Impact of human capital on the competitive advantage of Ethiopian premier football club’ performance

Abstract

Human resources are crucial components and the foundation of any organization, playing a vital role in ensuring an organization’s smooth operation. The organization needs staff members who can deliver optimal job performance to help them reach their goals. Modern work environments are characterized by the constantly evolving interplay between external factors and workforce trends. This study examines the influence of human capital practices on the performance of an Ethiopian male football club at the premier level. This research is directed by a positivist research philosophy and uses a correlation research design. The study encompassed club directors, administration workers, coaches, and players participating in the tournament of the Ethiopian Premier League. 118 participants who completed the self-administered questionnaires were selected using a stratified random sampling technique. The descriptive statistics of frequency distribution, mean, and standard deviation were used to analyze the collected data. Moreover, Pearson’s correlation, analysis of variance, and multiple regressions were used to predict the impact of HR practices on performance, inferential data analysis methods of. As results of correlation show, “human capital variable” has a significant and strong correlation with either club revenue  r (118) = .633**, p < 0.05, or club performance on satisfaction r (118) = .712**, p < 0.05.The linear regression result shows (b = .633, t = 8.799, p < 0.05), human capital management was significant in predicting club revenue. This research demonstrates that human capital significantly impact performance of organization, specifically concerning club revenue and stakeholder satisfaction. The findings indicate that human capital management accounts for 40.0% of the variance in club revenue (R² = .400). Furthermore, it explains 50.7% of the variance in club performance pertaining to stakeholder satisfaction (R² = .507). In conclusion, this study establishes a positive and significant correlation among human capital management practices with both club revenue performance and stakeholder satisfaction.