Demand-Side Attributes and Resource Reconfiguration in Human Asset Intensive Firms

39 Pages Posted: 30 Jun 2017 Last revised: 21 Aug 2018

See all articles by Philipp Meyer-Doyle

Philipp Meyer-Doyle

INSEAD - Strategy

John Kenneth Mawdsley

Strategy & Business Policy, HEC Paris

Olivier Chatain

HEC Paris - Strategy & Business Policy

Date Written: June 29, 2017

Abstract

Extant research has highlighted the importance of resource reconfiguration for firm performance and has identified important drivers of the reconfiguration of macro-level resources, e.g. business units, focusing primarily on supply-side factors. Yet less is known about drivers of the reconfiguration of micro-level resources, e.g. human assets, and about the role which demand-side factors play in resource reconfiguration. We address these gaps and investigate how client-related factors influence the reconfiguration of micro-level resources in human-asset-intensive firms. Using fine-grained data on law firms advising on M&A mandates, we find that law firms are less likely to reconfigure their human assets (lawyers) on mandates for high-status clients, but more likely to reconfigure them when a client has a greater proclivity to switch business between multiple suppliers. Law firms also reconfigure their human assets less for incoming client projects when they have provided prior M&A services to the client, but they are more likely to reconfigure them when the client relationship has a broader scope. Finally, we also show that the size of a firm’s client portfolio lowers reconfiguration. Our paper extends the literature on resource reconfiguration by explicating antecedents of the reconfiguration of micro-level resources and by highlighting the role demand-side factors play in it. We also contribute to the strategic human capital literature by showing how demand-side factors shape human capital deployment. Finally, we also add to the micro-foundations of resource-based theory by studying important micro-foundational processes underlying a firm’s capacity to reconfigure its resources.

Keywords: Strategic Human Capital; Resource Reconfiguration; Resource Based Theory; Micro-Foundations of Strategy; Human-Asset-Intensive Firms

Suggested Citation

Meyer-Doyle, Philipp and Mawdsley, John Kenneth and Chatain, Olivier, Demand-Side Attributes and Resource Reconfiguration in Human Asset Intensive Firms (June 29, 2017). HEC Paris Research Paper No. SPE-2017-1216. Available at SSRN: https://ssrn.com/abstract=2995105 or http://dx.doi.org/10.2139/ssrn.2995105

Philipp Meyer-Doyle (Contact Author)

INSEAD - Strategy ( email )

1 Ayer Rajah Avenue
Singapore, 138676
Singapore

John Kenneth Mawdsley

Strategy & Business Policy, HEC Paris ( email )

1 rue de la Liberation
Jouy-en-Josas Cedex, 78351
France

Olivier Chatain

HEC Paris - Strategy & Business Policy ( email )

1, rue de la Libération
Jouy-en-Josas Cedex, 78351
France

HOME PAGE: http://www.olivierchatain.com

Register to save articles to
your library

Register

Paper statistics

Downloads
57
rank
353,091
Abstract Views
571
PlumX Metrics