Relationship Between Knowledge Management and Ethical Leadership on Human Capital Management in Herbal City Community Enterprises: Study on the North of Thailand

Abstract

Yananda Siraphatthada

The productivity of an organization directly depends upon its human capital. Therefore, human capital management is a primary unit which is responsible for the generation of more productivity and the accomplishment of vying advantages by an organization. There are a number of factors that directly impact human capital management; however, according to the current study, knowledge management and ethical leadership have a direct effect on human capital management of organizations, particularly in the North of Thailand. Hence, in the current study, there is a positive influence of knowledge management on ethical leadership and human capital. While ethical leadership mediates between the relationship of knowledge management and human capital management. Moreover, a survey based on 690 employees working in various organizations in the North of Thailand was conducted to collect primary data. A statistical software named Partial Least Square (PLS) was used to analyze the collected primary data to produce the results of the current study. It was concluded that effective knowledge management and ethical leadership have a formative influence on human capital management, which plays a significant role in achieving competitive advantages for an organization. Hence the current study is a booster for the practitioners to bring advancement in human capital management.