Hc Case

Abstract:

From one hand the dynamic capabilities of firms are the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change.

Other hand, Human capital ultimate objectives are linking HR practices and knowledge with goals of the firm to achieve and develop Competitive advantages.

Accordingly, linking both statements would generate that HC is not only working to achieve the organizations objectives and but also to formalize, maintain and develop the firm dynamic capabilities.

HC should also work on sharing and collecting success stories, lessons learnt and implicit individuals' knowledge into institutional explicit knowledge.

The competitive advantage of firms is seen as resting on distinctive processes (ways of

coordinating and combining which is more difficult among horizontal levels but easy in the vertical levels applying the chain of command), shaped by the firm's asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is ampled where conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identlhing new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means