2018
DOI: 10.1111/1748-8583.12213
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The virtuous circle of human resource investments: A precrisis and postcrisis analysis

Abstract: We propose a dynamic model of positive feedback between human resource (HR) investments and companies' economic performance. The model assumes that HR investment increases profitability through labor productivity and, in turn, profitability improves HR investment through organizational slack. Based on data from a sample of 2,497 industrial companies over a 7‐year period (2005–2011), longitudinal analysis corroborates the existence of a two‐way relationship between HR investment and profitability over time. How… Show more

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Cited by 19 publications
(20 citation statements)
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References 61 publications
(223 reference statements)
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“…In other words, performance is the work outcome of each civil servant in an organizational unit assessed based on the employee's work goals and work behaviour. This definition is in line with that of [2][3] [4][5] [6], in which performance is defined as the record of outcome produced on specified job function or activity during a specified time period.…”
Section: Introductionmentioning
confidence: 99%
“…In other words, performance is the work outcome of each civil servant in an organizational unit assessed based on the employee's work goals and work behaviour. This definition is in line with that of [2][3] [4][5] [6], in which performance is defined as the record of outcome produced on specified job function or activity during a specified time period.…”
Section: Introductionmentioning
confidence: 99%
“…However, as the field has evolved, several scholars have identified methodological limitations due to the absence of longitudinal studies (Fabling & Grimes, 2010; Guest, 2011; Jiang & Messersmith, 2018; Saridakis, Lai, & Cooper, 2017). To date, most studies have been based on cross‐sectional data (with some exceptions such as Roca‐Puig, Bou‐Llusar, Beltrán‐Martín, & García‐Juan, 2018; Shin & Konrad, 2017), and so do not allow any inference of causality. Thus, the first aim of this study was to make a methodological contribution to the debate on causality.…”
Section: Introductionmentioning
confidence: 99%
“…In this respect, the literature presents a clear orientation towards responding to the crisis between 2008 and 2014. It should be noted how human resources play a key role within the structure of this cluster, showing the human factor in slack resources, as observed by Bamiatzi et al (2016) and Roca-Puig et al (2019).…”
Section: Co-word Analysismentioning
confidence: 57%