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Do Differences Make a Difference? The Impact of Human Capital Diversity, Experience and Compensation on Firm Performance in Engineering Consulting

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  • Keld Laursen
  • Volker Mahnke
  • Per Vejrup-Hansen

Abstract

The paper investigates the relationship between human capital characteristics and firm performance in engineering consulting. Because general experience, firm-specific human capital and diversity carry specific costs and benefits we hypothesize curvilinear (taking inverted U-shapes) relations to firm performance. We find little effect of general experience and firm-specific human capital, but the findings give some support for the curvilinear relation between performance and human capital diversity.

Suggested Citation

  • Keld Laursen & Volker Mahnke & Per Vejrup-Hansen, 2005. "Do Differences Make a Difference? The Impact of Human Capital Diversity, Experience and Compensation on Firm Performance in Engineering Consulting," DRUID Working Papers 05-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:05-04
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ulrich Kaiser & Bettina Müller, 2013. "Team Heterogeneity in Startups and its Development over Time," Working Papers 337, University of Zurich, Department of Business Administration (IBW).
    2. Melero, Eduardo & Palomeras, Neus, 2012. "The renaissance of the "renaissance man"? : specialists vs. generalists in teams of inventors," INDEM - Working Paper Business Economic Series id-12-01, Instituto para el Desarrollo Empresarial (INDEM).
    3. Jane Bourke & Frank Crowley, 2016. "Which organisational changes are most beneficial for firm innovation?," Economics and Business Letters, Oviedo University Press, vol. 5(4), pages 152-158.
    4. Storz, Cornelia & Riboldazzi, Federico & John, Moritz, 2015. "Mobility and innovation: A cross-country comparison in the video games industry," Research Policy, Elsevier, vol. 44(1), pages 121-137.
    5. Giuri, Paola & Ploner, Matteo & Rullani, Francesco & Torrisi, Salvatore, 2010. "Skills, division of labor and performance in collective inventions: Evidence from open source software," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 54-68, January.
    6. Østergaard, Christian R. & Timmermans, Bram & Kristinsson, Kari, 2011. "Does a different view create something new? The effect of employee diversity on innovation," Research Policy, Elsevier, vol. 40(3), pages 500-509, April.
    7. Brixy, Udo & Brunow, Stephan & D'Ambrosio, Anna, 2017. "Ethnic diversity in start-ups and its impact on innovation," IAB-Discussion Paper 201725, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Melero, Eduardo & Palomeras, Neus, 2015. "The Renaissance Man is not dead! The role of generalists in teams of inventors," Research Policy, Elsevier, vol. 44(1), pages 154-167.
    9. Brixy, Udo & Brunow, Stephan & D'Ambrosio, Anna, 2020. "The unlikely encounter: Is ethnic diversity in start-ups associated with innovation?," Research Policy, Elsevier, vol. 49(4).
    10. Zou, Ying & Zhong, Zhuoming & Luo, Jia, 2021. "Ethnic diversity, investment efficiency, mediating roles of trust and agency cost," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 410-420.

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    More about this item

    Keywords

    Educational diversity; human capital; firm performance;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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