Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 242: Uncovering Recruitment as a Strategic Lever for Various Forms of Organizational Capital

Robert Demir (), Jan Löwstedt and Janne Tienari
Additional contact information
Robert Demir: Ratio, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Jan Löwstedt: Stockholm University School of Business
Janne Tienari: Aalto University and Stockholm University School of Business

Abstract: Whereas the structuring and growth of the firm have long been central to conceptual development in strategy research, the literature has largely ignored how a fundamental practice such as recruitment can be of strategic importance for the sustenance of the firm’s growth. The present study introduces recruitment as a strategic practice and elaborates on how this practice is crucial in creating and editing social and economic capital of the firm and how this interplays with its growth. It suggests three entrenchments – vertical, horizontal, and lateral – for striking a balance between the firm’s explorative (diversification) and exploitative (specialization) activities for creating and modifying its competence base through strategic recruitment.

Keywords: Recruitment; Strategy; Practice; Growth; Capital; Exploration; Exploitation

JEL-codes: M12; M14

18 pages, December 29, 2014

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