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The Involvement of Indigenous Human Capital on Business in Emerging Markets.



Details of Research

Proposed title:

The Involvement of Indigenous Human Capital on Business in Emerging Markets.


In recent years, multinational corporations have increasingly turned to emerging markets to expand their operations due to the potential for a large pool of untapped resources and consumers. In such market, a developing country with a large population, is increasingly seen as an attractive destination for international businesses, while these markets represent significant growth opportunities, these companies often face various challenges – one of which is adequately addressing the local labour environment, a significant shortage of skilled manpower and cultural differences. To succeed in this market, Multinational Companies must address these issues. The shifting landscape of these markets presents a novel context that necessitates the application of new theoretical frameworks to understand how to succeed in them. This dissertation focuses on how businesses involving the local human capital through strategic human resource approach which centers on both organization goals and its employee development in a way they both benefit. This approach focuses on policy decisions effecting the entire organization overall objective linked with people management and development by creating a coherent framework for people to be hired, managed, and developed in a way that support business goals and growth. (Fombrun et al 1984).

Aims and Objectives:

The primary aim of the dissertation is to explore the approach involving local human capital in multinational corporations operating in emerging market. This will be addressed through the following objectiv

1. To assess the extent to which multinational corporations engage with local human capital in emerging markets, and the impact of these engagements.

2. To identify best practices for effectively engaging local human capital, particularly in the context of emerging markets.

3. Preliminary literature review: The ability to hire and maintain a very efficient and enthusiastic workforce in a foreign or international environment leads to the success of international business and continuity. The synergy of different fields of study and skills will surely create a good business but the ability for that business to grow, achieve desired goals, remain in business, and expand depends greatly on hiring, motivating, and developing the right persons.
From different views and thoughts, Human Capital has been seen as combined intelligence, expertise, and skill that gives the organization its unique character. Chaudhury and Nayak (2011) affirmed that human capital is a revenue-creating means instead of cost, it is viewed that people’s competence is a source of wealth creation. They aid in a firm’s comparative advantage and increase in value with use. (Barney 1991 Lado, Boyd and Wright, 1992). The involvement of competent and credible Human resources acts as a magnet that attracts and develop other types of resources and capacities needed in the innovation, growth, and development process of international business. (Bartel and Lichtenberg et al 1987)
In the process of finding and establishing in a new environment, the right knowledge is a major force for any business to gain an adequate advantage over competitors. Argris and Schon (1978) point out that an organization on itself cannot create knowledge. It went on to state that people create knowledge. The individual in the organization creates the right and necessary knowledge used to establish, sustain, and drive business growth and development.
Enyekit, Amaehule & Teerah (2012) describes Human capital knowledge as personal, it is an individual characterized; it can be use by the organizational for a period but cannot be owned by the organization.

Every environment is structured uniquely, known for its laws, culture, belief, religions, regulations, and procedures, knowledge of each environment is gotten through people in that environment, either through written documentation or directly. Establishing a business in a new environment is a phase, the growth of that business is another phase that can be daunting, especially in a developing country. There is a plethora of regulatory and legal requirements as well as cultural differences to consider that are associated with setting up a regional presence. it will surely require one or more employees, local tax registration, the opening of local bank accounts, certifications from local commercials, and setting up employee payrolls in line with Local laws and regulations. Typically, an organization will need to hire indigenous Human personnel with expert knowledge in various fields, and knowledge in local law regulations and culture. For example, local accountants and attorneys to ensure compliance with all regulations.
Human Capital is the gathering of different knowledge, skills, talents, experience, intelligence, training, judgment, and wisdom possessed individually and collectively by individuals in a population. This definition implies that each population possesses its peculiarity different from another.
Enyekit, Amaehule & Teerah (2012) defined it as the invisible factor of production that brings skills, competence, and human intellect to the production and provision of goods and services.
According to Cen, Zhu & Tie (2004) Human capital refers to factors such as capability, skills, and attitude to generating performances paid for by customers and company profit comes from.
According to Bamey (1991), Lado et al (1992) human capital refers to individual knowledge, it contributes to a firms competitive advantage by improving competence and effectiveness, exploiting opportunities or neutralizing threat.
Human capital theorists have typically maintained that organisations can surge their human capital by internally developing the knowledge and skills of their current employees and by attracting individuals with high knowledge and skill levels from the external labour market. That is, organisations can try to make and buy human capital. Human capital grows in two ways; when the organisation uses more of what people know and when more people know more of what is useful to the organisation. (Stewart, 1997).
Indigenous Human Capital Involvement refers to the degree to which locals from a country where Multinational businesses tend to start up are employed and participate in running the business. It involves assessing the knowledge, culture, values, skills, and abilities of these employees to enhance productivity and effectiveness. When employed and motivated, they are committed and enthusiastic about their work, and they are likely to contribute more to the organization. Human capital involvement is important for organizations to achieve their goals, improve both party satisfaction and retention, and maintain a competitive edge. It can be achieved through training, development, mentoring, and other forms of employee engagement activities. (Eby, Freeman, Rush, & Lance, 1999; Lawler 1986).
International Business Growth is the expansion of a business across national borders. It involves establishing a presence in foreign markets and operating in those markets to increase the company’s revenue and profits. International business growth can be achieved through various means such as exporting products or services, setting up foreign offices or subsidiaries, licensing agreements, joint ventures, or mergers and acquisitions. The goal of international business growth is to leverage the opportunities presented by global markets to increase a company’s market share, sales, profitability, and competitiveness. It can also be called internalization. (Ann, 2021)
The role of local human capital is a crucial aspect of multinational corporations’ growth strategies in emerging markets. Multinational corporations that are successful in engaging local human capital often secure a competitive advantage. Thus, it is crucial to provide an in-depth analysis of the effective engagement of local human capital in emerging markets. This dissertation intends to bridge the gap in that knowledge. Specifically, this research project will provide knowledge that guides multinational corporations when operating in emerging markets in improving the use of local human capital, which is beneficial to all concerned stakeholders.

Research question:

This dissertation will provide an answer to the question below.

  • To what extent does the involvement of indigenous human capital contribute to the growth of international businesses?

Proposed research method(s):

The research will be conducted using an approach of mixed methods, that combines qualitative and quantitative information and analysing to understand the problem and yield more complete evidence – the investigator gains both depth and breadth. Creswell (2002)
The study will examine the extent to which multinational business involves indigenous human capital resource and how it brings about business growth.
The primary method for collecting data includes survey questionnaire that will be distributed to employees of two multinational companies in the food industry. This survey will contain close-ended questions concerning of two parts to assess the main variables for the study: the means and level of involvement, focusing on hiring policy and knowledge development and business growth. This survey will also contain demographic questions, such as gender, age and levels of education and ethnicity to determine extent of indigenous involvement and relation between variables. Stewart, (1997).
In addition to conducting the survey research, it will conduct a semi-structed interview, a member of the human resource department each from both multinational businesses. That is a total of two interviews. The purpose of these interviews is to offer insight on the strategies used by management in hiring and knowledge development and how it has led to business growth.
The estimation is 80 employees, 40 each from both multinational businesses. The expected age will be between the age of 18 and 60 years old both male and female.
Secondary data will be gotten from free government publications and previous literatures and books from business scholars. Nwewman (1998)
Data collected will be analysed using Mean and standard deviation while the bivariate analysis will be done using Spearman rank order correlation in SPSS Version 22.0.

Ethical issues:

The research will adhere to the university’s ethical guidelines to ensure the integrity of the study. The qualitative and quantitative research participants will be made aware of the nature of the research and their right to withdraw at any given time. Data will be anonymously recorded and stored and disposed of after analysis.
Literature employed, researchers and all resources will be appropriately referenced to prevent plagiarism.

Timetable/plan for the research: below table show my dissertation plans with respect to the expected dates to achieve. A supervisor will read the draft of the work at intervals.


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