wseas-12208-20261014102736-ab2115 20261014102736995 wseas/wseas wseas.group@gmail.com WSEAS WSEAS Transactions on Business and Economics 1109-9526 2224-2899 09 05 2025 09 05 2025 23 Velga Vevere Commerce department Turiba University 68 Graudu street, Riga, LV-1058 LATVIA David Alimbarashvili Commerce department Turiba University 68 Graudu street, Riga, LV-1058 LATVIA Iveta Linina Commerce department Turiba University 68 Graudu street, Riga, LV-1058 LATVIA Rosita Zvirgzdina Commerce department Turiba University 68 Graudu street, Riga, LV-1058 LATVIA In modern organizations, human capital is not merely an operational resource but a strategic asset, and its misallocation results in value destruction. This paper examines human capital misallocation as a structural source of economic inefficiency. The paper assesses the long-term effects on organizational value by integrating perspectives from labor economics and corporate finance using econometric analysis. The theoretical framework is based on the perception of human capital as a semi-fixed production factor, in which structural mismatches reduce marginal productivity and distort the use of resources, resulting in negative organizational outcomes. The article develops a dynamic conceptual model that captures the mechanisms through which human capital misallocation leads to productivity losses. In conclusion, the findings indicate that inefficient human capital allocation constitutes a structural economic problem that limits the potential of organizational growth and systematically destabilizes long-term financial sustainability. 10 14 2026 10 14 2026 1817 142 https://creativecommons.org/licenses/by/4.0/ 10.37394/23207.2026.23.142 https://wseas.com/journals/articles.php?id=12208 Becker, G. S., Investment in human capital: A theoretical analysis, Journal of Political Economy, Vol. 70, No.5, pt. 2, 1962, pp. 9–49. 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