the world: An accounting of the literature. Contemp Econ Pol. 2014 Jan;32(1):1-9.

[19] Feldmann H. Economic freedom and human capital investment. J Inst Econ. 2017 Jun;13(2):421-445.

[20] Shah, AF. The role of human capital in governance in the era of society 5.0: A Theoretical and Empirical Review. 2021.

[21] Krasova EV. Human capital in sustainable development of the information economy: euphoria and reality. In Proceedings of the International Scientific and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021). Edited by D. Narazov & A. Narazov. Yekaterinburg 2021 (pp. 533-539).

[22] Drabek J, Lorincova S, Javorcikova J. Investing in human capital as a key factor for the development of enterprises. Issues of Human Resource Management. 2017 Jun 7;1(1):54-78.

[23] Kelchevskaya NR, Shirinkina EV, Strih NI. Evaluation of Digital Development of Human Capital of Enterprises. In 2nd International Conference on Education Science and Social Development (ESSD 2019) 2019 Jul (pp. 446-449). Atlantis Press.

[24] Campbell D. Campbell leadership descriptor facilitator’s guide. Center for Creative Leadership; 2019 Feb 6.

[25] Brynjolfsson E, McAfee A. The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & Company; 2014 Jan 20.

[26] Pitaikina IA, Vlazneva SA. New quality of human capital formation under digital economy conditions. Inf J Econ Law. 2018(2018):122.

[27] Clark G, Huxley J, Mountford D. Local economies and employment development (Leed) organising local economic development: The role of development agencies and companies. 2010.

[28] Kisman ZA, Tasar I. The key elements of local development. Procedia Economics and Finance. 2014 Jan 1;15:1689-1696.

[29] Barney J. Firm resources and sustained competitive advantage. J Manag. 1991 Mar;17(1):99-120.

[30] Williamson OE. Markets and hierarchies: Analysis and antitrust implications: a study in the economics of internal organization. University of Illinois at Urbana-Champaign’s Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. 1975.

[31] Caire G. Becker (Gary S.)-Human capital, A theoretical and empirical analysis with special reference to education. Revue économique. 1967;18(1):132-133.

[32] Tomer JF. Organizational capital: The path to higher productivity and well-being. Praeger Pub Text; 1987.

[33] Hitt MA, Bierman L, Shimizu K, Kochhar R. Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective. Acad Manag J. 2001 Feb 1;44(1):13-28.

[34] Martin-de-Castro G, Lopez-Saez P, Navas-Lopez JE. Processes of knowledge creation in knowledge-intensive firms: Empirical evidence from Boston’s Route 128 and Spain. Technovation. 2008 Apr 1;28(4):222-230.

[35] Pivac S, Barać ZA, Tadic I. An analysis of human capital investments, profitability ratios and company features in the EUures in EU. Croatian Operational Research Review. 2017 Mar 31:167-180.

[36] Kucharcíkova A, Miciak M. The application of human capital efficiency management towards the increase of performance and competitiveness in an enterprise operating in the field of distribution logistics. NASE MORE: znanstveni casopis za more i pomorstvo. 2018 Oct 26;65(4 Special issue):276-283.

[37] Caucutt EM, Lochner L. Early and late human capital investments, borrowing constraints, and the family. Journal of Political Economy. 2020 Mar 1;128(3):1065- 1147.

[38] Becker GS. Investment in human capital: Effects on earnings. InHuman Capital: A theoretical and empirical analysis, with special reference to education, second edition 1975 Jan 1 (pp. 13-44). NBER.

[39] Palascakova D, Koľvekova G, Melas D. Analysis of state investments into human capital in Slovak republic.2019

[40] Kucharcikova A, Miciak M, Hitka M. Evaluating the effectiveness of investment in human capital in e-business enterprise in the context of sustainability. Sustainability. 2018 Sep 7;10(9):3211.

[41] Jouled M, Kolosy K, Pellegrin JP. others. Cohesion policy support for local development: Best practice and future policy options. European Commision. 2010.

[42] Brynjolfsson E, Kahin B, editors. Understanding the digital economy: Data, tools, and research. MIT press; 2002 Jan 25.

[43] Bukht R, Heeks R. Defining, conceptualising and measuring the digital economy. Development Informatics working paper. 2017 Aug 3(68).

[44] Vyshnevskyi O. Unity of digital and virtual economies within concept of Dataism. Virtual Economics. 2019 Jul 7;2(3):7-21.

[45] Black SE, Lynch LM. How to compete: The impact of workplace practices and information technology on productivity. Rev Econ Stat. 2001 Aug 1;83(3):434-445.

[46] Wojick DE, Warnick WL, Carroll BC, Crowe J. The digital road to scientific knowledge diffusion; a faster, better way to scientific progress? D-Lib Magazine. 2006 Jun 1;12(6).

[47] Berson IR, Berson MJ. Digital literacy for effective citizenship. (Advancing Technology). Social Education. 2003 Apr 1;67(3):164-168.

[48] De Luca LM, Atuahene-Gima K. Market knowledge dimensions and cross-functional collaboration: Examining the different routes to product innovation performance. Journal of marketing. 2007 Jan;71(1):95-112.

[49] Boschma RA, Lambooy JG. Knowledge, market structure, and economic coordination: dynamics of industrial districts. Growth and change. 2002;33(3):291-311. DOI