Combining Individual and Firm-level Human Capital Resources: The Creation and Performance Benefits of Human Capital Alignment

44 Pages Posted: 19 Apr 2021

See all articles by Ryan Cooper

Ryan Cooper

University of Maryland - Robert H. Smith School of Business

Timothy Gubler

Brigham Young University

Date Written: February 1, 2020

Abstract

We investigate how alignment between firm and individual-level human capital resources influences firm performance. We argue that a high degree of alignment between the firm and individual levels increases human capital utilization, coordination, and transfer. Drawing on Utah residential real estate data from 1996-2014, we find that brokerages with higher brokerage-agent human capital alignment engage in more transactions than brokerages with lower alignment. These benefits increase with firm size. We also find that individual-level human capital similarity in the first year significantly influences firm-individual alignment in subsequent years. These results suggest that managers from founding onward must carefully craft and manage alignment in individual and firm-level human capital resources to generate persistent performance advantages that are resistant to turnover and difficult for competitors to replicate.

Keywords: Human capital, microfoundations, real estate, utilization, complementarities, aggregation

Suggested Citation

Cooper, Ryan and Gubler, Timothy, Combining Individual and Firm-level Human Capital Resources: The Creation and Performance Benefits of Human Capital Alignment (February 1, 2020). Available at SSRN: https://ssrn.com/abstract=3800449 or http://dx.doi.org/10.2139/ssrn.3800449

Ryan Cooper

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Timothy Gubler (Contact Author)

Brigham Young University ( email )

Provo, UT 84602
United States

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