Research Article
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ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS

Year 2019, Volume: 11 Issue: 2, 89 - 103, 01.12.2019
https://doi.org/10.34111/ijebeg.20191121

Abstract

The development of high quality human resource leads to an attainment of sustained competitive advantage is a widespread in the management literature and thus, organizations are trying to distinguish themselves on the basis of human resources and intellectual capital as major cause leading to a sustained competitive advantage. In this regard, human resource (HR) systems are acknowledged as the most important mechanism by which companies use to develop their intellectual capital and then, achieve competitive advantage. In this study, a correlation design was utilized to measure the type and the degree of correlation between HR systems, intellectual capital and competitive advantage. The results of the study demonstrate that the practices and systems of human resource management do play a significant role in the development of intellectual capital. In addition, human capital drives an organization’s strategic competitive advantage. Additionally, acquisition HR practices were found to be significantly correlated with strategic competitive advantage and thus, the findings partially support that HR systems not only affect competitive advantage through the facilitation of intellectual capital, but also represent a direct basis for the achievement of competitive advantage.

References

  • Barney. (1991). Firm resources and sustained competitive advantage. Journal of Management, pp.99-120.
  • Bowen, D. a. (1988). Service marketing and management: implications for organizational behavior. Research in Organizational Behaviour, 10, 43–80 .
  • Chen, C. J. (2009). Strategic human resource practices and innovation performance – The mediating role of knowledge management capacity. . Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance – The mediating role of knowledgeJournal of Business Research, 62, 104–114. doi:10.1016/j.jbusres.2007.11.016.
  • Coff. (1997). Human assets and management dilemmas: coping with hazards on the road to resource-based theory. Academy of Management Review, Vol. 22, No.2, 374-402.
  • Coff, R. &. (2011). Drilling for Micro-Foundations of Human Capital Based Competitive Advantages. Journal of Management, 37 (5):1429-1443.
  • Collins, C. J. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of Management Journal,, 740-751.
  • Costa, L. A. (2013). The competitive implications of the deployment of unique resources. Strategic Management Journal, 34: 445–463.
  • Creswell. (2012). Educational Research:Planning, Conducting, and Evaluating Quantitative and Qualitative Research. Boston: Pearson Education, Inc.
  • Delery, J. E., & Roumpi, D. (2017). Strategic human resource management, human capital and competitive advantage: is the field going in circles? Human Resource Management Journal, 1748-8583.12137.
  • Foss, L. P. (2011). Linking customer interaction and innovation: The mediating role of new organizational practices. Organization Science, 22, 980–999. doi:10. 1287/orsc.1100.0584.
  • Hardy, C. a. (1998). The power behind empowerment: implications for research and practice. Human Relations, 51, 4, 451–83.
  • Hatch, N. W. (2004). Human capital and learning as a source of sustainable competitive advantage. . Strategic Management Journal, 25: 1155-1178.
  • IoannisTheotokas, M. &. (2010). Human resource management and competitive advantage: An application of resource-based view in the shipping industry. Marine Policy, 3: 575-582.
  • Kinnie, J. S. (2010). Organisational learning, knowledge assets and HRpractices in professional service firms. Human Resource Management Journal, 64–79.
  • Kor, Y. Y. (2005). How do interdependencies among human-capital deployment, development, and diversification strategies affect firms’ financial performance? . Strategic Management Journal, 26: 967-985.
  • Lado, A. a. (1994). ‘Human resource systems and sustained competitive advantage: a competency-based perspective’. Academy of Management Review, 19: 4, 699–727.
  • Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A competency-based Perspective. The Academy of Management Review, 4: 699 -727.
  • MacDuffie, J. (1995 ). Human resource bundles and manufacturing performance: organizational logic and flexible production systems in the world auto industry . Industrial and Labor Relations Review , 48: 2, 197–221.
  • MacDuffie, J. P. (1995). Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry. Industrial and Labor Relations Review, 2: 197- 221.
  • MacMillan, R. S. (1984). Gaining competitive advantage through human resource management practices. Human Resource Management, 3: 241-255.
  • Morris, S. M. (2011 ). Intellectual capital configurations and organizational capability: An empirical examination of human resource subunits in the multinational enterprise. . Journal of International Business Studies , 42, 805–827. doi:10.10.
  • Nan, L. a. (2012). The Impact of Human Resource Configurations on Intellectual Capital in the Australian Biotechnology Industry. Journal of International Management Studies, Volume 7 Number 1.
  • Ogden, S. G. (2006). Empowerment and Accountability: Evidence from the UK Privatized Water Industry. Journal of Management Studies, 43, 521–55.
  • Ployhart RE, W. J. (2006 ). The structure and function of human capital emergence: a multilevel examination of the attraction-selection attrition model . Academy of Management Journal , 49(4): 661–677.
  • Schilke, O. (2013). On the contingent value of dynamiccapabilities for competitive advantage:the nonlinear moderating effect ofenvironmental dynamism. Strategic Management Journal, 179 – 203.
  • Serenko, B. &. (2009). A causal model of human capital antecedents and consequents in the financial services industry. Journal of Intellectual Capital, pp. 53-69.
  • Shaw, J. D. (2005). Turnover, social capital losses, and performance . Academy of Management Journal , 48: 594-96.
  • Shaw, J. D. (2013). ( A resource-based perspective on human capital losses, HRM investments, and organizational performance. . Strategic Management Journal , 34, 572– 589. doi:10.1002/smj.2025.
  • Snell, S. J. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. The Academy of Management Journal, 467-504.
  • Snell, Y. a. (2004). Human Resource Configurations, Intellectual Capital, and Organizational Performance. Journal of Managerial Issues, pp. 337-360.
  • Soo, T. T. (2017). Intellectual capital–enhancing hr, absorptive capacity, and innovation. Human Resource Management, Vol. 56, No. 3. Pp. 431–454.
  • Subramaniam, M. &. (2005). The influence of intellectual capital on the types of innovative capabilities . Academy of Management Journal , 48, 450–463. doi:10.5465/AMJ. 2005.17407911.
  • Thomson, K. a. (2009). An intellectual capital perspective of human resource strategies and practices. Knowledge Management Research & Practice, 356–364.
  • Weerawardena, J. (2003). The Role of Marketing Capability in Innovation-Based Competitive Strategy. Journal of Strategic Marketing, 11. 10.1080/0965254032000096766.
  • Youndt, S. A. (1996). Human Resource Management, Manufacturing Strategy, and Firm Performance. The Academy of Management Journal, pp. 836-866.
Year 2019, Volume: 11 Issue: 2, 89 - 103, 01.12.2019
https://doi.org/10.34111/ijebeg.20191121

Abstract

References

  • Barney. (1991). Firm resources and sustained competitive advantage. Journal of Management, pp.99-120.
  • Bowen, D. a. (1988). Service marketing and management: implications for organizational behavior. Research in Organizational Behaviour, 10, 43–80 .
  • Chen, C. J. (2009). Strategic human resource practices and innovation performance – The mediating role of knowledge management capacity. . Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance – The mediating role of knowledgeJournal of Business Research, 62, 104–114. doi:10.1016/j.jbusres.2007.11.016.
  • Coff. (1997). Human assets and management dilemmas: coping with hazards on the road to resource-based theory. Academy of Management Review, Vol. 22, No.2, 374-402.
  • Coff, R. &. (2011). Drilling for Micro-Foundations of Human Capital Based Competitive Advantages. Journal of Management, 37 (5):1429-1443.
  • Collins, C. J. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of Management Journal,, 740-751.
  • Costa, L. A. (2013). The competitive implications of the deployment of unique resources. Strategic Management Journal, 34: 445–463.
  • Creswell. (2012). Educational Research:Planning, Conducting, and Evaluating Quantitative and Qualitative Research. Boston: Pearson Education, Inc.
  • Delery, J. E., & Roumpi, D. (2017). Strategic human resource management, human capital and competitive advantage: is the field going in circles? Human Resource Management Journal, 1748-8583.12137.
  • Foss, L. P. (2011). Linking customer interaction and innovation: The mediating role of new organizational practices. Organization Science, 22, 980–999. doi:10. 1287/orsc.1100.0584.
  • Hardy, C. a. (1998). The power behind empowerment: implications for research and practice. Human Relations, 51, 4, 451–83.
  • Hatch, N. W. (2004). Human capital and learning as a source of sustainable competitive advantage. . Strategic Management Journal, 25: 1155-1178.
  • IoannisTheotokas, M. &. (2010). Human resource management and competitive advantage: An application of resource-based view in the shipping industry. Marine Policy, 3: 575-582.
  • Kinnie, J. S. (2010). Organisational learning, knowledge assets and HRpractices in professional service firms. Human Resource Management Journal, 64–79.
  • Kor, Y. Y. (2005). How do interdependencies among human-capital deployment, development, and diversification strategies affect firms’ financial performance? . Strategic Management Journal, 26: 967-985.
  • Lado, A. a. (1994). ‘Human resource systems and sustained competitive advantage: a competency-based perspective’. Academy of Management Review, 19: 4, 699–727.
  • Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A competency-based Perspective. The Academy of Management Review, 4: 699 -727.
  • MacDuffie, J. (1995 ). Human resource bundles and manufacturing performance: organizational logic and flexible production systems in the world auto industry . Industrial and Labor Relations Review , 48: 2, 197–221.
  • MacDuffie, J. P. (1995). Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry. Industrial and Labor Relations Review, 2: 197- 221.
  • MacMillan, R. S. (1984). Gaining competitive advantage through human resource management practices. Human Resource Management, 3: 241-255.
  • Morris, S. M. (2011 ). Intellectual capital configurations and organizational capability: An empirical examination of human resource subunits in the multinational enterprise. . Journal of International Business Studies , 42, 805–827. doi:10.10.
  • Nan, L. a. (2012). The Impact of Human Resource Configurations on Intellectual Capital in the Australian Biotechnology Industry. Journal of International Management Studies, Volume 7 Number 1.
  • Ogden, S. G. (2006). Empowerment and Accountability: Evidence from the UK Privatized Water Industry. Journal of Management Studies, 43, 521–55.
  • Ployhart RE, W. J. (2006 ). The structure and function of human capital emergence: a multilevel examination of the attraction-selection attrition model . Academy of Management Journal , 49(4): 661–677.
  • Schilke, O. (2013). On the contingent value of dynamiccapabilities for competitive advantage:the nonlinear moderating effect ofenvironmental dynamism. Strategic Management Journal, 179 – 203.
  • Serenko, B. &. (2009). A causal model of human capital antecedents and consequents in the financial services industry. Journal of Intellectual Capital, pp. 53-69.
  • Shaw, J. D. (2005). Turnover, social capital losses, and performance . Academy of Management Journal , 48: 594-96.
  • Shaw, J. D. (2013). ( A resource-based perspective on human capital losses, HRM investments, and organizational performance. . Strategic Management Journal , 34, 572– 589. doi:10.1002/smj.2025.
  • Snell, S. J. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. The Academy of Management Journal, 467-504.
  • Snell, Y. a. (2004). Human Resource Configurations, Intellectual Capital, and Organizational Performance. Journal of Managerial Issues, pp. 337-360.
  • Soo, T. T. (2017). Intellectual capital–enhancing hr, absorptive capacity, and innovation. Human Resource Management, Vol. 56, No. 3. Pp. 431–454.
  • Subramaniam, M. &. (2005). The influence of intellectual capital on the types of innovative capabilities . Academy of Management Journal , 48, 450–463. doi:10.5465/AMJ. 2005.17407911.
  • Thomson, K. a. (2009). An intellectual capital perspective of human resource strategies and practices. Knowledge Management Research & Practice, 356–364.
  • Weerawardena, J. (2003). The Role of Marketing Capability in Innovation-Based Competitive Strategy. Journal of Strategic Marketing, 11. 10.1080/0965254032000096766.
  • Youndt, S. A. (1996). Human Resource Management, Manufacturing Strategy, and Firm Performance. The Academy of Management Journal, pp. 836-866.
There are 35 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Abdirashid Ali Adle This is me 0000-0002-9910-3303

Ömür Akdemir This is me 0000-0002-6631-1843

Publication Date December 1, 2019
Submission Date May 1, 2019
Published in Issue Year 2019 Volume: 11 Issue: 2

Cite

APA Adle, A. A., & Akdemir, Ö. (2019). ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS. International Journal of EBusiness and EGovernment Studies, 11(2), 89-103. https://doi.org/10.34111/ijebeg.20191121
AMA Adle AA, Akdemir Ö. ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS. IJEBEG. December 2019;11(2):89-103. doi:10.34111/ijebeg.20191121
Chicago Adle, Abdirashid Ali, and Ömür Akdemir. “ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS”. International Journal of EBusiness and EGovernment Studies 11, no. 2 (December 2019): 89-103. https://doi.org/10.34111/ijebeg.20191121.
EndNote Adle AA, Akdemir Ö (December 1, 2019) ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS. International Journal of eBusiness and eGovernment Studies 11 2 89–103.
IEEE A. A. Adle and Ö. Akdemir, “ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS”, IJEBEG, vol. 11, no. 2, pp. 89–103, 2019, doi: 10.34111/ijebeg.20191121.
ISNAD Adle, Abdirashid Ali - Akdemir, Ömür. “ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS”. International Journal of eBusiness and eGovernment Studies 11/2 (December 2019), 89-103. https://doi.org/10.34111/ijebeg.20191121.
JAMA Adle AA, Akdemir Ö. ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS. IJEBEG. 2019;11:89–103.
MLA Adle, Abdirashid Ali and Ömür Akdemir. “ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS”. International Journal of EBusiness and EGovernment Studies, vol. 11, no. 2, 2019, pp. 89-103, doi:10.34111/ijebeg.20191121.
Vancouver Adle AA, Akdemir Ö. ACHIEVING COMPETITIVE ADVANTAGE IN TECHNOLOGY BASED INDUSTRY: HOW DEVELOPING INTELLECTUAL CAPITAL MATTERS. IJEBEG. 2019;11(2):89-103.