Purpose – The purpose of this paper is to suggest and empirically test a model that explains employee capabilities from the knowledge‐based perspective. In this model, human capital management practices are employed as a moderator variable.Design/methodology/approach – A valid research instrument was utilized to conduct a survey of 14,769 current employees of a major North American financial services institution. The model was tested by using the partial least squares (PLS) structural equation modeling technique. A thorough analysis of the role of moderator was carried out.Findings – Findings provide support for the proposed model and show that employee capabilities depend on his or her training and development as well as job satisfaction levels. Job satisfaction in turn is affected by training and development, pay satisfaction, supervisor satisfaction, and job insecurity. These relationships are moderated by employee perceptions of human capital management practices. The model exhibits the highest predic...
['Nick Bontis', 'Alexander Serenko']
The moderating role of human capital management practices on employee capabilities