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Firm-Specific, Industry-Specific, and Occupational Human Capital and the Sourcing of Knowledge Work

Author

Listed:
  • Kyle J. Mayer

    (Department of Management and Organization, Marshall School of Business, University of Southern California, Los Angeles, California 90089)

  • Deepak Somaya

    (College of Business, University of Illinois at Urbana–Champaign, Champaign, Illinois 61820)

  • Ian O. Williamson

    (Melbourne Business School, Melbourne, Victoria 3053, Australia)

Abstract

Whereas capability differences are known to impact governance decisions, what drives heterogeneity in firm capabilities? We propose that capability differences may arise from governance choices related to the focal activity and study how firms accumulate capabilities in the firm-specific, industry-specific, and occupational human capital necessary to perform knowledge work. We theorize that prior outsourcing decisions influence the development of firm- and industry-specific human capital and that buyer–supplier differences in the management of skilled employees can produce systematic differences in capabilities based on occupational human capital. Additionally, we explore some contingencies in the development of these types of human capital and their impacts on outsourcing knowledge work. These propositions are tested with a unique data set on the outsourcing of legal work involved in filing patents (i.e., patent prosecution).

Suggested Citation

  • Kyle J. Mayer & Deepak Somaya & Ian O. Williamson, 2012. "Firm-Specific, Industry-Specific, and Occupational Human Capital and the Sourcing of Knowledge Work," Organization Science, INFORMS, vol. 23(5), pages 1311-1329, October.
    • Handle: RePEc:inm:ororsc:v:23:y:2012:i:5:p:1311-1329
    DOI: 10.1287/orsc.1110.0722
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    References listed on IDEAS

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