Achieving competitive advantage through human resource strategy: Towards a theory of industry dynamics

This article uses the resource-based view of the firm, along with other theoretical sources, to outline the basic elements of a theory of 'human resource advantage'. It asks the question: how can firms build and defend competitive superiority through HR strategy across the phases of the typical industry life cycle? Human resources capable of yielding sustained advantage are those which meet tests of (1) rare value, and (2) relative immobility and superior appropriability. While we can identify certain broad principles associated with human resource advantage, cycles of establishment, maturity and renewal in industries add important complexities. The article identifies situations in which we can be reasonably confident we understand the requirements for HR advantage and others where much more research is needed.