"When Human Capital Becomes Strategic: Specialization, Human Capital Overlap, and Firm Performance"

This paper bridges multiple levels to investigate how human capital resources at the firm level are influenced and created by human capital at the individual level. Using a novel approach that draws on longitudinal data from the Utah real estate industry, we test the impact of two dimensions of human capital-specialization and overlap-on the value of human capital to individuals and firms. We uncover a paradox of human capital, wherein firms improve performance by employing specialized agents and by constructing profiles with significant human capital overlap, but agents prefer to be generalists or unique specialists. This tension, and the fact that employees can readily depart, highlight the difficulty in creating sustainable advantages from human capital resources. Firm implications are discussed.