Building strategic human capital resources: The effects of strategic entrepreneurship on employee recruitment and retention

Abstract

Although strategic entrepreneurship (SE) and strategic human capital are both crucial for competitive advantage, there is limited knowledge of how SE affects human capital levels within a firm. This study examines the relationship between SE and both employee recruitment and employee retention by drawing on an integrated framework of strategic human capital and incorporating a uniquely created direct construct for measuring SE’s complete domain. Results from survey data of 576 UK-based small- and medium-sized firms indicate that SE is positively related to both employee retention and recruitment. We document the moderating effects of corporate reputation and competitive intensity on those relations.