Multilevel Perspective of Human Capital Resources: Recent Debates on Construct Clarification and its Measurement
Keywords:
Human capital resources, construct definition and measurement, multilevel research, strategic literature, strategic human resource management literature
Abstract
The concept of human capital is defined by G. S. Becker as knowledge, information, ideas, skills, and health of individuals. This concept has influenced many strategic and organizational scholars. With assumption that human capital as an internal organizational resource can be a determinant of competitiveness of the firm, many strategy scholars are interested in human capital resources as a macrolevel phenomenon and conceptualized at higher, organizational level. Simultaneously, researchers within strategic human resource management literature develop different research framework so that are more interested in how specific strategic human resource policies and practices create unique and inimitable human capital that subsequently influences the overall performance of the firm. To gain a full understanding of the processes through which human capital resources manifests and transforms across different organizational levels and how it contributes to competitive advantage, it needs to be conceptualized in a way that integrates the micro and macro research levels suggesting a multilevel research approach. Also, the paper emphasizes the importance of precise definition of the concept of human capital resources, presenting several important definitions. Previous studies that have investigated human capital resources and its causal relationship with organizational success show that the application of different approaches in conceptualization of the construct bring confusion and misunderstanding, and may have implication on the research findings. Based on the conceptual definition of human capital resources, the paper gives an overview of the Multilevel Model of Human Capital Resource Emergence, developed by Ployhart and Moliterno. This model provides a deeper understanding and reveals its essential elements of the human capital resources. Dimensions/measures of the construct adopted in the relevant research studies are also presented and analyzed. In order to raise awareness of the topic, the paper emphasizes the state of recent debates on the concept of HCR as a collective phenomenon and, at the same time, encourages further discussions on theoretical development, as well as possible directions for empirical research.
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References
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2 Campbell BA, Coff R and Kryscynski D. Rethinking sustained competitive advantage from human capital. Academy of Management Review. 2012; 37(3):376-395. Available from: https://doi.org/10.5465/amr.2010.0276 [Accessed August 2018]
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Available from: https://doi.org/10.5465/amp.2014.0127
4 Wright PM, Coff R, Moliterno TP. Strategic human capital: Crossing the great divide. Journal of Management. 2014; 40(2):353-370. Available from: https://doi.org/10.1177%2F0149206313518437
5 Ployhart RE, Moliterno TP. Emergence of the human capital resource: A multilevel model. Academy of Management Review. 2011; 36(1):127-150. Available from: https://doi.org/10.5465/amr.2009.0318
6 Nyberg AJ, Wright PM. 50 Years of human capital research: Assessing what we know, exploring where we go. Academy of Management Perspectives. 2015; 29(3):287-295. Available from: https://doi.org/10.5465/amp.2014.0113
7 Barney JB. Firm resources and sustained competitive advantage. Journal of Management. 1991; 17(1):99-120. Available from: https://doi.org/10.1177%2F014920639101700108
8 Nyberg AJ, Moliterno TP, Hale DJr, Lepak DP. Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management. 2014; 40(1):316-346. Available from: https://doi.org/10.1177%2F0149206312458703
9 Coff R, Kryscynski D. Drilling for micro-foundations of human capital-based competitive advantage. Journal of Management. 2011; 37(5): 1429–1443. Available from: https://doi.org/10.1177/0149206310397772
10 Wright PM, McMahan GC. Exploring human capital: Putting human back into strategic human resource management. Human Resource Management Journal. 2011; 21(2):93-104. Available from: https://doi.org/10.1111/j.1748-8583.2010.00165.x
11 Huselid MA. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal. 1995; 38(3):635-672. Available from: https://psycnet.apa.org/doi/10.2307/256741
12 Combs JG, Liu Y, Hall AT, Ketchen DJ. Do high performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology. 2006; 53(3):501-528. Available from: https://doi.org/10.1111/j.1744-6570.2006.00045.x
13 Wright PM, Dunford BB, Snell, SA. Human resources and the resource based view of the firm. Journal of Management. 2001; 27(6):701-721.
Available from: http://www.sciencedirect.com/science/article/pii/S0149206301001209 [Accessed June 2018]
14 Wright PM, MCcMahan GC. Theoretical perspectives for strategic human resource Management. Journal of Management. 1992; 18(2): 295-320.
Available from: http://www.dphu.org/uploads/attachements/books/books_5027_0.pdf [Accessed June 2018]
15 Klein K, Kozlowski SWJ. From micro to meso: Critical steps in conceptualizing and conducting multilevel research. Organizational Research Methods. 2000; 3(3):211-236. Available from: https://doi.org/10.1177%2F109442810033001
16 Ployhart RE, Nyberg AJ, Reilly G, Maltarich MA. Human capital is dead; long live human capital resources! Journal of Management. 2014; 40(2):371-398. Available from: https://doi.org/10.1177%2F0149206313512152
17 Haq M. Human capital resources: a review and direction for future research. International Journal of Management Development. 2016; 1(4):261-286.
Available from: http://hdl.handle.net/10454/12342 [Accessed June 2019]
18 Crook TR, Todd SY, Combs JG, Woehr DJ, Ketchen DJ. Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology. 2011; 96(3):443–456. Available from: https://doi.org/10.1037/a0022147
19 Nyberg A, Reilly G, Essman S, Rodrigues J. Human capital resources: a call to retire settled debates and to start a few new debates The International Journal of Human Resource Management. 2018; 29(1): 68–86. Available from: https://doi.org/10.1080/09585192.2017.1381138
20 Batjargal B. Entrepreneurial versatility, resources and firm performance in Russia: A panel study. International Journal of Entrepreneurship and Innovation Management. 2005; 5:284–297. Available from: https://dx.doi.org/10.2139/ssrn.258198
21 Shrader R, Siegel D. Assessing the Relationship between Human Capital and Firm Performance: Evidence from Technology–Based New Ventures. Entrepreneurship Theory and Practice. 2007; 31(6):893-908. Available from: https://doi.org/10.1111%2Fj.1540-6520.2007.00206.x
22 Fasci M, Valdez J. A performance contrast of male- and female-owned small accounting practices. Journal of Small Business Management. 1998; 36:1–7. Available from: https://libjournals.mtsu.edu/index.php/jsbs/article/view/27 [Accessed March 2016]
23 De Carolis DM, Litzky B, Eddleston KA. Why networks enhance the progress of new venture creation: The influence of social capital and cognition. Entrepreneurship Theory and Practice. 2009; 33: 527– 545. Available from: https://doi.org/10.1111%2Fj.1540-6520.2009.00302.x
24 Chandler GN, Lyon DW. Involvement in knowledge acquisition activities by venture team members and venture performance. Entrepreneurship Theory and Practice. 2009; 33:571–592. Available from: https://doi.org/10.1111%2Fj.1540-6520.2009.00317.x
25 Combs JG, Ketchen DJ. Explaining interfirm cooperation and performance: Toward a reconciliation of predictions from the resource-based view and organizational economics. Strategic Management Journal. 1999; 20:867–888. Available from: https://doi.org/10.1002/(SICI)1097-0266(199909)20:9%3C867::AID-SMJ55%3E3.0.CO;2-6
26 Dimov DP, Shepherd DA. Human capital theory and venture capital firms: Exploring “home runs” and “strike outs.” Journal of Business Venturing. 2005; 20:1–21.
Available from: https://doi.org/10.1016/j.jbusvent.2003.12.007
27 Manev IM, Gyoshev BS, Manolova TS. The role of human and social capital and entrepreneurial orientation for small business performance in a transitional economy. International Journal of Entrepreneurship and Innovation Management. 2005; 5:298–318.
Available from: https://doi.org/10.1504/IJEIM.2005.006531
28 Mc Guirk H, Lenihan H, Hart M. Measuring the impact of innovative human capital on small firms’ propensity to innovate. Research Policy. 2015; 44(4):965-976 Available from: https://doi.org/10.1016/j.respol.2014.11.008
29 Hitt MA, Bierman L, Shimizu K, Kochhar R. Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective. Academy of Management Journal. 2001; 44:13–28.
Available from: https://psycnet.apa.org/doi/10.2307/3069334
30 Haber S, Reichel A. The cumulative nature of the entrepreneurial process: The contribution of human capital, planning and environmental resources to small venture performance. Journal of Business Venturing. 2007; 22:119–145.
Available from: https://doi.org/10.1016/j.jbusvent.2005.09.005
31 Wright PM, McCormick B, Sherman WS, McMahan GC. The role of human resource practices in petro-chemical refinery performance. International Journal of Human Resource Management. 1999; 10:551–571. Available from: https://doi.org/10.1080/095851999340260
32 Menguc B, Barker T. Re-examining field sales unit performance: Insights from the resource-based view and dynamic capabilities perspective. European Journal of Management. 2005; 39:885–909. Available from: https://doi.org/10.1108/03090560510601824
33 Hatch NW, Dyer JH. Human capital and learning as a source of sustainable competitive advantage. Strategic Management Journal. 2004; 25:1155–1178.
Available from: https://doi.org/10.1002/smj.421
34 Lee C, Lee K, Pennings JM. Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal. 2001; 22:615–640. Available from: https://doi.org/10.1002/smj.181
35 Thompson M, Heron P. Management capability and high performance work organization. International Journal of Human Resource Management. 2005; 16:1029–1048. Available from: https://psycnet.apa.org/doi/10.1080/09585190500120806
36 Kor Y. Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal. 2006; 27:1081–1099. Available from: https://doi.org/10.1002/smj.554
37 Bergh DD. Executive retention and acquisition outcomes: A test of opposing views on the influence of organizational tenure. Journal of Management. 2001; 27:603–622. Available from: https://doi.org/10.1177%2F014920630102700506
38 Carmel A, Schaubroeck J. How leveraging human resource capital with its competitive distinctiveness enhances the performance of commercial and public organizations. Human Resource Management. 2005; 44(4):391-412. Available from: https://doi.org/10.1002/hrm.20081
39 Takeuchi R, Lepak DP, Wang H, Takeuchi K. An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology. 2007; 92:1069–1083. Available from: https://psycnet.apa.org/doi/10.1037/0021-9010.92.4.1069
40 Skaggs BC, Youndt M. Strategic positioning, human capital, and performance in service organizations: A customer interaction approach. Strategic Management Journal. 2004; 25:85–99. Available from: https://doi.org/10.1002/smj.365
41 Ployhart RE, Van Iddekinge CH, MacKenzie WI. Acquiring and Developing Human Capital in Service Contexts: The Interconnectedness of Human Capital Resources. Academy of Management Journal. 2011; 54(2):353–368. Available from: https://doi.org/10.5465/amj.2011.60263097
2 Campbell BA, Coff R and Kryscynski D. Rethinking sustained competitive advantage from human capital. Academy of Management Review. 2012; 37(3):376-395. Available from: https://doi.org/10.5465/amr.2010.0276 [Accessed August 2018]
3 Kryzynski D, Urlih D. Making strategic human capital relevant: A time-sensitive opportunity. Academy of Management Perspectives. 2015; 29(3):357-369.
Available from: https://doi.org/10.5465/amp.2014.0127
4 Wright PM, Coff R, Moliterno TP. Strategic human capital: Crossing the great divide. Journal of Management. 2014; 40(2):353-370. Available from: https://doi.org/10.1177%2F0149206313518437
5 Ployhart RE, Moliterno TP. Emergence of the human capital resource: A multilevel model. Academy of Management Review. 2011; 36(1):127-150. Available from: https://doi.org/10.5465/amr.2009.0318
6 Nyberg AJ, Wright PM. 50 Years of human capital research: Assessing what we know, exploring where we go. Academy of Management Perspectives. 2015; 29(3):287-295. Available from: https://doi.org/10.5465/amp.2014.0113
7 Barney JB. Firm resources and sustained competitive advantage. Journal of Management. 1991; 17(1):99-120. Available from: https://doi.org/10.1177%2F014920639101700108
8 Nyberg AJ, Moliterno TP, Hale DJr, Lepak DP. Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management. 2014; 40(1):316-346. Available from: https://doi.org/10.1177%2F0149206312458703
9 Coff R, Kryscynski D. Drilling for micro-foundations of human capital-based competitive advantage. Journal of Management. 2011; 37(5): 1429–1443. Available from: https://doi.org/10.1177/0149206310397772
10 Wright PM, McMahan GC. Exploring human capital: Putting human back into strategic human resource management. Human Resource Management Journal. 2011; 21(2):93-104. Available from: https://doi.org/10.1111/j.1748-8583.2010.00165.x
11 Huselid MA. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal. 1995; 38(3):635-672. Available from: https://psycnet.apa.org/doi/10.2307/256741
12 Combs JG, Liu Y, Hall AT, Ketchen DJ. Do high performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology. 2006; 53(3):501-528. Available from: https://doi.org/10.1111/j.1744-6570.2006.00045.x
13 Wright PM, Dunford BB, Snell, SA. Human resources and the resource based view of the firm. Journal of Management. 2001; 27(6):701-721.
Available from: http://www.sciencedirect.com/science/article/pii/S0149206301001209 [Accessed June 2018]
14 Wright PM, MCcMahan GC. Theoretical perspectives for strategic human resource Management. Journal of Management. 1992; 18(2): 295-320.
Available from: http://www.dphu.org/uploads/attachements/books/books_5027_0.pdf [Accessed June 2018]
15 Klein K, Kozlowski SWJ. From micro to meso: Critical steps in conceptualizing and conducting multilevel research. Organizational Research Methods. 2000; 3(3):211-236. Available from: https://doi.org/10.1177%2F109442810033001
16 Ployhart RE, Nyberg AJ, Reilly G, Maltarich MA. Human capital is dead; long live human capital resources! Journal of Management. 2014; 40(2):371-398. Available from: https://doi.org/10.1177%2F0149206313512152
17 Haq M. Human capital resources: a review and direction for future research. International Journal of Management Development. 2016; 1(4):261-286.
Available from: http://hdl.handle.net/10454/12342 [Accessed June 2019]
18 Crook TR, Todd SY, Combs JG, Woehr DJ, Ketchen DJ. Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology. 2011; 96(3):443–456. Available from: https://doi.org/10.1037/a0022147
19 Nyberg A, Reilly G, Essman S, Rodrigues J. Human capital resources: a call to retire settled debates and to start a few new debates The International Journal of Human Resource Management. 2018; 29(1): 68–86. Available from: https://doi.org/10.1080/09585192.2017.1381138
20 Batjargal B. Entrepreneurial versatility, resources and firm performance in Russia: A panel study. International Journal of Entrepreneurship and Innovation Management. 2005; 5:284–297. Available from: https://dx.doi.org/10.2139/ssrn.258198
21 Shrader R, Siegel D. Assessing the Relationship between Human Capital and Firm Performance: Evidence from Technology–Based New Ventures. Entrepreneurship Theory and Practice. 2007; 31(6):893-908. Available from: https://doi.org/10.1111%2Fj.1540-6520.2007.00206.x
22 Fasci M, Valdez J. A performance contrast of male- and female-owned small accounting practices. Journal of Small Business Management. 1998; 36:1–7. Available from: https://libjournals.mtsu.edu/index.php/jsbs/article/view/27 [Accessed March 2016]
23 De Carolis DM, Litzky B, Eddleston KA. Why networks enhance the progress of new venture creation: The influence of social capital and cognition. Entrepreneurship Theory and Practice. 2009; 33: 527– 545. Available from: https://doi.org/10.1111%2Fj.1540-6520.2009.00302.x
24 Chandler GN, Lyon DW. Involvement in knowledge acquisition activities by venture team members and venture performance. Entrepreneurship Theory and Practice. 2009; 33:571–592. Available from: https://doi.org/10.1111%2Fj.1540-6520.2009.00317.x
25 Combs JG, Ketchen DJ. Explaining interfirm cooperation and performance: Toward a reconciliation of predictions from the resource-based view and organizational economics. Strategic Management Journal. 1999; 20:867–888. Available from: https://doi.org/10.1002/(SICI)1097-0266(199909)20:9%3C867::AID-SMJ55%3E3.0.CO;2-6
26 Dimov DP, Shepherd DA. Human capital theory and venture capital firms: Exploring “home runs” and “strike outs.” Journal of Business Venturing. 2005; 20:1–21.
Available from: https://doi.org/10.1016/j.jbusvent.2003.12.007
27 Manev IM, Gyoshev BS, Manolova TS. The role of human and social capital and entrepreneurial orientation for small business performance in a transitional economy. International Journal of Entrepreneurship and Innovation Management. 2005; 5:298–318.
Available from: https://doi.org/10.1504/IJEIM.2005.006531
28 Mc Guirk H, Lenihan H, Hart M. Measuring the impact of innovative human capital on small firms’ propensity to innovate. Research Policy. 2015; 44(4):965-976 Available from: https://doi.org/10.1016/j.respol.2014.11.008
29 Hitt MA, Bierman L, Shimizu K, Kochhar R. Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective. Academy of Management Journal. 2001; 44:13–28.
Available from: https://psycnet.apa.org/doi/10.2307/3069334
30 Haber S, Reichel A. The cumulative nature of the entrepreneurial process: The contribution of human capital, planning and environmental resources to small venture performance. Journal of Business Venturing. 2007; 22:119–145.
Available from: https://doi.org/10.1016/j.jbusvent.2005.09.005
31 Wright PM, McCormick B, Sherman WS, McMahan GC. The role of human resource practices in petro-chemical refinery performance. International Journal of Human Resource Management. 1999; 10:551–571. Available from: https://doi.org/10.1080/095851999340260
32 Menguc B, Barker T. Re-examining field sales unit performance: Insights from the resource-based view and dynamic capabilities perspective. European Journal of Management. 2005; 39:885–909. Available from: https://doi.org/10.1108/03090560510601824
33 Hatch NW, Dyer JH. Human capital and learning as a source of sustainable competitive advantage. Strategic Management Journal. 2004; 25:1155–1178.
Available from: https://doi.org/10.1002/smj.421
34 Lee C, Lee K, Pennings JM. Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal. 2001; 22:615–640. Available from: https://doi.org/10.1002/smj.181
35 Thompson M, Heron P. Management capability and high performance work organization. International Journal of Human Resource Management. 2005; 16:1029–1048. Available from: https://psycnet.apa.org/doi/10.1080/09585190500120806
36 Kor Y. Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal. 2006; 27:1081–1099. Available from: https://doi.org/10.1002/smj.554
37 Bergh DD. Executive retention and acquisition outcomes: A test of opposing views on the influence of organizational tenure. Journal of Management. 2001; 27:603–622. Available from: https://doi.org/10.1177%2F014920630102700506
38 Carmel A, Schaubroeck J. How leveraging human resource capital with its competitive distinctiveness enhances the performance of commercial and public organizations. Human Resource Management. 2005; 44(4):391-412. Available from: https://doi.org/10.1002/hrm.20081
39 Takeuchi R, Lepak DP, Wang H, Takeuchi K. An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology. 2007; 92:1069–1083. Available from: https://psycnet.apa.org/doi/10.1037/0021-9010.92.4.1069
40 Skaggs BC, Youndt M. Strategic positioning, human capital, and performance in service organizations: A customer interaction approach. Strategic Management Journal. 2004; 25:85–99. Available from: https://doi.org/10.1002/smj.365
41 Ployhart RE, Van Iddekinge CH, MacKenzie WI. Acquiring and Developing Human Capital in Service Contexts: The Interconnectedness of Human Capital Resources. Academy of Management Journal. 2011; 54(2):353–368. Available from: https://doi.org/10.5465/amj.2011.60263097
Published
2021-02-25
Section
Management and Business
