Exploring the Role and Importance of Human Capital in Resilient High Performing Organisations: Evidence from Business Clusters

Vijay Pereira (Lead / Corresponding author), Yama Temouri, Charmi Patel

Research output: Contribution to journalArticlepeer-review

27 Citations (Scopus)
1 Downloads (Pure)

Abstract

This paper investigates and explores the link between the resilience of organisations, its human capital and firm performance. We base our analysis on the resource-based view of the firm, cluster strategy, and conservation of resources theories. Our contribution is contextualised by comparing the performance of business clusters across two observational periods, namely pre-recession (2005–2007) and recession (2008–2009) period. We identify six relevant indicators from the extant literature that capture economic dynamism, human capital, and financial viability of firms in order to capture the performance across clusters and capture resilience to the global financial crisis. We contribute by identifying organisations in business clusters that perform better due to being more resilient, particularly during challenging times. Through triangulation we find overwhelming evidence of the overarching role and importance of human capital (people) in driving more successful organisations in business clusters as they possess greater resilience during challenging times such as the recent global financial crises. We show that strong clusters not only improve regional employment and turnover growth over time, but improve resilience of regional economies to downturns through resource gain and crossover processes. We further illustrate that understanding the impact of resource reservoirs, resource passageways and crossover provides a framework for further research and intervention to promote resilience in organisations.

Original languageEnglish
Pages (from-to)769-804
Number of pages36
JournalApplied Psychology
Volume69
Issue number3
Early online date3 Jul 2019
DOIs
Publication statusPublished - 12 Jun 2020

Keywords

  • Resilience
  • Business-Clusters
  • Conservation-of-Resources Theory
  • Global-Financial-Crises
  • Resource-Based-View
  • Firm Performance

ASJC Scopus subject areas

  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Applied Psychology

Fingerprint

Dive into the research topics of 'Exploring the Role and Importance of Human Capital in Resilient High Performing Organisations: Evidence from Business Clusters'. Together they form a unique fingerprint.

Cite this