Developing Intellectual Capital in Professional Service Firms Using High Performance Work Practices as Toolkit

Abstract

The role of Professional Service Firms (PSFs) has always been crucial in the development of knowledge economies. The effectiveness of these firms is highly attributed to the knowledge capabilities and skills embedded in its human resources and how effectively these resources are utilized in the optimal benefit of the firm. Owing to the ever-increasing growth of the services sector globally, it's critical for the PSFs to gain in-depth awareness on the application of High-Performance-Work-Practices (HPWPs) so as to continually maintain quality of their services to the clients. However, the mechanism for systematically designing and implementing these practices in intellectual capital context is still not fully developed. This research, therefore, theoretically investigates and suggests a linkage mechanism on how Strategic HRM Practices (HPWPs) via (Ability, Motivation and Opportunity)-enhancing bundles stimulate intellectual capital development in professional service firms. By presenting a conceptual framework, this study offers practically meaningful insights to the managers in the service firms on how to implement these practices for effectively meeting client needs and sustaining a competitive advantage.

Information systems project team members: factors for high performance

“…Mentioning trust, IS professionals said that (1) "A good working environment contributes to better individual performance, as the employee does not feel inhibited from sharing information," (2) "Team members must be aware of the work they need to do and should know with whom they can count on for help" and (3) "A good atmosphere helps [the individual] to be more enthusiastic and relaxed, feeling less pressure about the work that is being done." This is in line with previous research (Lencioni, 2002;Weimar et al, 2013;Rehman et al, 2020). The following quotes: (1) "If a person feels good doing the job then the latter will be done with will and better quality," and (2) "Motivation makes us [as individuals] more focused on the tasks at hand because it increases the levels of confidence about work done and, consequently, the responsibility for that same work" illustrate that the IS project teams' productivity and the quality of team products depend on team members being motivated and satisfied with their job (Sudhakar et al, 2011;Weimar et al, 2013;Leonard and van Zyl, 2014).…”

“…One of the IS professionals stated that: "Workers have to be payed a salary in accordance with the work they do and with the labor market." Rewarding high-performing employees (with prestige and advantage opportunities (Klaus et al, 2014)) can influence individual behavior and workrelated performance (Rehman et al, 2020). Differentiated employee compensation strategies 3.…”

“…(3) to commit to team goals, (4) to maintain individuals' (and team's) accountability by keeping track and reviewing progress for assigned responsibilities (Bragg, 1999), and (5) to cooperate by showing respect, giving help and support when needed and stimulating ideas of other team members (Lencioni, 2002;Weimar et al, 2013;Rehman et al, 2020). Trust can be challenged by team members' personality traits.…”

“…Effective teamwork is suggested as being one of the most influential attributes in enhancing IS projects success, contributing to products quality improvement, costs reduction and for dealing with turbulent business environments (Castka et al, 2001;Lencioni, 2002;De Leoz et al, 2013;Rehman et al, 2020). Therefore, to achieve a high level of performance, most of the times impossible for individuals, organizations need to integrate the knowledge, skills, experience and perspectives of a wide range of people into teams (Castka et al, 2001;.…”

Re-Engineering the Human Resource Strategies Amid and Post-Pandemic Crisis: Probing into the Moderated Mediation Model of the High-Performance Work Practices and Employee's Outcomes

“…The burgeoning literature advocated that organizations following HPWPs indicated improved motivation, high-quality services, products, increased innovative task behaviors, creativity, job crafting, efficiency, low levels of absenteeism, and turnover of employees (Kim et al, 2015;Messersmith et al, 2018;Ali et al, 2019;Chughtai and Rizvi, 2019;Aeknarajindawat et al, 2020;He et al, 2021;Li et al, 2021). Additionally, HPWPs augment the skills, capabilities, and intellectual capital of employees, especially in service industries (Ali et al, 2018;Rehman et al, 2020). Recent studies revealed the influential role of HPWPs in human resource management strategies in Western culture; however, limited studies have explored its impact on developing economies (Cooke, 2018;Cooke et al, 2019).…”