Human resources and sustained competitive advantage: a resource-based perspective

This paper integrates the theories and findings of micro-level organizational behaviour/human resource management research with the macrolevel resource-based view of the firm, specifically presenting a firm's human resources as an important potential source of sustained competitive advantage. Unlike practice-oriented discussions that assume the role of human resources as a source of sustained competitive advantage, we use the theoretical concepts from the resource-based view of the firm (Wernerfelt, 1984; Barney, 1991) to discuss how human resources meet the criteria for sustained competitive advantage in that they are valuable, rare, inimitable and non-substitutable. The implications for developing human resources as a source of sustained competitive advantage are discussed, particularly examining the role of HR practices and managers in this process.     

Strategic human resource management,human capital and competitive advantage: is the field going in circles?

The resource‐based view (RBV) of the firm has been consistently used as a backdrop in strategic human resource management (SHRM) research and has the potential to bridge the ‘micro–macro’ divide. The tension between the SHRM and the strategic human capital literature, however, signifies that RBV has not reached its potential. In this paper, we begin with a brief review of the conceptual logic linking human resource management (HRM) practices and firm outcomes that aim at highlighting the different treatment of RBV in the SHRM and strategic human capital literatures. We then propose a conceptual model that suggests that HRM practices are not simple levers that enable firms to create sustainable competitive advantage, as most of the strategic human capital research postulates. On the contrary, we argue that HRM practices can contribute to a firm's sustainable competitive advantage not only by enhancing employees' ability, and offering motivation and opportunities, but also by shaping supply‐side and demand‐side mobility constraints.     

Intellectual Capital–Enhancing HR,Absorptive Capacity,and Innovation

This study investigates the role of intellectual capital (i.e., human, social, and organization capital)–enhancing human resource (HR) practices in the development of a firm's absorptive capacity, as well as the mediating role of absorptive capacity in its relationship to the firm's innovation performance. Results show that while human capital–enhancing HR (acquisition and developmental HR) is positively related to absorptive capacity, social capital–enhancing HR affects absorptive capacity through egalitarian HR practices. Organization capital–enhancing HR practices contribute to absorptive capacity through effective information systems. Finally, our findings confirm that the various intellectual capital–enhancing HR practices affect innovation performance through their impact on the firm's absorptive capacity. © 2016 Wiley Periodicals, Inc.     

Human Resource Systems and Ethical Climates: A Resource‐Based Perspective

We know very little about how ethical climates are built and the potential role of a firm's HR system in facilitating the development of this resource. The resource‐based view (RBV) of the firm suggests that human resource systems directly influence a firm's performance through the development of resources that are deeply woven in a firm's history and culture. How this occurs though has not been thoroughly considered in the research literature. Drawing on the theoretical insights from the resource‐based view of the firm, this article explores how HR systems can foster the development and maintenance of five types of ethical climates. In so doing, this article improves our conceptual understanding of why ethical climates may be seen as having strategic value for firms and how HR systems may influence that value. In addition, it contributes to theory by extending the domain of the resource‐based view of the firm by exploring its integration with the varied types of ethical climates. © 2014 Wiley Periodicals, Inc.     

Mindfulness,socioemotional wealth,and environmental strategy of family businesses

The study advances knowledge in the field of business strategy and the environment by incorporating mindfulness theory into the research on socioemotional wealth (SEW) and its environmental consequences in family businesses. Using an integrative model, the paper investigates the relationship between mindfulness SEW dimensions and family firms' environmental strategies, specifically in developing sustainable products and processes. This study also proposes the firm's capabilities as a mediator in this relationship, while market turbulence is a moderator in the relationship between the firm's capabilities and sustainable products and processes. The empirical results show that in protecting SEW, specifically in the identification of family members with the firm and binding social ties, mindfulness provides a rich endowment that develops appropriate capabilities to produce sustainable products and processes. While the moderating role of market turbulence is insignificant, we can infer that irrespective of how turbulent (or not) the market is, the firm's capabilities are a key determinant of sustainable products and processes. Our findings offer theoretical and managerial implications for sustainable practices in the family business context.     

Sustaining Competitive Advantage Through Corporate Environmental Performance

This research investigates the relationship between a firm's environmental efforts and the sustainability of its competitive advantage by analyzing the effects of change in firm environmental performance on the persistence of profitability growth. We find that environmental resources allow a firm with superior financial performance to sustain its competitive advantage, and also complement the efforts of a poorly performing firm to hasten recovery from inferior financial performance. Our findings further indicate that firms attain such positive effects through enhanced profit margins resulting from improved environmental performance. Additionally, we observe that a corporate strategy of improving environmental performance demonstrates management's responsibility to maximize the shareholder wealth of a well‐performing firm. The results provide valuable insights to align environmental activities towards developing unique resources for sustaining the competitive advantage. The study provides an empirical support for creating economic value by benefiting the environment. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Interrelationships between human capital,HRM and innovation in Belgian start-ups aiming at an innovation strategy

Research on the impact of human resource management (HRM) on firm performance has increased since the end of the nineties. Despite the pile of studies and results, critical assessments of this literature stream point to several empirical and theoretical gaps. We focus on two empirical gaps. First, there is a lack of attention to innovation as a measure of firm performance outcome. Most articles use financial (e.g., return on assets (ROA)), organisational (e.g., productivity) and employee related (e.g., commitment) performance measures. Yet, Western knowledge economies consider innovation to be a driving force of economic growth, and international competitive advantage. Moreover, innovation is a function of a firm's ability to create, manage and maintain knowledge. Because knowledge is created by and stored within individuals, human resources as well as HRM may play an important role as drivers of innovation. Second, HRM is considered to be a large company phenomenon. Yet, small businesses provide a great environment to study the HRM-performance relationship because of their transparent nature and the small distance between an individual's and a company's performance. Next, human resources and HRM are crucial to small businesses because they have less tolerance for inefficiency. We examine a sample of small start-ups that aim for an innovation strategy, but are not necessarily successful in terms of innovative output. We expect start-ups with superior human resources and HRM to produce more innovative output. The results show that both human capital (of owners/managers and employees) and HRM are important determinants of innovation in start-ups.     

Promoting Effective Psychological Contracts Through Leadership: The Missing Link Between HR Strategy and Performance

This article offers line managers and HR professionals an actionable, research‐based framework for developing psychological contracts with employees that suit their organizational and human resource (HR) strategy. Leadership styles supporting the firm's HR strategy are key to making psychological contracts that benefit both the firm and its members. When managers' styles are out of sync with HR strategy, this mismatch can lead to poorer performance through ineffective and unfulfilled psychological contracts with workers.     

Why does firm reputation in human resource policies influence college students? The mechanisms underlying job pursuit intentions

Business periodicals, such as Fortune magazine, rank organizations in lists such as the “Best Companies to Work For,” providing applicants with information about firms' human resource practices, including pay, benefits, work‐life, and diversity practices. It is not clear what influence this reputational information about HR practices has on applicant interest in pursuing employment or, more important, why it does so. Given that firms invest substantial resources in HR practices to vie for positions on these lists, the current study sought to fill these gaps in the literature. In the 2 (compensation) × 2 (work‐family) × 2 (diversity) factorial design, 232 college students read about magazine rankings in which a firm's reputation in each HR practice was manipulated as ranking either high or low relative to competitors. We examined perceptions of organizational prestige, anticipated organizational support, and anticipated role performance as mechanisms that explain the influence of HR practice reputation on job pursuit intentions. Our results indicate that a firm's reputation in compensation, work‐family, and diversity efforts increase college students' intentions to pursue employment with a firm. They do so because college students perceive that the organization is prestigious, will be supportive, and will foster their job performance. Our results suggest that a strong employer brand derived from employee‐centered HR practices is important for recruiting college students. © 2012 Wiley Periodicals, Inc.     

What Factors Affect the Persistence of an Innovation Advantage?

Factors that affect a firm's ability to achieve an advantage may differ from those that affect its ability to sustain that advantage. Moreover, if advantage is a relative concept then studies that relate resource stocks to ‘absolute’ outcomes say little about how resources contribute to enduring differences among firms. We explore these issues in the global semiconductor industry by analyzing how a firm's resource stocks contribute to the persistence of an innovation advantage (a relative outcome). The findings demonstrate that a firm's own production experience and the experience held by its partners contribute to temporary innovation advantages. The results also show that a firm's own production experience yields a more durable innovation advantage as compared to the experience held by a firm's partners and that the experience held by a firm's partners provides a more enduring advantage than a firm's patent stock.     

HR and IT capabilities and complementarities in knowledge-intensive services

The main premise of this article is that human resources (HR) and information technologies (IT) are central rather than support functions in knowledge-intensive services. By building management capabilities in both HR and IT, knowledge-intensive services can transform their business processes that, in turn, enable them to provide exemplary services to the customers. Our arguments are grounded in the three related theoretical frameworks of the resource-based view, organizational capabilities, and the theory of complementarities. We suggest that the research and practice in HR and IT fields may have to focus on HR and IT capabilities rather than HR practices or IT investments as the sources of sustainable competitive advantage since capabilities better fit the definition of a ‘resource’ than HR practices or IT investments. Further, organizational capabilities in both HR and IT may enable knowledge-intensive services to transcend the inherent tradeoff between cost and responsiveness. We also discuss the role of HR and IT in knowledge management.     

Using human resource management to enhance competitiveness: Lessons from four excellent companies

Recent research has emphasized the strategic focus that human resource management must have in order for an organization to fully utilize its human resources in a competitive market. However, few empirical studies have been done to date regarding how human resource planning should be linked to strategy. An extensive in-depth study of four large, complex, and very successful companies supports the widespread belief that human resource management can be a powerful tool to enhance competitiveness when policies and practices are logically driven by a firm's strategy and by the key environmental factors it faces. This article describes that study and looks at how the areas of selection, appraisal, reward, and development are handled by these firms. Based on both the specific policies and the actual practices as perceived by middle managers (those that implement the policies), the article presents a contingency framework which offers guidelines as to how certain HRM practices should be implemented to gain competitive advantage.     

Line and HR executives' perceptions of HR effectiveness in firms in the People's Republic of China

This paper examines the differences in perceptions of the importance and effectiveness of human resources (HR) practices in firms operating in the People's Republic of China. The major finding is that while there are no significant differences between HR and line executives' perceptions of the importance of each functional area in human resource management (HRM), there are significant differences between line and HR executives' perceptions of the effectiveness of these areas. Line and HR executives both view the issue of securing, developing and maintaining human resources as a critical issue for the execution of daily operations and long-term strategic plans. However, line executives perceive HR performance effectiveness as significantly lower in these functional areas than HR executives do. Therefore, HR departments are not meeting the performance expectations of line executives. There are three possible reasons for the poor performance of HR departments. First, government intervention may limit HR departments' ability to act strategically. Second, HR departments may not have enough power to act strategically. Third, HR departments may have few capabilities to respond to line executives' demands.     

异质性活文化资源战略与竞争优势——以千年瑶寨为例

本文以资源观理论为基础,以连南瑶族自治县南岗千年瑶寨旅游景区为案例研究对象,研究了异质性活文化资源战略对旅游经济持续竞争优势的影响。研究表明,人、物和情境综合体的民族活文化资源,是具有异质性的资源;只有打造这样的民族文化资源,民族地区才能够获取旅游经济持续的竞争优势。本文认为在进行民族文化资源的开发过程中,要认识到异质性资源自身的特点,只有民族文化资源保持原有的特色,保持其活力和生机,才可能具备可持续的旅游经济竞争优势。研究结论将为民族地区的文化旅游战略发展提供参考性建议。     

Stakeholder pressure for sustainability: Can ‘innovative capabilities’ explain the idiosyncratic response in the manufacturing firms?

This study explores role of innovative capabilities in determining a manufacturing firm's response to stakeholder pressure for adopting sustainable practices. Drawing on the theory of conservatism, we delineate that the firm's response is idiosyncratic and undergirded in the nature of its innovative capabilities. Our empirical investigation reveals that the response to the stakeholder pressure is mediated by the nature of the firm's innovative capabilities. Indian manufacturing firms are identified as unit of analysis for this study. The individual manufacturing facilities implement the environmental practices. The findings suggest that the manufacturing firm's exposure to exploitative/exploratory innovative capabilities triggers sustainable behaviours with ephemeral focus and enduring focus. Further, the exploratory/exploitative innovation is capable of explaining idiosyncratic behaviour for the firms' sustainability practices adoption. The findings delineate, with analysis, that unlike China, regulatory stakeholder pressures in India inhibit the adoption of sustainable practices with enduring focus in manufacturing firms.     

The Inside Track: On the Important (But Neglected) Role of Customers in the Resource‐Based View of Strategy and Firm Growth*

abstract This paper argues for the important role of customers as a source of competitive advantage and firm growth, an issue which has been largely neglected in the resource‐based view of the firm. It conceptualizes Penrose's (1959 ) notion of an ‘inside track’ and illustrates how in‐depth knowledge about established customers combines with joint problem‐solving activities and the rapid assimilation of new and previously unexploited skills and resources. It is suggested that the inside track represents a distinct and perhaps underestimated way of generating rents and securing long‐term growth. This also implies that the sources of sustainable competitive advantage in important respects can be sought in idiosyncratic interfirm relationships rather than within the firm itself.     

Strategic human resources management is irrelevant when it comes to highly skilled professionals in the Canadian new economy

The goal of this paper is to explain the commitment behaviour of highly skilled professionals in Canadian business-to-business (B2B) technology services companies that do not have a formal and explicit managerial commitment strategy and to emphasize the need to take the organizational context into consideration when developing a theory that seeks to account for differences in employee's organizational commitment. Our contribution is to reappraise the relevance of the traditional organizational commitment definition in this organizational context, a new organizational form. We demonstrate that in the companies which are different from the traditional bureaucratic organizational forms and which employ highly qualified professionals, the employment relationship is based on a psychological contract that is not accounted for in the strategic HRM theory.

Indeed, the basic principles of strategic HRM dictate that an organization's most valuable asset is its employees; it is therefore incumbent on management to do whatever is necessary to retain its workforce, readily described as a key resource, and to use human resources management (HRM) practices as tools to elicit commitment. In a study of highly skilled workers in Canadian business-to-business (B2B) technology services companies belonging to the so-called ‘new economy’, we observed that although the competitive advantage enjoyed by these companies depends to a large degree on the creativity and innovativeness of their workforce, these companies barely have any official HRM policies, and the HR department plays a very unobtrusive role. Yet, no one could say that the employees in these firms are not committed – on the contrary! This situation has several implications in terms of career for these professionals, in terms of HR practices for the employers.

Nevertheless, until now, existing theoretical models of organizational commitment have shown little interest in highly skilled workers in general and even less in new economy professionals.     

我国企业人力资源管理的认知度研究

随着进入21世纪,知识已成为生产力、竞争力和经济成就的关键因素.在知识社会,战略性资源则为人力资源.战略人力资源管理是企业获得可持续竞争优势的途径.本论文用实证方式对32家国内企业(国有、民营、外/合资三类)的人力资源经理和一线经理进行了问卷调查,考察在中国政治、经济、文化背景下,人力资源管理作为战略性定位的重要性及有效性,探索人力资源管理现状的不足及发展方向.中国本土企业的人力资源管理实践相对不太成熟.这一状况从根本上制约着本土企业竞争力的提高.为获得可持续竞争优势,中国本土企业应着力提高人力资源管理系统的完整性、科学性及可操作性.     

POLLUTION'S ROLE IN REDUCING URBAN QUALITY OF LIFE IN THE DEVELOPING WORLD

This paper surveys the recent literature exploring the consequences of urban pollution in the developing world for a city's productivity and resident quality of life. The environmental Kuznets curve literature predicts that developing nations will experience significant environmental degradation as a byproduct of economic development. In contrast, the recent literature that we review reverses this logic by arguing that geographic areas featuring lower levels of pollution will experience economic growth through improvements in health and human capital. In an economy where pollution reduces worker productivity, inhibits child development and repels the skilled from living in such an area, those cities featuring less pollution have a competitive advantage in attracting and retaining the skilled. Given the central role that human capital plays in urban economic growth, such cities will be more likely to achieve sustainable long‐term growth.     

Does HRM generate ambidextrous employees for ambidextrous learning? The moderating role of management support

During the past decade, organizational ambidexterity has emerged as a central research stream in management science to investigate how organizations manage to remain successful over time. By using the lens of organizational learning, ambidexterity can be defined as the simultaneous pursuit of exploratory learning and exploitative learning. In this study, we attempt to bring human resource management into the forum by introducing and testing how human resource (HR) systems affect the firm's ambidextrous learning. We show how high-involvement HR systems may support ambidextrous learning by stimulating firm employees to behave ambidextrously. We also emphasize the moderating role of management support in sustaining ambidextrous learning through high-involvement HR systems. A field study of 182 companies from Spain showed that high-involvement HR systems were positively related to ambidextrous learning and validated the moderating role of management support.