2020

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HUMAN CAPITAL DEVELOPMENT IN ISLAMIC BANKING SECTOR OF PAKISTAN
(UMT.Lahore, 2020-01-10) Hafiz Usama Khalid
Human capital has been becoming one of the strategic issues of the Islamic banking industry in Pakistan. The quality of the human capital talent pool is a vital factor for national development and Islamic banking sector performance. Besides, it is also the key to attracting investment opportunities. Thus, the aim of this research is to examine the role of human capital skills in the organizational performance of the Islamic banking sector of Pakistan through the mediating role of social capital. Primary data is taken from senior managers, bankers, investors, and other Shariah scholars of the Islamic banks with the help of a questionnaire to achieve the research objectives. Human capital is measured with career development, skills and knowledge, and training and development. The study finds that human capital has a statistically significant impact on the Islamic banks performance. Furthermore, the study confirms that social capital only mediates the relationship between skills and knowledge and Islamic banks performance. The framework developed in this study is a major contribution towards current practices and challenges in the field of human capital and social capital which affects the performance of Islamic banks in Pakistan.