Human Capital-Intensive Firms and Symbolic Value Creation

Abstract

The aim of this paper is to study the process of symbolic value creation of human capital-intensive firms. Human capital is a critical resource for firms’ activities. Nevertheless, this dimension is often obscured by industrial economists. In the light of critical resource theory, we analyze how taking into account the inalienable and inimitable nature of specific human capital entails a reconsideration of the role and boundaries of the firm. We show that the firm seeks to coordinate the specialization of its key partners within the frame of its economic boundaries to ensure the long-term optimization of its potential of value. Therefore, the value of the firm depends on all the resources that the firm coordinates. Then we focus on the way HCIF can create different values. We suggest that the firm builds its competitive advantage on different forms of values, in particular the symbolic value incorporated in human capital. Finally, on the basis of these considerations, we identify the wealth included in the critical resources of the firm and to bring to light the process of symbolic value creation associated with it. We suggest that the firm is the value creating entity and the customer both recognizes and derives the value created from whatever it is that the firm provides. We propose a definition of this value and a schema of its creation process based on management works attempts. We conclude by proposing paths of research that could fruitfully be explored to further develop this new subject.

The symbolic value of wine, moderating and mediating factors and their relationship to consumer purchase intention

“…The symbolic value provides a connection between the consumer and the community. Sociologists describe these signs as emotional and moral signs belonging to a cultural and social group defined as a reference (Cezanne and Saglietto, 2014). Therefore, the preference for certain beverages, in the case of this research, wine, over others, is strongly linked to the social and cultural context in which the individual belongs, impacting on their purchasing and consumption preferences (Cezanne and Saglietto, 2014).…”

“…Cezanne and Saglietto (2014) considered that symbolic value creates a relationship between consumers and their community and described this connection as signs of emotional and moral belonging to a cultural and social group defined as a reference. For Levy (1981), products are used symbolically, and talking about their uses is a way of symbolizing life.…”

“…In this way, status is often one signal of power, that being so, obtaining or demonstrating status is one way to obtain or restore power, and products are a means to signal one's status (De Toni and Mazzon, 2014;De Toni, 2019;Rucker and Galinsky, 2008). Cezanne and Saglietto (2014) considered that symbolic value creates a relationship between consumers and their community and described this connection as signs of emotional and moral belonging to a cultural and social group defined as a reference. For Levy (1981), products are used symbolically, and talking about their uses is a way of symbolizing life.…”