Abstract:

The aim of this research is to study the mediating role of absorptive capacity and training in the relationship among the dimensions of human capital and organizational performance. The export of textile sector is constantly declining. This sector is facing many structural and operational problems. In this study, the investigation was done on three dimensions of Human Capital (HC), namely skills, health and education and two mediating variables which are training and absorptive capacity while organizational performance is as dependent variable. A structured questionnaire was adapted. The data was collected from 280 respondents from Karachi and Faisalabad textile factories. To check reliability and validity of data, PLS-SEM algorithm was used. For finding relationship, PLS-SEM bootstrapping was used. The findings of this research shows that skills do not have significant impact on organizational performance. Skills and education do not have a specific indirect impact on organizational performance. According, to finding of this research, dimensions of human capital are partial and full mediated via training and absorptive captivity. Management must focus on all dimensions of HC simultaneously for better organizational performance.