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Author: | Kor, Y. Y. Leblebici, H. |
Title: | How do interdependencies among human-capital deployment, development, and diversification strategies affect firms financial performance? |
Journal: | Strategic Management Journal
2005 : OCT, VOL. 26:10, p. 967 985 |
Index terms: | human resource management strategy profitability geography service |
Language: | eng |
Abstract: | Drawing on the key issues of resource-based view of the company, the authors develop a theory about how companies can combine the successful deployment of their strategic human assets with their strategic management of services and geographical diversifications. Based on a sample of large law firms, the authors note that companys profitability may suffer from simultaneous pursuing of expert human-capital strategy and services and geographical diversification strategies, although these strategies may be profitable when pursued alone. Further, they found how self-developed firm specific associate human capital strategically fits better higher amounts of human-capital leveraging. If human-capital leveraging however is pursued alongside lateral hiring, the profitability decreases. In order to obtain economic benefits from diversification, human-capital leveraging and lateral hiring strategies, companies should understand and manage the complex relationships that underlie among various levels of strategy. |
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