Human capital and knowledge governance
by Kaouthar Lajili
International Journal of Strategic Change Management (IJSCM), Vol. 2, No. 4, 2010

Abstract: This paper builds on prior literature of theories of the firm and its boundaries as well as on labour economics and human capital investments, to propose a conceptual framework to help explain and guide managerial decisions in providing both general and firm-specific training and human resource development. Underpinning the training transaction governance choice, organisational form decisions particularly with regard to strategic human resource management are affected. In addition to the two discrete modes of market and hierarchy governance modes, hybrid and plural forms of governance (e.g. concurrent sourcing, relational contracting, alliances and partnerships) combining and/or simultaneously using some aspects of both market and hierarchy are expected to prevail. This paper attempts to highlight some of the more important factors affecting the governance choice of such knowledge-intensive activities (i.e. training and development investments) and offers suggestions for future research.

Online publication date: Wed, 06-Oct-2010

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