There are mainly six types of Neo-capital drivers. E.g. 1. Structural Capital 2. Intellectual Capital 3. Social Capital 4. Human Capital 5. Cultural Capital 6. Relational Capital.
There are various thoughts delivered by many kinds of literature. Few of them are as follows:
Neo-capital is central to performance in today’s economic environment (Swanson & Holton III, 1997; Nonaka & Takeuchi, 1995; Nooteboom, 2002; Nahapiet & Goshal, 1998). Neo-capital is increasingly viewed as the primary driver of value creation in today’s knowledge economy (Blair & Kochan, 2000; Nooteboom, 2002; Shapiro & Varian, 2003). These various types of neo-capital work together to transform the human capital into organizational output (Nakamura, 2003; Van de Ven, Polley, Garud, & Venkataraman, 2001; Nooteboom, 2002).
Significance of human capital
Any success or failure of organizational processes depends mainly on people at all levels – Directors, Leader, stakeholders & employees. In today’s competitive scenario, business and political leaders have already started to recognize that having good people who are skilled and motivated can make a significant difference. Hence today in any organization, spending money on people is considered as an investment in an important asset instead of expenses.
The movement of labor from agriculture, villagers are running away from the village to town, movement from rural area to urban area etc are the perfect examples of satisfying