Human Assets and Management Dilemmas: Coping With Hazards On the Road to Resource-Based Theory

Modern Resource-Based Theory(ies)

“…More broadly, Arend also argues that resources that meet the VRIO criteria are usually identified only ex post, making the explanation circular (empirical tests handle this problem, however); (2) the RBV is mainly used as a convenient framing device and specific implications of the view are seldom tested; (3) the link between resources and performance is not carefully examined, for example, in terms of organizational variables that mediate this link; (4) key resources are hard to measure, particularly those "socially complex" and "tacit" resources that the view often focuses on (e.g., Dierickx & Cool, 1989;Barney, 1991); and (5) the gains from superior resources may not be captured at the firm level-but rather be captured by individual resources (Coff, 1997(Coff, , 1999Lippman & Rumelt, 2003a)-in which case firm performance cannot be the dependent variable.…”

“…Coff (1997Coff ( , 1999 argues that rent-sharing and value appropriation among resource owners (e.g. employees, shareholders, suppliers) fundamentally depends on the bargaining power of each resource owner.…”

Supply-chain corporate venturing through acquisition: Key management team retention

“…Although they may serve an important function within a corporate venturing context, the ability to derive value from these acquisitions is often dependent on retaining the human capital of the key supply-chain management team. However, scholars are beginning to recognize the difficulty of realizing value when it is embedded in human assets (Coff, 1997). These actors are not constrained by organizational boundaries and care must be taken to gain their confidence and support after their organization is acquired.…”

“…We begin to address issues concerning the coping mechanisms used by organizations to retain greater value when that value is derived from human assets (cf. Coff, 1997;Wright et al, 2001). If the psychological contract can be used as a device to retain critical inter-organizational talent and limit post-acquisition turnover, our results will have practical significance as well (Gruen, Summers, & Acito, 2000).…”

“…In particular, we argue that the ability of the acquiring firm to maintain the active support of the key talent in the acquired firm is critical to the success of the corporate venturing. Because human assets cannot be owned like a piece of equipment or a technology license (Coff, 1997(Coff, , 1999, the human capital of an organization is not bound to the company after the acquisition. They (the acquired firm's human assets) may decide to leave after the acquisition especially if they perceive that the acquiring firm is mistreating or else neglecting its responsibilities towards them.…”