Understanding how Human Resource Knowledge Accumulation, Depletion Processes impact on a Service Firm Performance

Abstract

This paper outlines how soft stock variables, such as human resource knowledge and more broadly Intellectual Capital (IC), accumulation and depletion processes are dynamically interrelated with firm performance. To this goal, the author suggests a framework making explicit the relationships between policy levers, strategic resources, drivers, end-results and performance indicators. The author argues that to explain a firm superior performance, it is not sufficient to look at the endowment of strategic resources in a given moment of time; it is instead required to investigate over time company strategic resources accumulation and depletion processes and how such assets are interconnected with the critical success factors which in turn may enable the firm to build a sustainable competitive advantage. In conclusion, the paper shows the benefits of the use of a SD simulation model to support decisions makers’ learning processes in planning alternative policies.