Quantitative Methods

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Introduction

This paper examines how performance is affected by team-specific human capital (TSHC) (Gerrard & Lockett, 2018, p.10). This objective is achieved through the delineation of the two dimensions of TSHC regarding the team manager and members while focusing on the interaction between these dimensions and the effect on influencing performance.

Critique of the current theory

            According to Li et al. (2017, p.26), proponents of the resource-based view (RBV) theory argue that firms outdo each other because of human capital (HC). Nonetheless, empirical evidence from recent meta-analyses points out that the relationship between performance and resources remain inconclusive (Gerrard &Lockett, 2018, p.10). Besides, the existing evidence on the same from various meta-analyses is ambiguous. The authors indicate that this ambiguity can be linked to pre-existing studies that use variables that are logically appropriate but less suitable from an HC perspective. The inconsistencies of the RBV theory also arise from the control of cross-sectional study designs that fail to result in performance enhancements as a result of resource-accumulation processes. 

To overcome the RBV incoherencies the authors of this article focused on an isolation mechanism by differentiating the general and specific HC. To effectively explain the relationship between resources and performance of a firm the authors could also have utilized Porter's Five Forces. Smith (2018, p.73) opine that Porter's five-force framework utilizes a specific area of a firm most especially the resources as the unit of analysis to determine the achievement of profit maximization through enhanced performance. Investigations on this framework reveal that there is a notable relationship between...