Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective

Augustine A. Lado and Mary C. Wilson
The Academy of Management Review
Vol. 19, No. 4 (Oct., 1994), pp. 699-727
Published by: Academy of Management
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Page Count: 29
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Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective
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Drawing on the theoretical insights from the resource-based view of strategic management, this article explores the potential of human resource systems to facilitate or inhibit the development and utilization of organizational competencies. These competencies-managerial, input-based, transformational, and output-based-are presumed to yield sustained competitive advantage for a firm. The competency-based perspective, by focusing attention on the HR activities, functions, and processes that enhance or impede competency accumulation and exploitation, complements the behavioral perspective (Schuler & Jackson, 1987) and, thus, potentially enhances the understanding of strategic human resource management.

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