Human capital resource strategies in times of technological change

Abstract

The adoption of new technologies is important for firm performance and competitive advantage. But what workforce strategies do firms deploy when they invest in new technologies? What strategies are most beneficial in the longer term? Drawing on the resource-based view of the firm and a longitudinal data set of all firms in the Swedish manufacturing industry between 2000 and 2020, this study quantifies the occurrence and outcomes of workforce strategies when firms invest in new technologies. Results show that investments are associated with labour growth and stabilizing workforce strategies, rather than labour-saving and radical reconfiguration strategies. Firms using a stabilizing strategy when making investments record better chances for survival. These findings contribute to debates in the field of strategic human resource management and the literature that discuss the contribution of human capital resources to sustained competitive advantage. The results also have important practical implications for HR managers responsible for formulating workforce strategies in times of technological change.