EFFECTS OF CORE EMPLOYEES ON ORGANIZATIONAL CAPABILITIES AND FIRM PERFORMANCE

Abstract

This study explores the impact of core employee characteristics on organizational capabilities and firm performance. The resource based view asserts that organizations with valuable and inimitable resources will attain competitive advantage and organizational performance. The effects of valuable and unique core employees on organizational capabilities namely managerial, technical capabilities and output based capabilities and overall firm performance are analyzed in this study. We used a statistical methodology to test the relationships hypothesized in the research model. The results indi- cated a higher organizational capability and organizational performance for firms using the most valuable core employees. Keywords: