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Human Capital Management for Sustainable Competitive Advantage in the New Economy
Abstract
The critical role of human capital (HC) in creating and sustaining the competitive edge at organizational and national levels is recognized by researchers and practitioners. Human resource (HR) is the major driver of organizational success and the principal element that makes a business. Financial resources and technology are essential but people are the primary means by which progress is made. Leveraging, therefore, the HC to gain and sustain competitive advantage in an environment of accelerated pace of change is highly imperative. The purpose of this article is to discuss the significance and leveraging of human capital (HC) for sustainable competitive advantage (SCA) in the new economy. It gives an overview of the human capital management (HCM) concept, distinguishing it from personnel management and human resource management (HRM) and discusses HCM’s significant role as key differentiator for organizational SCA.
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