Human resource strategy and competitive advantage: A longitudinal study ofengineering consultancies

Concepts associated with the resource-based view of the firm are increasing ly finding their way into the strategic HRM debate. Drawing on this literat ure, this paper reports one of the first industry-based, longitudinal inves tigations into the relationship between human resource strategy and competi tive advantage. Set in New Zealand, but in an internationally oriented sect or, the study examines one of the more neglected spheres of professional se rvices: engineering consultancies. The results indicate that the consultanc y firms that survived the major business traumas of the late 1980s and earl y 1990s adopted similar structural, competitive, operational and HR respons es associated with their evolving 'industry recipe'. In interpreting the re lationship between HRM and firm performance, then, it is important to disti nguish those features of a firm's HRM which are strategic to ongoing viabil ity from those that might form the basis of a relatively enduring form of c ompetitive advantage. While there is insufficient evidence to conclude that any of the primary subjects in this study have established an enviable for m of superiority, the should: suggests that opportunities do exist for prof essional service firms to develop industry leadership through superior HRM. The analysis has implications for the wider work of theory-building in str ategic HRM.