This paper studies the Impact of Human Capital on Business performance in the presence of Service Innovation advantage and Environment Dynamism (ED) & Competitiveness (EC) as moderators in the context of Financial Institutions of Pakistan in an attempt to highlight the importance of Human Capital as a resource that can be leveraged through the use of Service Innovation in response to changing Environment in terms of change in trends and in nature of Competition. The results obtained were analysed through the Mediated Moderation analysis, Correlation, Reliability analysis and Descriptive analysis. The result proved the Relationship between Human Capital and Business performance including the direct, Indirect and total effect, therefore confirming the role of Mediation Played by the Service Innovation Advantage but the Role of Moderators: ED & EC proved to be insignificant.

BBA