The Linkage Between Individual Value and Knowledge Creation in Human Capital

Abstract

This study aims to examine the relationship between individual value and knowledge creation in human capital.The effect of individual value on each element of knowledge creation – socialization, externalization, combination and internalization – is tested in this study. The study also tested the effect of each component of knowledge creation with human capital. Data were collected using an online questionnaire. A total of 286 questionnaires were sent to managers of medium-sized companies in the province of Bali, Indonesia. Of the 196 questionnaires that were sent, returned and filled out completely, 158 had responses that were utilizable, showing a usable response rate of 80.61%. Data analysis was carried out using variance-based structural equation modelling with a partial least squares approach (SEM-PLS) with WarpsPLS 7.0. The results of the study found a significant positive effect of individual value on each element of knowledge creation: with socialization, with externalization, with combination and with internalization. This study also found that each component of knowledge creation has a significant positive effect on human capital: socialization, externalization, combination and internalization, respectively. This study shows that the value that is believed by individuals based on knowledge can be a strong factor of competitiveness for future of human capital.