Study of role of business strategy on competencies and human capital - Indian context

Yogesh Misra and Vandna Sharma

International Journal of Business and Globalisation, 2020, vol. 26, issue 3, 203-219

Abstract: The personal competencies and the human capital of their employees are used by organisations to convert business strategy into results leading to their competitiveness. This paper aims to assess whether business strategy impacts employee competencies and whether employee competencies in turn impact the human capital in terms of value and uniqueness. This is assessed empirically using responses from 334 senior HR professionals in India. The findings from structural equation modelling (SEM) reveal that prospector strategy is positively related to three competency, adaptability, customer orientation and innovation while defender strategy is positively related to two competency, result orientation and technical expertise. Adaptability, customer orientation and innovation competency are positively related to human capital uniqueness while result orientation and technical orientation competency are positively related to human capital value. Our study supports the contingent view of competency implying that HR managers should choose their competency framework depending upon the business strategy and requirement of human capital and recruit, train employees accordingly.

Keywords: competency framework; business strategy; resource-based view; human capital; human resources; India. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbglo:v:26:y:2020:i:3:p:203-219

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