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Human Capital as Source for Sustained Competitive Advantages in SMEs: A Core Competencies Approach

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Author Info

  • Carlos M. F-JARDON

    ()
    (Department of Applied Economics, University of Vigo (Spain))

  • Miguel GONZALEZ-LOUREIRO

    ()
    (Department of Business Management and Marketing, University of Vigo (Spain))

Abstract

Human capital is a source of competitive advantage, since it helps to build core competencies which position the company above its competitors. Core competencies are dynamic competencies of superior hierarchy, which integrate, build and reconfigure internal and external factors of business to create value. Core competencies are competitive advantages when an organization gets better performance than competitors. Human capital is source of competitive advantage but it possibly does not directly affect to performance. It needs to associate with other elements in core competencies. These associations are not well known. That is the goal of this paper: to determine how human capital affects the organizational performance through core competencies. We argue that human capital needs other intellectual capital-based elements to constitute core competencies which finally improve and yields above average performance.

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Bibliographic Info

Article provided by Faculty of Management, Academy of Economic Studies, Bucharest, Romania in its journal ECONOMIA seria MANAGEMENT / ECONOMY - MANAGEMENT series.

Volume (Year): 16 (2013)
Issue (Month): 2 (December)
Pages: 255-276

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Handle: RePEc:rom:econmn:v:16:y:2013:i:2:p:255-276

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Related research

Keywords: Sustained Competitive Advantage; human capital; intellectual capital; SMEs; core competencies.;

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  1. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
  2. Katchova, Ani L., 2010. "Structural changes in U.S. agriculture: Financial performance of farms in transition," 114th Seminar, April 15-16, 2010, Berlin, Germany 60965, European Association of Agricultural Economists.
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  4. Ferligoj, Anuska & Prasnikar, Janez & Jordan, Vesna, 1997. " Competitive Advantage and Human Resource Management in SMEs in a Transitional Economy," Small Business Economics, Springer, vol. 9(6), pages 503-14, December.
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  6. González-Loureiro, Miguel & Pita-Castelo, Jose, 2012. "A model for assessing the contribution of innovative SMEs to economic growth: The intangible approach," Economics Letters, Elsevier, vol. 116(3), pages 312-315.
  7. Tymon Jr., Walter G. & Stumpf, Stephen A. & Doh, Jonathan P., 2010. "Exploring talent management in India: The neglected role of intrinsic rewards," Journal of World Business, Elsevier, vol. 45(2), pages 109-121, April.
  8. Anand, Jaideep & Brenes, Estaban R. & Karnani, Aneel & Rodriquez, Arnoldo, 2006. "Strategic responses to economic liberalization in emerging economies: Lessons from experience," Journal of Business Research, Elsevier, vol. 59(3), pages 365-371, March.
  9. Pawan S. Budhwar & Harsh K. Luthar & Jyotsna Bhatnagar, 2006. "The Dynamics of HRM Systems in Indian BPO Firms," Journal of Labor Research, Transaction Publishers, vol. 27(3), pages 339-360, June.
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  11. Brenes, Esteban R. & Mena, Mauricio & Molina, German E., 2008. "Key success factors for strategy implementation in Latin America," Journal of Business Research, Elsevier, vol. 61(6), pages 590-598, June.
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