Application of human capital theory in China in the context of the knowledge economy

Abstract

With the development of the knowledge economy, research and application of human capital theory has received great attention from many scholars in various countries and in different organizations. In the People's Republic of China (PRC), research on human capital theory is still not mature. However, many organizations have tried to put human capital theory into management practice. Based on human capital theory and relevant research at home and abroad, this study analyses the present situation of the formation and development of human capital in China, and discusses the application of human capital theory in different kinds of Chinese organizations. Research on human capital theory and practice has much room for development in China and will arguably soon become one of the main topics in theoretical study and organizational practice.

Keywords:

• China
• economy
• education
• human capital
• HRM
• intellectual capital
• knowledge economy
• management
• organizations
• PRC

Acknowledgements

The study is part of the research for the National Natural Science Foundation of China (Project No: 70572048). The author would like to thank the Foundation for the financial support. Many thanks also for very helpful comments and ideas from Professors Michael Poole and Malcolm Warner, as well as the reviewers of this paper.