The Moderating Effect of Level of Education on Capital Resource for Increased Employee Performance: A Case of Courier Companies in Kenya

Abstract

The concept and perspective of level of education from human capital theory stems from the fact that there is no substitute for knowledge and learning, and that, they need to be relentlessly pursued and focused on by employees. This is according to Rastogi, (2000). Sustaining enterprise competitiveness –is human capital the Answer? He emphasizes on the need for a desire of individuals to invest their skills and expertise in the organization and their position. Many organizations however fail to embrace importance of knowledge, skill and learning as portrayed by high employee turnover as a result of incompetence. This paper analyses the moderating impact of the level of education given dynamic capital resource capabilities on employee performance. Its focus is on Courier companies in Kenya. It is rooted to the Resource based theory, which encourages a shift toward the employee skills and their relative contribution to value creation. A target population of 2800 was considered and a sample size of 339 respondents arrived at using Cochran’s formula. The study was explanatory and used simple random sampling. Data was analyzed using descriptive and inferential statistics. Correlation and moderated regression analysis were used to test the hypothesis. Level of education was found to moderate the relationship between capital resource capabilities, and employee performance. The study provides new insights into factors influencing employee performance through the moderation of level of education. The paper recommends that courier companies should identify their critical capital resource capabilities putting emphasis on those that enhance employee performance and train employees on computer usage and internet.

Keywords: Courier Company, Employee Performance, Level Of Education, Training


Article Review Status: Published

Pages: 23-34 (Download PDF)

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