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Human resource involvement in developing intellectual capital

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  • Stephen T.T. Teo
  • Kira Kristal Reed
  • Karen Ly

Abstract

This study examined the extent of a strategic approach to human resource (HR) management in small and medium professional service firms, and if it is used to develop intellectual capital (IC). Data were collected from 165 Australian professional service firms. Path analysis showed that HR involvement and the adoption of a collective set of strategic HR practices contributed positively to IC levels (particularly human, social and organizational capital). IC acts as a mediator between HR practices and firm performance. HR practices alone did not increase the performance of the firms studied. The findings are unique in the context of studies on small- and medium-sized professional service firms in that a holistic approach to assessing both HR practices and all IC components was taken rather than examining the individual construct relationships. In the context studied, HR influence is critical to increasing IC.

Suggested Citation

  • Stephen T.T. Teo & Kira Kristal Reed & Karen Ly, 2014. "Human resource involvement in developing intellectual capital," The Service Industries Journal, Taylor & Francis Journals, vol. 34(15), pages 1219-1233, November.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:15:p:1219-1233
    DOI: 10.1080/02642069.2014.942651
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    References listed on IDEAS

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    1. Jan de Kok & Roy Thurik, 2002. "Human Resource Management within small and medium-sized firms," Scales Research Reports B200103, EIM Business and Policy Research.
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    Cited by:

    1. ?arina Alekseevna Fedotova & Olga Vladislavovna Loseva & Olga Igo-revna Kontorovich, 2016. "Monetary Valuation Of Intellectual Human Capital In Innovative Activity," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 369-385, June.
    2. Steven W. Rayburn & David A. Gilliam, 2016. "Using work design to motivate customer-oriented behaviors," The Service Industries Journal, Taylor & Francis Journals, vol. 36(7-8), pages 339-355, June.
    3. Junaid Rehman & Igor Hawryszkiewycz & Osama Sohaib & Fatuma Namisango & Abdul Samad Dahri, 2023. "Towards the Knowledge-Smart Professional Service Firms: How High-Performance Work Systems Support the Transformation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3640-3670, December.

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