Human capital development as an instrument of cultural transformation

Abstract

This paper examines the increasingly complex problem of corporate culture transformation in ever-changing, crisis-prone organizations, where conventional management models do not adequately guarantee the adaptability and stability of personnel. It is intended to explore the role of the effectiveness of human resource (HR) training and human capital development as a link in the transformation of corporate culture and an innovation driven leadership style. CIIRS is used as the underlying theory that builds on the TEI in assessing the relationship between leadership styles and adaptability that develops in organizations. The paper used comparative techniques to examine the CIIRS factors to determine the most dominant culture transformation patterns among 28 organizations participating in the study and operating in the energy, logistics, and service industries in Ukraine during 2024–2025. Organizations with greater TEI values have greater adaptability, more positive and stable innovation processes, and higher employee engagement. Energy sector organizations tended to have the best combination of innovation leadership and human resource development processes. Logistics organizations had the widest discrepancies between training programs and culture. The findings show that insufficient implementation of innovation leadership strategies in HR training processes significantly hinders corporate culture change. This paper finds that HR training effectiveness has mediating and key significance in corporate culture transformation based on innovation management leadership. The results of this study may provide valuable guidance and recommendations on how companies can improve agility by combining leadership and HR training strategies, and serve as a basis for further analysis and research.