Competing through customization: Using human resource management to create strategic capabilities
Abstract
Given the increasingly diverse customer preferences, customization has become a strategic opportunity for organizations to create value. There is no systematic effort, however, in understanding the implementation of customization as a competitive strategy. Based on theories of resources and capabilities and the multidimensional view of economic rents, we derive three strategies of customization—mass production, mass customization, and total customization—each creating a unique value for customers and incurring different costs. To bridge the gap in the human resources literature in delineating the strategic capabilities as an intermediate outcome of human resources systems, we further draw from organizational psychology perspectives to infer how the strategic capabilities for customization can be created through different human resources management systems.
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Biographies
Ying Hong is an Assistant Professor in Human Resources & Management in the DeGroote School of Business at McMaster University. She received her Ph.D. in Industrial Relations/Human Resources from the School of Management and Labor Relations at Rutgers University and M.Sc. in I/O Psychology from Saint Mary's University. She specializes in research on the strategic role of human resource management and the linkage between human resource management and service excellence. Her work has appeared in journals such as Academy of Management Journal, Journal of Applied Psychology, Human Resource Management, and Human Resource Management Review and has received the Scholarly Achievement Award from the HR division of the Academy of Management.
Hui Liao is the Smith Dean's Professor in Leadership and Management at the University of Maryland's Robert H. Smith School of Business. She received her Ph.D. with concentrations in OB/HR from the University of Minnesota's Carlson School of Management and B.A. in International Economics from the Renmin University of China. Her primary research interests include leadership, service quality and creativity, strategic human resource management, and workforce diversity. Her research has been published in outlets such as the Academy of Management Journal, Journal of Applied Psychology, Organization Science, Organizational Behavioral and Human Decision Processes, Organization Science, and Personnel Psychology. She has been recognized with the Cummings Scholarly Achievement Award (OB Division, Academy of Management), Scholarly Achievement Award and Early Career Achievement Award (HR Division, Academy of Management), and Distinguished Early Career Contribution Award (Society for Industrial and Organizational Psychology).
Michael C. Sturman (Ph.D., Cornell University) is a Professor of Management, the Kenneth and Marjorie Blanchard Professor of Human Resources, and the Associate Dean for Faculty Development at Cornell University's School of Hotel Administration. There, he teaches undergraduate, graduate, and executive education courses on human resource management and compensation. His current research focuses on the prediction of individual job performance over time and the influence of compensation systems. He has published research articles in journals such as the Journal of Applied Psychology, Academy of Management Journal, Personnel Psychology, and Journal of Management. He has also published hospitality-focused and practitioner-oriented papers in the Cornell Hospitality Quarterly, Compensation and Benefits Review, International Journal of Hospitality Management, Lodging Magazine, Lodging HR, and the American Compensation Association Journal. Michael holds a Ph.D., M.S., and B.S. from Cornell University's School of Industrial and Labor Relations, and is a Senior Professional of Human Resources as certified by the Society for Human Resource Management.
Yu Zhou, Ph.D, is an Associate Professor in the Department of Organization and Human Resources at the School of Business of Renmin University of China. He received his doctoral degree in human resource management from Renmin University, and his doctoral research was carried out while visiting Rutgers University. He specializes in research on strategic HRM, HRM effectiveness within the Chinese context, HRM-innovation/creativity linkage, and the interaction of HRM and leadership.
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