Vagonova Oleksandra, Doctor of Economics Sciences, professor of the department of applied economics, entrepreneurship and public administration, NTU «Dniprovska Polytechnic», Dnipro, Ukraine

ORCID: 0000- 0001- 6553- 7771
e-mail: vagonovaag@gmail.com

Karpa Dmytro, postgraduate of the department of applied economics, entrepreneurship and public administration, NTU «Dniprovska Polytechnic», Dnipro, Ukraine

ORCID: 0009- 0001-9928-7974
e-mail: dmytrokarpa@gmail.com

The impact of effective use of human capital on the competitiveness of an enterprise

Abstract. Introduction. In the context of rapid globalization and intensifying competition, enterprises must search for new sources of sustainable growth. Human capital, which encompasses the knowledge, skills, cultural values, and health potential of employees, is one of the key drivers of long-term competitiveness. The effective development and management of human capital not only determine the efficiency with which an enterprise functions, but also its ability to adapt to constant changes in the market environment.

Purpose. This article explores the importance of human capital in business development, highlighting the necessity of effective management under modern economic conditions. Analyzing human capital formation and utilization at the enterprise level revealed primary strategies for strengthening its role in ensuring competitiveness. Based on the scientific contributions of renowned domestic and international scholars, the research emphasizes the importance of creating sustainable competitive advantages as the most reliable strategy for enterprises to survive in a dynamic market environment.

Results. The study emphasizes the multidimensional nature of human capital and the necessity of evaluating its core components: professional, social, intellectual, cultural, and health capital. While the set of these components is universal and applicable at the level of an individual, an enterprise, a region, or society as a whole, the structure of their interrelations is specific to each enterprise. This specificity shapes the effectiveness of strategic and operational decisions in human resource management and directly affects long-term competitiveness. The results demonstrate that increasing the efficiency of human capital utilization requires investments in skills and qualifications, as well as the development of corporate culture and the preservation of employees’ health and well-being.

Conclusions. The practical value of the findings lies in their potential application by enterprises that aim to enhance the efficiency of human capital management and secure sustainable competitive advantages amid intensifying competition. The research outcomes may serve as a methodological basis for further human capital management studies, as well as for developing practical recommendations to improve enterprise performance and ensure long-term growth.

Keywords: human capital, enterprise competitiveness, components of human capital, intellectual capital.

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