Role of human capital in forming Lithuanian companies’ competitive advantage

Due to fast formation of knowledge society, human capital assumes more considerable importance. It has a significant influence of activities of companies, quality of their goods, and competitiveness of an organisation. The aim of the article is to analyse the role of human capital in forming Lithuanian private companies’ competitive advantage. It has been established that there is not common concept of human capital in scientific literature. Having revised the concept of human capital, it was estimated that this capital is a complex of human internal resources, which creates and increases the value of an organisation, covers the human knowledge accumulated and formed through reserves of skills, abilities, experience, health and motivation. The empirical research showed that employees best evaluate their abilities and skills, and worst – their qualification and motivation. Therefore, the majority of employees, it is necessary to improve their qualification. Lithuanian private companies mostly compete with products they manufacture and services they render; knowledge of their organisation, mutual information and human capital; high quality of products and services. Employees’ competences and skills have the highest impact of the creation of competitive advantage. The data of the survey demonstrated and allowed grounding the raised hypothesis that human capital occupies an important place of the process of creation of a company’s value and is interrelated with the company’s competitive advantage and the increase of the company’s value