A resource‐based perspective on human capital losses, <scp>HRM</scp> investments, and organizational performance

Shaw, Jason D.; Park, Tae-Youn; Kim, Eugene

doi:10.1002/smj.2025

Cited by 227 publications

(221 citation statements)

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Section: The Importance Of Turnover Rate and Organizational Performanmentioning

confidence: 99%

“…A fourth view is a classic contingency model that originated in the strategic HRM literature. Arthur (1994) argued and found that the relationship between turnover rates and performance was moderated by how much the organization had invested in its people (see also Guthrie (2001) and Shaw et al (2013)). High investment organizations tend to perform better, but suffer greater productivity loss via turnover than organizations that invest little in their people.…”

Section: The Importance Of Turnover Rate and Organizational Performanmentioning

confidence: 99%

“…First, there is certainly a need to continue to test alternative theories of the turnover-performance relationships that already appear in the literature. Indeed, as Shaw, Gupta, et al, (2005) and others have pointed out, tests of differential or competing theories are needed in the literature, as are attempts to integrate these alternative theories (see Nyberg and Ployhart, 2013;Shaw et al, 2013). Second, it is certainly possible that turnover-performance dynamics operate differently in Chinese organizations, leaving open the possibility for new theoretical development and empirical comparisons against existing conceptual foundations.…”

Section: A Call For Researchmentioning

confidence: 99%

“…Instead, he argues that the first instances of voluntary quits are the most damaging to performance (Shaw, Gupta, et al, 2005). In this view, a rise from zero turnover to moderate levels creates the most impactful loss of knowledge, skills, and abilities (Alexander et al, 1994;Shaw et al, 2013) and the most significant disruption-creating gaps in organizational communication networks (Shaw, Duffy, et al, 2005).A third view originates in the organizational behavior literature and, perhaps, enjoys the most popularity, but the least empirical support, in terms of describing turnover's effects. Dalton and Todor (1979) and others lauded a functional view of turnover, arguing that moderate turnover rates bring new ideas and infuse the organization with stagnation-fighting energy from outside.…”

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confidence: 99%

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The neglected state of organizational-level turnover studies in the Chinese context: a call for research

Shaw

Shi

2017

Front. Bus. Res. China

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In this essay, the authors discuss the neglected state of organizational-level turnover research in the Chinese context. They provide a brief overview of the importance of turnover research in the organizational sciences, highlight the role of performancerelated turnover rates research, and outline general theories and findings that appear in the Western and English-language literature. This evidence is compared with a dearth of studies using samples of Chinese organizations and in Chinese-language journals. They conclude by calling for additional theory and empirical studies on turnover rates.Keywords: Turnover, Retention, Strategic human resource management, Organizational performance, Productivity, Strategic managementThe study of turnover-voluntary and involuntary departures from the organization--spans 100 years and the area is considered a foundation area within industrial and organizational psychology, human resource management, and organizational behavior (Hom et al., 2017). Aside from the practical value of turnover research, this domain has produced some of the most iconic individual-level theories in our field, such as March and Simon's (1958) pioneering desirability and ease of movement theory, Mobley's (1979) job content model, Mitchell's (1994) unfolding model, and Mitchell et al.'s (2001) job embeddedness theory. Spanning nearly 70 years, these theories provide detailed, multifaceted explanations for why people quit their jobs and why they stay.In terms of implications for management and organizations, organizational-level turnover research may be even more critical. This stream details not only the antecedents of turnover patterns in organizations, but also how workforce churn impacts the organizational performance. At this level of analysis, the research tradition is nearly as rich. Researchers in many disciplines (e.g., management, finance, economics, sociology, medicine, marketing, and public administration) have detailed conceptual models and accompanied them with empirical testing for why and how the organizational context and practices influence quit and discharge rates (e.g., Batt and Colvin, 2011;Shaw et al., 1998) and for how turnover patterns relate to important outcomes such as accident rates, productivity, profitability, and stock market returns (e.g., Arthur, 1994;Huselid, 1995;Shaw, Gupta, et al., 2005;Shaw, Duffy, et al., 2005). These findings are showcased in two Shaw and Shi Frontiers of Business Research in China (2017) 11:6 DOI 10.1186/s11782-017-0001-y major meta-analyses (Heavey et al., 2013;Park and Shaw, 2013). Theory tradition at the organizational level is also abundant; major, differential theories have been developed or brought to bear in economics, sociology, human resource management, and organizational behavior, to name a few Shaw, Gupta, et al., 2005). In this editorial, we outline the importance of such organizational-level turnover rate research and note the striking dearth and major omission of this type of research in the Chinese context, and outline ...

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Section: The Importance Of Turnover Rate and Organizational Performanmentioning

confidence: 99%

Section: The Importance Of Turnover Rate and Organizational Performanmentioning

confidence: 99%

Section: A Call For Researchmentioning

confidence: 99%

mentioning

confidence: 99%

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The neglected state of organizational-level turnover studies in the Chinese context: a call for research

Shaw

Shi

2017

Front. Bus. Res. China

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“…Precisely identifying its components, let alone putting them together, is difficult, and may make the replication of human capital impossible (Shaw, Park & Kim 2013). The more firm-specific the components of human capital are, the more difficult it is to imitate them and the more valuable they are for companies (Hatch & Dyer 2004).…”

Section: The Importance Of Human Capital In Entering New Marketsmentioning

confidence: 99%

Organising the Training Process in Polish Companies Operating on International Markets

Pauli

2017

KREM

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Training programmes enable employees to develop general and firm-specific competences. In companies that operate on international markets, such programmes also provide the transfer of best practices, routines and procedures between the parent firm and subsidiary. Given the importance of human capital in building sustainable competitive advantage, the training process should be professionally designed and executed. Operating on the domestic market makes it easier to properly design and execute training than it is for companies entering foreign markets. The article presents the results of research that sought to verify the professionalisation of training in 50 Polish companies entering foreign markets. General guidelines for how the process should be executed and the People Capability Maturity Model were used to evaluate the training.

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The Organizational Context and Performance Implications of Human Capital Investment Variability

Bhattacharya

Doty

Garavan

2014

Human Resource Dev Quarterly

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In contrast to the traditional focus of HRD on human capital accumulations we examine the issue of variability in human capital investment. Drawing on Real Options Theory, we theorize that larger firms and firms that are faced with greater organizational risk will create a greater number of options in terms of human capital investment decisions resulting over time in greater variability in labor costs. Based on a large sample of U.S. firms and longitudinal data, we found that labor cost variability was positively related to organizational risk and firm size, but negatively related to capital intensity. These relationships were significant even after controlling for employment variability. Overall, we found that in the long term, firms with greater variability in labor costs achieved better performance. Implications for strategic HRD theory and practice are discussed.

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

Cited by 227 publications

References 58 publications

The neglected state of organizational-level turnover studies in the Chinese context: a call for research

The neglected state of organizational-level turnover studies in the Chinese context: a call for research

Organising the Training Process in Polish Companies Operating on International Markets

The Organizational Context and Performance Implications of Human Capital Investment Variability

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