A resource-based perspective on human capital losses, HRM investments, and organizational performance

Jason DeFrance Shaw, Tae Youn Park, Eugene Kim

Research output: Journal article publicationJournal articleAcademic researchpeer-review

120 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)572-589
Number of pages18
JournalStrategic Management Journal
Volume34
Issue number5
DOIs
Publication statusPublished - 1 May 2013
Externally publishedYes

Keywords

  • human capital
  • organizational performance
  • resource-based view
  • strategic human resource management
  • turnover

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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