Effect of Human Capital Development on the Performance of Garment, Textile and Fashion Industry in Nigeria: Business Founder Perspective

Abstract

The garment and textile sectors in Nigeria have been performing below expectations due to corruption and poor capital factors. This study examined the impact of human capital development as a revitalization force in the sector from the business owners' perspective. We engaged in descriptive survey research with a sample of 350 purposefully selected respondents from 35 garment, textile, and fashion firms in Nigeria. The reliability of the instrument was established at 0.05, while factor loading was found to be efficient. Using the structural equation model (SEM) and partial least squares analysis, we obtained regression weights for the components of the common human capital development factors. We found that education, training, and exposure to diverse experiences were key factors that drive garment, textile, and fashion firms’ performance when considered from the owners’ perspective. Specifically, we found that business owners who undergo quality education yield a significant impact on the productivity of the sector (coefficients = 1.825***), while the frequency of founders’ education, training, and exposure were found to be significantly impacting the sector's productivity (coefficients=1.735***; 3.488**; 1.5**). Business owners with concurrent directorship, mentorship, and managerial experience have the potential to revitalize the sector, increasing their productivity power. Therefore, Nigerian garment, textile, and fashion firms should engage in continual training and education of their top management owners and yield to demand for multiple and concurrent directors in different organizations.