International Human Capital as a Source of Competitive Advantage for Organizations

Author(s):  
María Bastida Domínguez

The aim of this chapter is to highlight the properties presented by the international human capital that allows us to conceptualize it as a strategic resource of organizations, and therefore, a potential source of sustainable competitive advantage. We highlight the role of international assignments as a preferred way for companies to contribute to developing global skills in leadership. Finally, under the consideration of the difficulties that can raise these assignments, both in terms of cost and effectiveness, we review some other alternative ways of development that companies are currently hiring: short-term expatriates, virtual, self-initiated and inpatriation.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.


Author(s):  
Anak Agung Putu Gede Bagus Arie Susandya ◽  
Putu Diah Kumalasari ◽  
Ida Ayu Ratih Manuari

The purpose of this study is to analyze the role of green intellectual capital on competitive advantage of Lembaga Perkreditan Desa (Balinese Financial Institution). The study tested by using data collected from a sample of 120 respondents that were randomly picked from 35 Lembaga Perkreditan Desa in Denpasar. Findings suggested that green human capital, green relational capital, and green structural capital affect competitive advantage at 17.6%. Furthermore, green human capital and green structural capital had positive effect on competitive advantage. Meanwhile, green relational capital did not affect competitive advantage. The eco-friendly concept remains a critical factor to gain company’s competitive advantage. This study provides insight into green innovation research field.


Author(s):  
Kijpokin Kasemsap

This chapter reveals the role of medical tourism (MT) in emerging markets, give an overview of tourism, medical tourism, and emerging markets; discusses the advancement of medical tourism in emerging markets; the significance of medical tourism in emerging markets; and the characteristics of medical tourism in emerging markets. The execution of medical tourism is essential for modern organizations that seek to serve suppliers and customers, enhance business performance, reinforce competitiveness, and gain ordinary success in emerging markets. Thus, it is essential for modern organizations to consider their medical tourism applications, create a strategic plan to consistently investigate their dynamic promotion, and instantly respond to the needs of medical tourists in emerging markets. Understanding medical tourism will significantly improve organizational performance and achieve sustainable competitive advantage in emerging markets.


Author(s):  
María Victoria Carrillo-Durán ◽  
Juan Luis Tato-Jiménez

This chapter aims to clarify the role of social networking sites (SNSs) such as Facebook, Twitter, and LinkedIn in building the reputation of enterprises. SNSs have a vast potential in the digital environment to build reputation and thus a long-term competitive advantage for companies. The chapter opts for a literature review with which to discuss the difficulties and possibilities companies have in building reputation through SNSs. The SNSs used in companies are marketing-centered. Engagement is promoted only with customers, and is short-term and centered on results instead of being long-term and centered on competitive advantage and promoting engagement with different stakeholders. This issue is not dependent on the size of the company. Instead, it is dependent on understanding the concept of reputation from a strategic point of view, with companies adapting their management to their own particularities and to the different possibilities offered by SNSs.


Author(s):  
Margherita Pagani

This chapter analyses the impact of digitalization on TV marketing strategies focusing on the role of brand as a loyalty-based resource, available to digital television networks to create a sustainable competitive advantage. We analyze the cognitive process adopted by a viewer in the selection process of a TV channel and provide managerial implications for branding strategy and the tools that a television network and an iTV portal need to adopt to communicate values connected with their brand. The goal of this analysis is to offer insights on how a digital television network may create a channel experience leveraging on brand to increase viewers’ loyalty and competitive advantage.


2009 ◽  
Vol 1 (1) ◽  
pp. 13-27 ◽  
Author(s):  
Bill Burnett

We innovate to create competitive advantage. Competitive advantage is found in new knowledge, which solves the buyer's problem. Humans create new knowledge in three ways: through Discovery - stumbling upon something that solves a problem; through Experimentation - trying different approaches to a problem until the solution is found; and through Synthesis - combining existing knowledge to create new knowledge. Today, Synthesis is the most common way we solve problems. Everyone synthesizes, but some people are extraordinarily good at it. They see the big picture, and how all the pieces fit together. Their brains have the ability to reach great mental distances to find remote metaphors which presents knowledge that turns into great solutions. Mixing your experts with people who are novice super-synthesizers can create best in class solutions and give a company a sustainable competitive advantage.


Author(s):  
Muhammad Shahid Khan ◽  
Ilham Sentosa ◽  
Faryal Salman

Purpose Malaysia has set year 2020 as a targeted year to become the most developed nation and to transform the economy into knowledge based. Issue is to become developed nation, but without human capital development (HCD) process, the achievement of this vision would be difficult. Numerous studies articulated the direct impact of human capital on the country economic growth. Human capital is a significant factor to get competitive advantage, which is the need of the day for all countries as well as for organizations to survive in today’s tough competitive environment. Major objective of this research was to find the role of transformational leadership (TL) in human capital effectiveness with the effect of knowledge management (KM) strategies. The paper aims to discuss these issues. Design/methodology/approach A mixed research method is deployed in this study. Data are collected with the help of self-administrated questionnaire and a semi-structured interview. The structural equation modeling technique is used in the data; data are analyzed with the help of AMOS and Nvivo software. Findings The results revealed that transformation has a positive effect on KM strategies. Further, this study also identified that knowledge codification strategy and personalization strategy have a positive impact on human capital effectiveness. Research limitations/implications The results revealed that KM strategies play a vital role in human capital effectiveness. Therefore, the Malaysian healthcare industry should introduce KM strategies in order to enhance employees’ knowledge skills and ability. This study is only conducted in Malaysia; the future researcher can use a different method to test the current research model. Practical implications Knowledge codification and knowledge personalization strategy can contribute to the HCD process. This study can be generalized in the Malaysian healthcare industry. This kind of effort will add value into human capital. Hence, organization can get a competitive advantage with the help of human capital. TL style is the most appropriate style in the current era; this leadership has the ability to transform the system, which is the need of the day. Due to rapid changes in technology, a leader who believes in change can meet the challenges of twenty-first century. Originality/value KM strategies and their use have been a research issue for some time. Companies have also adopted knowledge management strategies tools to support and stimulate knowledge sharing in their organizations and to help employees to find the expertise they are looking for. But no research has been performed on the importance of KM strategies. This paper describes a unique and new framework that the authors devised to help companies to do just that.


2020 ◽  
pp. 000765032097343
Author(s):  
Saurabh A. Lall ◽  
Jacob Park

Although early-stage finance is critical to the growth of most ventures, it is even more important for social ventures as they face the challenges of balancing their social and commercial objectives. Drawing on institutional logics and signaling theory, this study uses a panel data set of 3,401 nascent social ventures to investigate the important role philanthropic grant funding plays in the organizational and financial development of social ventures. We find mixed results, with positive effects on employment and subsequent access to debt finance, but no effects on revenues and access to equity. Our findings connect these theories by suggesting philanthropic grants provide social ventures with flexibility to invest in human capital without pushing them to pursue short-term financial objectives, and that receiving a philanthropic grant provides a signal that is interpreted differently by debt and equity financiers. These findings are especially relevant as funders increasingly use grants to support social entrepreneurship.


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