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This paper examines how “strategic” chief financial officers (CFOs) with an elite MBA (i.e. elite CFOs) influence (1) stock market reaction to CFO hiring announcements (ex ante measure) and (2) post-hiring firm performance (ex-post measure).

This paper utilizes a comprehensive, proprietary database with information about the educational qualifications and prior professional experience of 1,340 CFOs hired during the period 1994–2014. For each CFO, the authors hand-collected data on the CFO's prior experience as well as CFO's educational profile. The authors also identified the date of CFO hiring from financial press articles. To evaluate performance, the authors consider two different, yet complementary performance measures: (1) the stock market reaction, a priori measure and (2) a traditional measure of performance, which is a post-facto metric related to firm performance.

The results show that hiring CFOs with scarce and strategic human capital elicits a positive market response and leads to significant improvement in firm performance. Further, firms with greater managerial discretion benefit more from hiring elite CFOs. The results hold after controlling for chief executive officer (CEO), CFO, top managment team (TMT), and board characteristics.

This study shows converging and mutually consistent results about what specific types of CFO human capital create firm value and, more importantly, show that such value-creation is only in the case of small firms and high growth firms. The study also advances the stream of literature that contrasts the relative benefits of specialist versus generalist qualifications.

The purpose of this paper is to examine the dynamics of human capital accumulation and human capital depletion in the processes leading to business failure.

Building on the human capital theory, strategic human resource and business failure literature, this paper develops a conceptual framework which links the inward and outward dimensions of human capital flows in the business failure process.

The analysis sheds light on why some highly skilled individuals may opt to flee declining firms to avoid being stigmatised whilst others become motivated to joint such firms.

The paper suggests that understanding the nature and dynamics of both flows are essential when seeking to avert collapse.

In spite of a growing body of research on business failure and intense competition for top talent, much of the existing literature has circumvented the relationship between them. This study develops a unified model towards enhancing our understanding of the human capital flows.

Many of the emerging and transition economies in Central and Eastern Europe (CEE) have been building their economies largely on the infrastructure inherited from Communist times. It is widely recognized that much of the infrastructure in both the private and public sectors must be replaced if those economies are to achieve acceptable rates of economic growth and participate successfully within the broader European Union (EU) economic zone (The Economist, 2003). Upgrading infrastructure includes the likely importation of technology and management expertise, as well as substantial financial commitments. In this regard, inward foreign direct investment (FDI) is a particularly important potential source of capital for the emerging and transition European economies (ETEEs). FDI usually entails the importation of financial and human capital by the host economy with measurable and positive spillover impacts on host countries’ productivity levels (Holland & Pain, 1998a). The ability of ETEEs to attract and benefit from inward FDI should therefore be seen as an important issue within the broader policy context of how these countries can improve and expand their capital infrastructure, given relatively undeveloped domestic capital markets and scarce human capital.

The purpose of this paper is to critique the last decade of research on the effects of high-skill emigration from developing countries, and proposes six new directions for fruitful research.

The study singles out a core assumption underlying much of the recent literature, calling it the “Lump of Learning model” of human capital and development, and describes five ways that research has come to challenge that assumption. It assesses the usefulness of that model in the face of accumulating evidence.

The axioms of the Lump of Learning model have shaped research priorities in this literature, but many of those axioms do not have a clear empirical basis. Future research proceeding from established facts would set different priorities, and would devote more attention to measuring the effects of migration on skilled migrant households, rigorously estimating human capital externalities, gathering microdata beyond censuses, and carefully considering optimal policy – among others.

The recent literature has pursued a series of extensions to the Lump of Learning model. This study urges instead discarding that model, pointing toward a new paradigm for research on skilled migration and development.

Although there is a burgeoning stream of research on lateral hiring (LH), lack of integration of the literature has obscured the past accomplishments and future directions remain unclear. The purpose of this paper is to review and synthesise the existing literature on LH in the spirit of further development of this field.

The paper is based on an extensive review of the literature across multiple social science disciplines.

The study integrates the existing streams of research in such a way that human resources and personnel practitioners see the relevance of research and how they can mitigate the negative effects of LH. The study demonstrates how employers can acquire, develop and retain scarce human capital (HC) to help improve their competitiveness.

The main limitation of the review is that the search might have overlooked studies that employed specialised terminologies or keywords not used here.

The study outlines a number of implications for theory and human resource management.

This study advances research on LH by developing an integrated conceptual framework of how the attributes of the target employee, current employer and potential employer influence how LH is considered, instigated, responded to and accepted. The findings highlight the increasingly important role played by HC in developing sustainable competitive advantage.

This paper aims to examine the influence of supply chain management by assessing the relationship between internal and external integration and small and medium enterprises (SMEs) owners’ Islamic practices in enhancing halal supply chain integrity (HSCI) and SMEs’ performance.

A total of 176 SMEs were surveyed using a self-administered questionnaire. The sample was selected using convenience sampling from two major halal exhibition events in Malaysia. Structural equation modeling (SEM) was used to analyze the data and test the hypotheses.

The findings showed that supply chain integration (SCI), Islamic human capital and HSCI have a significant relationship with SMEs’ performance. It was also found that HSCI mediated the relationship between both SCI and Islamic human capital and SMEs’ performance.

SME owners or managers should be committed to developing the internal processes within the organization and strategizing to link these processes with the external processes to obtain the full benefits of integration. Furthermore, as the upper management, owners and managers must understand the supply chain challenges, priorities and practices thoroughly, as they are responsible for Islamic business ethics. They should work to provide support to increase religious orientation in the SMEs, as this would likely enhance all other factors.

This is one of the few types of research to use HSCI as a mediator in halal food studies in addition to improving SMEs’ performance.

The purpose of this study is to explore the impact that women who sit on boards of directors, as well as women that are part of an interlocking directorate, have on corporate performance. The investigation is placed within the literature on human capital theory and resource dependency as an argument for gender diversity and boards of directors.

A director data set for over 32,000 firms based in the USA, composed of 6,218 women and 54,932 men, is utilized. From this, regression and network analysis were utilized.

It is found that female directors’ participation in interlocking directorates translates into greater corporate performance when compared to simply examining female representation on boards of directors. Additionally, women involved in interlocks translated into greater corporate performance when compared to men. These results support the resource dependency approach.

Results of this study suggest that when considering female directors, corporate performance is enhanced when female directors already sit on the boards of other firms.

This study highlights external network connections to differentiate between human capital theory and resource dependency as an argument for gender diversity and boards of directors.

The purpose of this paper is to examine the interactive effect of human capital in financial development–economic growth nexus. Relative to the quantity-based measure of enrolment rates, the main aim was to determine how quality of human capital proxied by pupil–teacher ratio influences the relationship between domestic financial sector development and overall economic growth.

Data are obtained from the World Development Indicators of the World Bank for 29 sub-Saharan African (SSA) countries over the period 1980–2014. The analyses were conducted using the system generalised method of moments within the endogenous growth framework while controlling for country-specific and time effects. The author also follows Papke and Wooldridge procedure in examining the long-run estimates of the variables of interest.

The key finding is that, while both human capital and financial development unconditionally promotes growth in both the short and long run, results from the interactive terms suggest that, irrespective of the measure of finance, financial sector development largely spurs growth on the back of quality human capital. This finding is also confirmed by the marginal and net effects where the interactive effect of pupil–teacher ratio and indicators of finance are consistently huge relative to the enrolment. Statistically, the results are robust to model specification.

While it is laudable for SSA countries to increase access to education, it is equally more crucial to increase the supply of teachers at the same time improving on the limited teaching and learning materials. Indeed, there are efforts to develop rather low levels of the financial sector owing to its unconditional growth effects. Beyond the direct benefit of finance, however, higher growth effect of finance is conditioned on the quality level of human capital. The outcome of this study should therefore reignite the recognition of the complementarity role of human capital and finance in economic growth process.

The study makes significant contributions to existing finance–growth literature in so many ways: first, the auhor extend the literature by empirically examining how different measures of human capital shape the finance–economic growth nexus. Through this the author is able to bring a different perspective in the literature highlighting the role of countries’ human capital stock in mediating the impact of financial deepening on economic growth. Second, the author makes a more systematic attempt to evaluate the relative importance of finance and human capital in growth process while controlling for several ancillary variables.

Besides small- and medium-sized enterprises' (SMEs) constraints, there is a lack of critical observations of the human capital model naturally inspiring themselves from within. Therefore this paper exposes the factors of emotional intelligence (EI) that make entrepreneurs gain sustainable competitiveness.

A data of self-administered survey from 397 SMEs in Malaysia was investigated using regression analysis.

The results reveal factors of EI comprised of self-confidence, self-innovation, self-inspiration and self-vision that have significant positive impacts on entrepreneurial performance. Amazingly, EI contributes almost 30% of the success, where self-vision and self-innovation are the robust EI to strengthen and sustain entrepreneurial performance. In contrast, self-confidence and self-inspiration are generic EI of human capital and easy to be applied by rivals.

The study provides a comparative benchmark model for SMEs, managers and entrepreneurs inspiring themselves from within that they can emulate and attain the same success. SMEs can obtain success by investing and culturing EI factors within themselves.

The study provides a comparative benchmark model for SMEs and managers inspiring themselves from within and expands the theory of heterogeneous SMEs and the human capital to sustainable business and competitiveness. SMEs can obtain success through capitalizing human capital attributes within themselves.

The study is the first providing the viable model for SMEs or entrepreneurs leading themselves from within, to their action, behaviour, decision and achievement or the performance mechanism with a benchmark model of entrepreneur EI as a booster.