Firm-Specific Human Capital at the Crossroads: A Conversation on Current Issues and Future Directions

Journal article

Russ Coff, Andy El-Zayaty, Martin Ganco, John Mawdsley
Advances in Strategic Management, vol. 41, 2020, pp. 55-73

DOI: 10.1108/S0742-332220200000041003

Cite

APA Click to copy
Coff, R., El-Zayaty, A., Ganco, M., & Mawdsley, J. (2020). Firm-Specific Human Capital at the Crossroads: A Conversation on Current Issues and Future Directions. Advances in Strategic Management, 41, 55–73. https://doi.org/10.1108/S0742-332220200000041003

Chicago/Turabian Click to copy
Coff, Russ, Andy El-Zayaty, Martin Ganco, and John Mawdsley. “Firm-Specific Human Capital at the Crossroads: A Conversation on Current Issues and Future Directions.” Advances in Strategic Management 41 (2020): 55–73.

MLA Click to copy
Coff, Russ, et al. “Firm-Specific Human Capital at the Crossroads: A Conversation on Current Issues and Future Directions.” Advances in Strategic Management, vol. 41, 2020, pp. 55–73, doi:10.1108/S0742-332220200000041003 .

BibTeX Click to copy

@article{russ2020a,
  title = {Firm-Specific Human Capital at the Crossroads: A Conversation on Current Issues and Future Directions},
  year = {2020},
  journal = {Advances in Strategic Management},
  pages = {55-73},
  volume = {41},
  doi = {10.1108/S0742-332220200000041003 },
  author = {Coff, Russ and El-Zayaty, Andy and Ganco, Martin and Mawdsley, John}
}

Abstract

Firm-specific human capital (FSHC) has been an integral part of the vocabulary in the strategy field. Many scholars argue that FSHC inhibits employee mobility and drives employee retention at a discount, value appropriation, and firms' competitive advantage. FSHC also plays a central role in the resource-based view of the firm. In recent years, however, a significant debate has emerged on the validity and usefulness of the construct. The purpose of the chapter is to revisit this debate and discuss both challenges and opportunities related to FSHC. In a form of conversation, we take aim at FSHC from different angles and discuss its role as a mobility friction, in value appropriation of established firms, in the context of transitions between paid employment and entrepreneurship, and in the views of practitioners. While we agree that our understanding of the concept of FSHC must evolve, we continue to see its value in our theoretical toolbox