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Human Capital Flows in Failing Organizations: An Integrated Conceptual Framework

Joseph Amankwah-Amoah

MPRA Paper from University Library of Munich, Germany

Abstract: Purpose – The paper examines the dynamics of human capital accumulation and human capital depletion in the processes leading to business failure. Design/methodology/approach – Building on the human capital theory, strategic human resource and business failure literature, this paper develops a conceptual framework which links the inward and outward dimensions of human capital flows in the business failure process. Findings – The analysis sheds light on why some highly skilled individuals may opt to flee declining firms to avoid being stigmatised whilst others become motivated to joint such firms. Research limitations/implications – The paper suggests that understanding the nature and dynamics of both flows are essential when seeking to avert collapse. Originality/value –In spite of a growing body of research on business failure and intense competition for top talent, much of the existing literature has circumvented the relationship between them. This study develops a unified model towards enhancing our understanding of the human capital flows.

Keywords: failing organizations; human capital; business failure; personnel poaching. (search for similar items in EconPapers)
JEL-codes: M1 M14 M16 M3 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-hrm
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