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A resource‐based perspective on human capital losses, HRM investments, and organizational performance
Author(s) -
Shaw Jason D.,
Park TaeYoun,
Kim Eugene
Publication year - 2013
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2025
Subject(s) - human capital , human resource management , turnover , workforce , business , human resources , perspective (graphical) , organizational performance , capital (architecture) , industrial organization , labour economics , business administration , economics , management , marketing , market economy , economic growth , archaeology , artificial intelligence , computer science , history
Reversing the focus on human capital accumulations in the resource‐based literature, the authors examine the issue of human capital losses and organizational performance. They theorize that human capital losses markedly diminish the inimitability of human capital stores initially, but that the negative effects are attenuated as human capital losses increase. They argue further that these effects are more dramatic when human resource management ( HRM ) investments are substantial. As predicted, Study 1 shows that the human capital losses (voluntary turnover rates)‐workforce performance relationship takes the form of an attenuated negative relationship when HRM investments are high. Study 2 shows stronger curvilinear effects of voluntary turnover rates on financial performance via workforce productivity under these conditions. Implications for resource‐based theory and strategic HRM are addressed.