The Nature of Human Capital

This chapter takes a look at the nature of human capital by examining its major components, sources, levels, and types of human capital using the knowledge-based conceptual framework. The framework relies principally on resource-based theory (RBT) and uses knowledge as a strategic resource. There are many other useful theoretical approaches and perspectives to understanding human capital. However, this book utilizes the lens of RBT to understand how countries, specifically African countries, can create value from human capital. The various specificity forms of human capital are better understood through the lens of the different dimensions of knowledge. This chapter helps to lay a better understanding of the nature of human capital after having defined the concept and clarified its meaning in the previous chapter.