Organizational Effectiveness in Women-Owned Small Businesses Within the Defense Sector of Northern Alabama: A Case Study Approach

Abstract

Research into how human capital influences organizational effectiveness in WOSBs as they pursue government contracts is lacking. Understanding the impact of human capital upon organizational effectiveness in WOSBs may also help in recognizing how knowledge and skills contribute to the firm's ability to secure a government contract. Using the case study method, the influence of human capital on organizational effectiveness in WOSBs seeking government contracts is a phenomenon this study explored. Firstly, this research has discovered the importance of knowledge within human capital as a contributor to core competencies; furthermore, this finding was meaningfully observed through the lived experiences of the study’s participants. The overall responses also indicated that skills did not emerge as a significant theme for contributing to core competencies. Knowledge, as a key contributor to core competencies, supports the research of Godbout (2000) who asserted that the impact of knowledge from human resources is key in developing core competencies. It also strengthens the research of Coombs (1996) who claimed that firms should organize in such a way so that knowledge is developed to contribute to core competencies. Secondly, the study found that Contractor Performance Assessment Reports (CPARs), Annual Audits, and Retention Rates were the overarching metrics for measuring organizational effectiveness. This finding helps inform the decades of disagreement among scholars about defining criteria for organizational effectiveness and how to best measure it since it differs for each firm (Cameron, 1986, 1981; Reimann, 1975). Thus, the study extends the Organizational Effectiveness literature while being rooted in the Theory of Human Capital.