The Contribution of Core Employees to Organizational Capabilities and Efficiency

O rganizations in the new economy are facing turbulent environments and strong competition. The resource-based view (RBV) of the firm explains the importance of developing valuable and scarce resources and capabilities (Collis & Montgomery, 1995; Hamel, 1994; Prahalad & Hamel, 1990), which are said to be the source of sustainable competitive advantage (Barney, 1991; Barney & Wright, 1998; Wright, McMahan, & McWilliams, 1994). What is the role of human resources in creating and developing capabilities and competitive advantage? Scholars have been providing evidence about the contribution of HR to competitiveness. In particular, HR generates “human capital advantage” through recruiting and retaining exceptional human talent that provides value and cannot be easily imitated by other organizations (Barney & Wright, 1998; Boxall, 1996). Researchers also suggest that HRM helps develop organizational capabilities, a “proxy variable” of competitive advantage. Such capabilities are firm-specific, produce complex social relationships, are embedded in the firm’s hisTHE CONTRIBUTION OF CORE