Direct and moderating effects of human capital on strategy and performancein professional service firms: A resource-based perspective

The current study examines the direct and moderating effects of human capit al on professional service firm performance. The results show that human ca pital exhibits a curvilinear (U-shaped) effect and the leveraging of human capital a positive effect on performance. Furthermore, the results show tha t human capital moderates the relationship between strategy and firm perfor mance, thereby supporting a resource-strategy contingency fit. The results contribute to knowledge on the resource-based view of the firm and the stra tegic importance of human capital.