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

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