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mapping the indirect effects of these specific entrepreneur/entrepreneurial team human capital variables on innovation (via HRM and/or employee human capital). Afterwards, this will allow us to calculate the total effects of these variables on innovation. A parallel exercise can be done for the control variables affecting HRM. Table 4 reflects the results.
Table 4. Indirect and total effects on innovation.
Variable
Indirect effect
Total effect
HRM
/
0.18
Employee human capital
/
0.20
E/T age
0.02
0.01
E/T education level
0.11
0.04
E/T industry experience
-0.06
0.05
E/T management experience
-0.03
-0.10
E/T basic education type: technical
-0.01
-0.01
E/T basic education type: management
-0.04
-0.04
E/T supplementary education type: technical
0.01
0.04
E/T supplementary education type: management
0.03
0.05
Number of board members
0.01
0.01
Share of independent board members
0.00
0.07
Number of tasks excl. assigned to the board
0.04
-0.02
Range of advice areas
0.04
0.11
Company history
0.00
0.12
Company size
0.02
-0.08
Management professionalism
0.11
0.25
Heavy industry
-0.01
0.11
Construction
-0.01
-0.20
Wholesale and retail
-0.01
-0.11
Catering
-0.01
0.08
Transportation and communication
0.00
-0.02
Financial services
0.01
-0.07
Personal and health services
0.02
-0.02
Table 4 shows us that, while there are no significant direct effects of entrepreneur/entrepreneurial team human capital variables on innovation, total effects of such variables can be discerned, due to the existing indirect effects (via HRM and employee human capital). More specifically, we notice that entrepreneur/entrepreneurial