Taking It to Another Level: Do Personality-Based Human Capital Resources Matter to Firm Performance?

Journal of Applied Psychology, Vol. 100, No. 3, pp. 935–947, 2015

Posted: 16 May 2016 Last revised: 23 Sep 2018

See all articles by In‐Sue Oh

In‐Sue Oh

Temple University - Department of Human Resource Management

Seongsu Kim

Seoul National University - College of Business Administration

Chad H. Van Iddekinge

Florida State University - College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: May 14, 2015

Abstract

Drawing on the attraction-selection-attrition perspective, strategic human resource management (SHRM) scholarship, and recent human capital research, this study explores organization-level emergence of personality (i.e., personality-based human capital resources) and its direct, interactive, and (conditional) indirect effects on organization-level outcomes based on data from 6,709 managers across 71 firms. Results indicate that organization-level mean emotional stability, extraversion, and conscientiousness are positively related to organization-level managerial job satisfaction and labor productivity but not to financial performance. Furthermore, organization-level mean and variance in emotional stability interact to predict all three organization-level outcomes, and organization-level mean and variance in extraversion interact to predict firm financial performance. Specifically, the positive effects of organization-level mean emotional stability and extraversion are stronger when organization-level variance in these traits is lower. Finally, organization-level mean emotional stability, extraversion, and conscientiousness are all positively related to firm financial performance indirectly via labor productivity, and the indirect effects are more positive when organization-level variance in those personality traits is lower. Overall, the findings suggest that personality-based human capital resources demonstrate tangible effects on organization-level outcomes. Theoretical and practical implications of these findings are discussed along with study limitations and future research directions.

Keywords: personality, performance, human capital resources, attraction-selection-attrition

Suggested Citation

Oh, In-Sue and Kim, Seongsu and Van Iddekinge, Chad H., Taking It to Another Level: Do Personality-Based Human Capital Resources Matter to Firm Performance? (May 14, 2015). Journal of Applied Psychology, Vol. 100, No. 3, pp. 935–947, 2015. Available at SSRN: https://ssrn.com/abstract=2779942

In-Sue Oh

Temple University - Department of Human Resource Management ( email )

1801 Liacouras Walk
Alter Hall 343
Philadelphia, PA 19122
United States

HOME PAGE: http://www.fox.temple.edu/mcm_people/in-sue-oh/

Seongsu Kim (Contact Author)

Seoul National University - College of Business Administration ( email )

1 Kwanakro Kwanakgu
59-707
Seoul, 08826
Korea, Republic of (South Korea)
+82-2-880-8797 (Phone)

HOME PAGE: http://gsb.snu.ac.kr

Chad H. Van Iddekinge

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

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