Human Capital and Absorption Capacity in the Maquiladora Industry in Northeastern Mexico: The Effects on Innovation

Objective: The objective of this study is to investigate the effect of human capital and absorption capacity on innovation in the maquiladora industry in the northern region of Mexico. Theoretical Framework: Potential and realized absorptive capacity play different yet complementary roles (Demuner-Flores et al., 2018; Leal-Rodríguez & Albort-Morant, 2015; Zahra & George, 2002). Cassol et al., (2016) confirmed the mediating role of absorptive capacity in the relationship between intellectual capital and innovation and determined that there is a positive relationship between intellectual capital and innovation. Method: The hypotheses and the model proposed have been tested with a quantitative explanatory research design that involves the application of a questionnaire. The technique for data analysis is SEM. The statistical software used was AMOS and SPSS version 24. The sample was composed of 127 companies. Results and Discussion: Human capital was found to have a positive and significant effect on absorption capacity. However, the human capital variable in its specificity dimension had a positive effect, but not significant in innovation, contrary to the effect of the value dimension, which had a positive and significant effect on innovation. Absorption capacity had a positive effect on innovation. Research Implications: The companies under study focus on encouraging the performance of routine activities, not on developing innovative products and processes through the absorptive capacity. Originality/Value: It was the first study carried out in a national context on the constructs (human capital, absorptive capacity and innovation) in the maquiladora industry, contributing to identify human capital as an investment.