Human Capital,Organizational Orientations and Performance: Evidence From the Restaurant Industry

ABSTRACT

The study examines how human capital combines with and influences organizational orientations to determine performance. Specifically, this study investigates small restaurant businesses’ ability to effectively exploit intangible resources and capabilities, rather than tangible resources, in order to produce sustainable competitive advantage. A structured questionnaire was used to survey owners/managers of small independent restaurants in the United States. The results demonstrate that human capital, market orientation and entrepreneurial orientation serve as intangible resources and capabilities that can augment the competitive position of independent restaurants, and thereby improve performance. Human capital also combines with and influences the adoption of market orientation and subsequent performance.