The Complex Resource-Based View: Implications for Theory and Practice in Strategic

Human Resource Management

Author(s): Barry A. Colbert
Source: The Academy of Management Review , Jul., 2004, Vol. 29, No. 3 (Jul., 2004), pp.
341-358
Published by: Academy of Management

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? Academy o? Management Review
2004, Vol. 29, No. 3, 341-358.

THE COMPLEX RESOURCE-BASED VIEW:

IMPLICATIONS FOR THEORY AND
PRACTICE IN STRATEGIC HUMAN
RESOURCE MANAGEMENT
BARRY A. COLBERT
York University

I consider the implications for research and practice in strategic human resource
management (SHRM) of a complex, living-systems extension of the resource-based
view (RBV). I do so by demonstrating that concepts from complexity align well with the
RBV, and I extend the RBV by considering critical but difficult aspects commonly
identified in the RBV strategy literature. An integrated framework for SHRM is pre
sented, allowing an application of complexity principles at the appropriate level of
abstraction in the HR system.

Much of the writing in the field of SHRM has been mentation. Second is the belief that a firm's HRM
concerned with either practical advice or presen
practices are instrumental in developing the
tation of empirical data. Without good theory, the
field of SHRM could be characterized as a pleth strategic capability of its pool of human re
ora of statements regarding empirical relation sources. A stronger theoretical foundation will
ships and/or prescriptions for practice that fail to help to affirm the first assertion, connect it to the
explain why these relationships exist or should second, and improve the focus and effectiveness
exist. If, in fact, the criticism that the field of
SHRM lacks a strong theoretical foundation is of HRM research and practice, and it will help
true, then this could undermine the ability of both organizations to thrive more effectively in their
practitioners and researchers to fully use human particular operating contexts.
resources in support of firm strategy (Wright & The basic precepts of SHRM have a natural
McMahan, 1992: 297).
affinity with the resource-based view (RBV) of
Made over a decade ago, this call for theory in competitive advantage in the strategy field (Bar
strategic human resource management (SHRM) ney, 1991; Grant, 1991; Wernerfelt, 1984). Propo
continues to ring through the literature in the nents of the RBV argue that sustained competi
field (Delery, 1998; Snell, Youndt, & Wright, 1996; tive advantage can originate in a firm's resource
Ulrich, 1997a). Rich, integrated theoretical base, and thereby draw attention to the internal
frameworks will help focus and organize re workings of an organization. This view places
search efforts and will enable the practice of HR more emphasis on the role of managers in the
management to become a truly strategic disci selection, development, combination, and de
pline (Ulrich, 1997b). SHRM is predicated on two ployment of a firm's resources, and not merely
fundamental assertions. First is the idea that an on selecting its competitive position in the oper
organization's human resources are of critical ating environment.
strategic importance?that the skills, behaviors, The RBV has formed an integrating ground or
and interactions of employees have the poten "backdrop" for most of the work in SHRM over
tial to provide both the foundation for strategy the past decade (Delery, 1998; Wright, Dunford, &
formulation and the means for strategy imple Snell, 2001). While the RBV has been helpful and
relevant to the field of SHRM, there are aspects
of the view that scholars have deemed critical
I thank Elizabeth Kurucz and Ellen Auster for helpful but that are difficult to deal with in research and
comments on earlier drafts of this paper, and Brenda Zim practice. This paper extends the RBV by consid
merman for her many insights on complexity. Funding sup
ering some of its difficult aspects through the
port for the writing of this article came from the Social
Sciences and Humanities Research Council's Initiative in lens of complexity (Kauffman, 1992; Kelly, 1994).
the New Economy. Thanks to Albert Cannella and three AMR Complexity as a research field includes the
reviewers for helping to shape and improve the manuscript. study of complex adaptive systems, in the many
341

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 342 Academy of Management Review July

forms in which they appear: economies, ecosys The paper proceeds as follows. First is an
tems, thermodynamical systems, or computer overview of the key questions in SHRM, includ
generated genetic algorithms, for example. The ing the role of the RBV as an integrating ground
defining characteristics of such systems are that for HRM research. I then present a framework to
they are composed of large numbers of agents in describe the general shape of existing research
linear and nonlinear relationships, and they ex in SHRM and the potential opportunities for ex
hibit emergent properties and order. tending the conceptual range of the field. Some
My purpose in this paper is to consider the critical but difficult aspects of the RBV are out
implications for research and practice in SHRM lined to demonstrate consonance with a com
of a complex, living-systems extension of the plexity view in order to make a case for apply
RBV. I do so by demonstrating that concepts ing complexity to SHRM. After this, I describe
from complexity align well with many of the some key features of complexity and use living
critical but difficult aspects of the RBV. Several systems principles from complexity to inform
of these difficult aspects, such as causal ambi the principles level of the HR system architec
guity, social complexity, and system-level re ture. The paper closes with some ideas for future
sources, explicitly invite a more complex, less research.
reductive view of organizations. This is useful
for two reasons. First, it allows us to reframe the
APPLIED DOMAIN: SHRM
RBV in a way that admits some of its more im
portant strategic aspects. Second, it sets the In this section I outline some of the key ques
ground for the integration of a complexity view tions in SHRM against the integrating ground of
into the major modes of theorizing in SHRM. I the RBV in strategy. I then draw together two
present an integrated framework for SHRM that concepts put forward independently in SHRM?
allows an application of complexity principles specifically, the ideas of modes of theorizing in
at the appropriate level of abstraction in the HR HRM research and the levels of abstraction in
system. the HR system addressed by researchers. Inte
gration of these two concepts will set the ground
ESSENTIAL CONTRIBUTIONS OF THE PAPER for extending both the RBV and SHRM research
via complexity.
Wright et al. (2001) point out that the RBV has
played a key role in legitimating the relevance
Key Questions in SHRM
of HRM to strategy research. By extending the
RBV via a complexity lens, this article offers two Research on the contribution of human re
conclusions that are relevant to SHRM. First, it sources (people) and HRM (practices) to organi
suggests that some of the difficult aspects of zational effectiveness has addressed a wide ar
RBV/SHRM research are made difficult by the ray of questions: What is the effect of HR
way we approach them. Causal ambiguity, for practices on the development of a firm's human
example, is only problematic when we endeavor resources? Which HR practices lead to greater
to disentangle the complex causal interactions organizational performance? To what degree
in an organization's social system. If we accept does that depend on firm strategy? How does a
that unpredictability and emergent properties firm ensure that its HR practices "fit" with its
are key features of complex systems, our focus strategy? How does it ensure that its individual
shifts away from testing the effects of discrete HR practices fit with one another, or does fit
HR practices (e.g., recruitment tactics, pay even matter in HR practice? Must the attributes
schemes) and toward consideration of processes of a firm's base of human resources always
by which the elements of the social system (e.g., align with an a priori strategy, or can its stock of
the intentions, choices, and actions of people in skills, knowledge, and interactions drive strate
the system) mingle and interact. Second, this gic direction?
paper opens a potential avenue of research in The key constructs and central debates in SHRM
SHRM through a focus on the HR system as a have grown out of the above questions: best prac
coherent whole, with managerial leverage tices versus fit (Becker & Gerhart, 1996), horizontal
points centered mainly at the HR principles and vertical fit (Sch?ler & Jackson, 1987), fit versus
level of the HR architecture. flexibility (Wright & Snell, 1998), control-exerting

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 2004 Colbert 343

versus creativity-enhancing aspects of HR sys employees?or organizational resources?control

tems (Snell et al., 1996), univariate and multivari systems, routines, and learning mechanisms?
ate effects (Doty, Glick, & Huber, 1993), and appro that are products of complex social structures
priate theoretical frames (Delery, 1998; Delery & built over time and, thus, are difficult to under
Doty, 1996; Lepak & Snell, 1999; Wright & McMa stand and imitate (Amit & Schoemaker, 1993; Bar
han, 1992). What is common to all of this work is a ney, 1991,1992; Conner, 1991; Mahoney & Pandian,
focus on the links among HR practices, the human 1992; Oliver, 1997; Peteraf, 1993). The strong and
resource pool, and organizational outcomes. At its obvious connection to the RBV serves the SHRM
heart, the key strategic questions for HRM re field in two ways: (1) it foregrounds the role of
search and HR practice are process questions, human resources in questions of strategy, raising
which tie practices to resource characteristics to the importance of research and practice in SHRM,
organizational outcomes: and (2) it encourages a more relevant focus for
HRM, away from the HR practices themselves and
How does a firm ensure resources are toward their effect on firm resources (Delery, 1998;
aligned to support current strategies, are Wright et al., 2001).
adaptable to new strategies, and are able to
influence new strategic directions?
Following an examination of two theoretical
How does a firm actively build and contin frameworks in SHRM, I highlight particular as
uously renew strategic human and organi pects of the RBV that suggest complexity con
zational resources to fuel competitive ad cepts could help in reframing some difficulties
vantage? with the approach.

The RBV: An Integrating Ground for SHRM Dimensions for Theory in SHRM
These essential questions have been exam The framework constructed here draws together
ined using a variety of perspectives drawn from two useful concepts presented in the SHRM liter
organization theory, including institutional the ature. The first is the idea of implicit modes of
ory (Wright & McMahan, 1992), contingency the theorizing embedded in the SHRM field. Delery
ory (Lengnick-Hall & Lengnick-Hall, 1988), con and Doty (1996) have identified three modes?
figurational approaches (Doty et al., 1993), universalistic, contingency, and configurational?
transaction cost analysis (Jones, 1984), behav discernible across a broad body of research, al
ioral perspectives (Sch?ler & Jackson, 1987), and though not always explicitly acknowledged by the
organizational learning (Snell et al., 1996). Some respective authors. The second concept is one of
of these approaches are used centrally and fre the levels of abstraction in the HR system, includ
quently and others more tangentially and infre ing principles, policies, and practices, over which
quently. The most prevalent perspective, often theoretical constructs are often arrayed, also typ
applied in conjunction with other frameworks, is ically unacknowledged by the respective authors
the RBV of the firm (Barney, 1991, 1992; Barney & (Becker & Gerhart, 1996; Sch?ler, 1987; Wright,
Wright, 1998; Lado & Wilson, 1994; Snell et al, 1998). By bringing these two concepts together
1996; Wright, McMahan, & McWilliams, 1994). against the backdrop of the RBV, we can identify
The RBV has helped to build a productive theo the room for contribution of ideas from complexity.
retical bridge between the fields of strategy and It should be noted at the outset that this frame
HRM (Wright et al., 2001), and it serves as a work is most useful in delineating the general
backdrop (Delery, 1998) or integrating ground contours of the research in the field and identify
against which much of SHRM theory and re ing opportunities for advancement; I do not assert
search is presented. that every piece of research fits uniquely into one
The RBV states that a firm develops competitive cell or another of framework.
advantage by not only acquiring but also devel
oping, combining, and effectively deploying its
Modes of Theorizing in HR Research
physical, human, and organizational resources in
ways that add unique value and are difficult for Delery and Doty (1996) have identified and
competitors to imitate (Barney, 1991). Most re contrasted universalistic, contingency, and con
source-based arguments are rooted in human re figurational explanations of the effect of HR
sources?the skills, knowledge, and behavior of practices on organizational performance, with a

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 344 Academy of Management Review July

slightly varying definition of "strategic HR prac that are universally adopted would have iso
tices" under each. The main differentiating morphic rather than differentiating effects on
characteristic across these categories is the competing firms. As such, the organization the
level of system complexity assumed by the re ory that best frames the best-practice approach
searcher and the capacity of various research is institutional theory (Baum, 1996; DiMaggio &
approaches for modeling system complexity. Powell, 1983), which describes forces leading to
Universalistic approaches pay little attention to a tendency to "sameness" across firms.
interaction effects among organizational vari Contingency perspective. The contingency
ables, a contingency perspective begins to al perspective goes beyond the simple, linear,
low for such effects, and the configurational causal relationships explored in universal the
school sees system interaction effects as criti ories and allows for interaction effects and vary
cally important. ing relationships depending on the presence of
Universalistic perspective. Universalistic or a contingent variable?most often firm strategy.
"best-practice" approaches assert that certain The task of the researcher is to select a theory of
independent-dependent variable relationships firm strategy and then specify how individual
hold across whole populations of organiza HR practices will interact with that strategy to
tions?that is, some HR practices are always result in higher organizational performance
better than others, and all organizations should (e.g., see Fombrun, Tichy, & DeVanna, 1984, and
adopt them (Miles & Snow, 1984; Pfeffer, 1994). Sch?ler & Jackson, 1987). Effectiveness of HR
Under a universalistic approach, "strategic HR practices is contingent on how well they mesh
practices" are those that are found to consis with other aspects of the organization (e.g., what
tently lead to higher organizational perfor discrete HR policies would be most appropriate
mance, independent of an organization's strat if an organization were to pursue a low-cost
egy. Examples are such practices as formal strategy or wanted to encourage new product
training systems, profit sharing, voice mecha innovation). A contingency perspective draws a
nisms, and job definition. One might argue that causal line from the HR policies and practices to
these are not strategic in the sense used else the organizational performance metrics, and it
where in the SHRM literature (i.e., contingent on allows for the moderating effects of strategy.
strategy or explicitly aligned with specific strat The primary concern is with vertical fit (align
egy) and may simply be termed prudent, in the ment with strategy) rather than horizontal fit (HR
sense that they have been shown to consistently practices hanging together as a coherent, self
enable a given firm to perform better than it reinforcing system). While this mode directs at
might otherwise. tention toward effects among variables, internal
Work in the universalistic perspective is system interaction effects are not a central
largely unconcerned with interaction effects concern.
among organizational variables and implicitly Configurational perspective. The configu
assumes that the effects of HR variables are tional school in organization studies follow
additive (e.g., Gerhart & Milkovich, 1990). Such a holistic principle of inquiry and is concern
reductive, linear view of an organizational sys with how patterns of multiple interdepende
tem ignores the notion of system-level resourc variables relate to a given dependent varia
es?an important factor in the RBV. That is not to (Meyer, Tsui, & Hinings, 1993; Miller & Friese
say that the insights provided by such ap 1984). Researchers gather multiple dimensio
proaches are not valuable; rather, they are only of organizations, such as strategies, structure
limited. Delery and Doty (1996) found strong em cultures, and processes, into typologies of ide
pirical support for the universalistic perspective types and treat the types as independent v
for some of their hypothesized variables. ables. This goes beyond the contingency
Research under this perspective has been proach, in which "researchers have been pre
useful in identifying discrete HR practices that cupied with abstracting a limited set
are universally sensible, but it has not contrib structural concepts?centralization and form
uted much to HRM in the strategic sense, if we ization, for example?and measuring their r
take strategic to mean practices that differenti tionships with a limited set of abstracted situ
ate the firm in its industry and that lead to tional concepts, such as size, and technologi
sustainable competitive advantage. Practices uncertainty" (Meyer et al., 1993:1175). A config

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 2004 Colbert 345

tional view focuses on patterns of HR practices management, incentive pay, comprehensive

that together form an internally consistent communication processes, or suggestion sys
whole (i.e., their effects are mutually reinforcing) tems. Once the appropriate policies are se
and draws a correlation between those patterns lected, the firm chooses from the available array
and organizational performance (Doty & Glick, of HR practices, or specific tools, to execute the
1994). policies. Quality circles or TQM teams; variable
The purported advantage of the configuration compensation schemes, profit sharing, or piece
al perspective is that it acknowledges system work (all types of incentive pay); newsletters,
interaction effects?that the whole may be more learning fairs, or town hall meetings to commu
or less than the sum of its parts. One significant nicate?all are HR practices the firm can imple
shortcoming is that it is typically unmanage ment and align with the policy level and guid
able to construct and test more than a few con ing principle in this example.
figurations, which understates the real-world The product is the metric that describes be
complexity of organizational systems. havior, or the effect of the behavior, induced by
the practices. Behavior in this case might be
assessed by the general level of cooperation,
Levels of Abstraction in the HR System
participation levels in problem-solving exer
Becker and Gerhart (1996) have argued for cises, or demonstration of business knowledge
clarity on the level of policy under examina by employees; the effects of the behavior could
tion?HR principles, HR policies, or HR practices, be measured by the number of problems solved,
for instance?and proposed that an architec productivity, waste, or compensation payouts
tural approach be taken to understand the ef resulting from corporate performance. The menu
fects of HR system components on organization of new practices available to a given firm de
level outcomes. Wright (1998) termed this pends on its unique context and history; the
distinction the level of abstraction at which HR existing practices, management style, and the
is conceptualized and added the product level to labor relations climate are factors that will
capture the intended effects of the other three, likely expand or constrict the list of options. If,
usually in terms of the behavior of individuals, for example, an organization had an antagonis
groups, or the organization. The notion of levels tic relationship with its workforce, built over a
of abstraction differs from the notion of levels of long history of tough bargaining with the union,
analysis in organization studies, although both it is unlikely that the firm could successfully
are grounds for caution and care by researchers. implement cooperative problem-solving teams,
Where the latter normally denotes the structural at least not without first taking steps to repair
level of a theoretical construct, such as individ the organizational climate. Considerations of
ual, group, organization, or industry (Rousseau, unique firm contexts and path dependence are
1985), the former is concerned with the level of critical features of the RBV.
thought abstraction under consideration and the
associated construct definitions. Becker and
Levels of Abstraction and Modes of Theorizing:
Gerhart (1996) suggest that perhaps the mixed
Limitations and Opportunities
and conflicting results in HRM research are at
tributable to confusion in construct definition The framework offered in this article draws
across the levels of abstraction. together the concepts of levels of abstraction
An illustrative example makes this concept and modes of theorizing in order to consider the
clear. A firm might adopt the guiding HR princi typical levels addressed by each mode and to
ple that "employee participation in all aspects identify opportunities for extending these ideas.
of the business is critical to our success." In an The universalistic approach is primarily con
architectural approach, this principle would cerned with individual practices and, thus, is
serve as a guidepost to align lower, less ab most often focused on the level of HR practices,
stract policies and practices. The next level with little consideration of system interaction
holds the various HR policy alternatives capa effects.
ble of enacting the guiding principles, which in Contingency research deals with multiple
this example might be team-based work sys practices and their "vertical" interaction effects
tems, problem-solving mechanisms, open book with contingent variables and, thus, is implicitly

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 346 Academy of Management Review July

concerned with HR policies and the related the issues of fit in SHRM, Delery notes that
practices. Interaction effects are deemed impor "while the resource based view provides a nice
tant, but only one or two variables are consid backdrop, explaining the importance of human
ered at once, and, typically, the contingent vari resources to firm competitiveness, it does not
able is limited to firm strategy. specifically deal with how an organization can
Configurational approaches emphasize the develop and support the human resources it
importance of overall system interactions and needs for competitive advantage" (1998: 290).
effects and, thus, include the HR principles level This is due, in large measure, to the somewhat
as a critical cohesive force for the overall sys paradoxical internal logic of the RBV, at least as
tem. The limiting facet of the configurational it has been framed to date: the strategic value of
approach is that complex organizational sys firm resources lies in their inherent complexity,
tems are reduced to a few possible configura and attempts to causally unravel that complex
tions for the sake of manageability and are cast ity are counterproductive, if not futile. In a re
as typologies. For example, Miles and Snow's cent review of the contribution of the RBV to
(1978) theory of strategy, structure, and process SHRM research, Wright et al. concluded that tak
has been used to cast and test organizational ing RBV deeper into SHRM research "requires
types (prospector, analyzer, defender) and re recognizing that the inimitability of [organiza
lated sets of HR practices (Delery & Doty, 1996). tional] competencies may stem from unobserv
Limiting the rich complexity of organizations to ability (e.g., causal ambiguity), complexity (e.g.,
a few possible configurations constrains the social complexity), and/or time compression di
range of possible combinations and interaction seconomies (e.g., path dependence)" (2001: 709).
effects and understates both the creative and The challenge to researchers and managers is
adaptive potential of a complex system. While to find a level of prescription that preserves the
configurational approaches come closest to strategic value of the RBV without compromis
modeling the complexity of organizations, they ing its essence.
must stop short for analytical manageability. Throughout the large body of scholarly writ
These two concepts in SHRM?modes of theo ing in the RBV?in strategy and with specific
rizing and levels of abstraction?form a useful respect to SHRM?there have been a few key
framework for considering future opportunities aspects widely acknowledged to be both criti
in SHRM research. In particular, they help to cally important and exceedingly difficult to ad
highlight the difficulty of acknowledging and equately represent. I identify four aspects here:
dealing with (rather than artificially reducing) (1) a focus on the creative as well as the adap
system complexity in SHRM, as well as high tive aspects of the RBV; (2) the centrality of com
light the idea of separating the principles level plexity and causal ambiguity to its logic; (3) the
of the HR system from the focus on discrete prac importance of disequilibrium, dynamism, and
tices as a means of accessing issues of dynamic path dependence: and (4) the idea of system
complexity. To relate ideas from the field of com level characteristics. It is with these four critical
plexity to SHRM, it is helpful to first consider but difficult aspects of the RBV, generally and as
some of the opportunities for extension of the applied to SHRM, that concepts from complexity
RBV in strategy, especially since the RBV is cen best align. In the following sections I briefly
tral to and has been called a backdrop of SHRM elaborate on each of these aspects to set the
research. ground for integrating ideas from the study of
complex systems.
Focus on creativity and adaptivity. The stra
Opportunities for Extending the RBV and
SHRM tegic nature of HRM has often been character
ized in the SHRM literature as an adaptive con
While the RBV has focused attention on organ cept in terms of fit or flexibility (Wright,
izational resources and has served as an inte McMahan, McCormick, & Sherman, 1998; Wright
grating ground for research and theory, its main & Snell, 1998): firms have an a priori strategy, or
limitations are serious for the field: it offers lit chosen market position, and the main chal
tle, in an explicit sense, in the way of prescrip lenges lie in strategy implementation. But lim
tions for managers, thus not answering the iting the discussion to adaptive concepts limits
"how" questions central to SHRM. In assessing the range and power of the RBV as originally

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 2004 Colbert 347

articulated by Penrose, who was interested in stood only retrospectively?ex ante irreduc
the process of firm growth and its relation to ible/ex post reducible causal ambiguity (Mosa
sustained advantage. She proposed that kowski, 1997). Although both of these types serve
the availability of unused productive services to protect against competitors' discerning and
within it create the productive opportunity of a "reverse engineering" an organization's strate
given firm. Unused productive services are, for gic resources, the former does so more than the
the enterprising firm, at the same time a chal latter. This feature of the RBV has been difficult
lenge to innovate, an incentive to expand, and a to operationalize, however, because under fun
source of competitive advantage (1959: 85).
damentally irreducible causal ambiguity, even
Thus, in its original conception, the RBV held the firm possessing the advantage must be un
that a firm's resource base contains not only certain of its source, or else diffusion to compet
adaptive potential but also creative potential. itors will result (Lippman & Rumelt, 1982). This
The "unused productive services," which in prime criticism of the RBV?that is, that it is
SHRM terms means the knowledge, skill, and tautological (Priem & Butler, 2001)?is related to
behavioral dynamics of individuals and groups, its ex ante irreducibility.
are forces for creativity, innovation, growth, and Ambiguity arises from complexity as a by
relative industry advantage. To be of strategic product of the complex nature of organizational
value, HRM practices should be focused on interaction. It comes from technical complexity
building and leveraging both creative and and, more significant, from social complexity in
adaptive sources of competitive advantage: the the way that a firm's inputs?physical, human,
latent creative potential in the organization's and organizational?are combined (Barney,
human resource pool and the idiosyncratic ca 1991). Social complexity as a source of ambigu
pabilities that serve to realize that potential and ity, and therefore competitive advantage, is a
that help the organization adapt to and thrive in common theme throughout the RBV literature
its operating environment. (Barney, 1986; Grant, 1991; Nelson & Winter, 1982;
There have been relatively few attempts to Reed & DeFillippi, 1990; Schoemaker, 1990;
explore the creative aspect of the RBV in SHRM. Wright et al., 1994). While the socially complex
Snell et al. did explore the processes of knowl phenomena that give rise to ambiguity do
edge creation through organizational learning change over time, deliberately orchestrating
processes and urged emphasis on creativity those changes is often beyond management
over control in SHRM research: control (Barney, 1992). Still, scholars in SHRM
In the context of achieving sustained competitive
have pointed specifically to the advantages in
advantage, we need less research on the control herent in organizational complexity and to the
attributes of SHRM and more research on how distributed nature of the source of advantage:
participative systems can increase the potential
It is difficult to grasp the precise mechanisms by
value of and impact of employees on firm perfor
mance. If human capital is valuable, we have to which the interplay of human resource practices
learn how to unleash that value (1996: 65). and policies generates value. To imitate a com
plex system, it is necessary to understand how
the elements interact. Are the effects additive or
Holding the RBV as an explicit frame suggests
multiplicative, or do they involve complex nonlin
that the HR system can help create advantage earities?... It is even difficult for a competing
by recruiting, developing, and leveraging both firm to imitate a valuable HR system by hiring
creative and adaptive sources of competitive away one or a few top executives because the
advantage. understanding of the system is an organizational
Centrality of complexity and causal ambigu capability that is spread across many (not just a
few) people in the firm (Becker & Gerhart, 1996:
ity. Under the RBV, inimitable competitive ad 787).
vantage is protected by the interrelated condi
tions of causal ambiguity and complexity. Constructive, socially embedded resources
Causal ambiguity is the basic uncertainty sur are highly strategically important (in the sense
rounding the causal relationship between ac that they are inscrutable to competitors) be
tions and results (Lippman & Rumelt, 1982; Reed cause of their inherent complexity, but they are
& DeFillippi, 1990). Such uncertainty may be ir difficult to deliberately build for precisely the
reducible ex ante and ex post?fundamentally same reason. The question for managers is how
irreducible causal ambiguity?or may be under to act within that complexity so that the organi

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 348 Academy of Management Review July

zation is encouraged to thrive, without having to learned, such as task frequency, homogeneity,
unravel and codify the myriad causal effects at and causal ambiguity (Zoilo & Winter, 2002).
play in the social dynamic of the firm. The dynamic capabilities view is useful in
Importance of disequilibrium, dynamism, and making the RBV operational by identifying spe
path dependence. Rather than attempt to reduce cific organizational processes that build clearly
and unbundle complex resources and capabili identifiable valuable resources (Eisenhardt &
ties in an effort to manage and control, manage Martin, 2000). While it has potential to contribute
ment's task under the RBV is to create uncertain to SHRM research, the dynamic capabilities
ty?to "continually reinvest in the factors that view has not, to date, been conceived to allow
create the ambiguity and barriers to imitation" for complex system interaction effects, and is
for competitors (Reed & DeFillippi, 1990: 97). therefore more limited than the focus of this
Strategy is a continuous competitive interaction, article. An overly reductive approach to exam
in which models should be built on ideas of ining system dynamics (i.e., attempting to re
disequilibria rather than static efficiency (Reed duce what is inherently not reducible) ignores
& DeFillippi, 1990). Similarly, Amit and Schoe the notion that irreducible system complexity
maker have argued that, for strategy to be con and the resultant ambiguity are key to the RBV
ceived more dynamically, "disequilibrium and argument. Beyond this paper, there is opportu
process dynamics loom primary" (1993: 42). nity to apply a dynamic capabilities approach
Growth and rent creation are driven by cre using the insights offered here?an issue I dis
cuss in the conclusion.
ative disequilibrium at both the firm and indus
try levels. Early explications of the RBV included Idea of system-level characteristics. Through
out the RBV strategy literature, there is reference
dynamic factors in their static descriptions of
to the importance of system-level, intangible re
resource characteristics. "Historical depen
dence," "rate of decay," "embedded" in complex sources. Such resources have been variously
conceived as "organizational routines" (Grant,
ity over time?are all dynamic concepts refer
1991; Nelson & Winter, 1982), "cultural resources"
encing the processes by which strategic resources
(Wernerfelt, 1989), "core competencies" (Pra
emerge, are created, or are destroyed (Barney,
1991; Grant, 1991). Dierickx and Cool (1989) focused
halad & Hamel, 1990), "organizational capabili
ties" (Barney, 1992; Collis, 1994; Lado & Wilson,
particular attention on the process of accumulat
1994; Ulrich & Lake, 1991), and "system-level re
ing strategic assets with their concept of the "time
sources" (Black & Boal, 1994). System-level re
compression diseconomies" faced by imitators.
sources are those organizational capabilities
Some strategic assets?reputation, for example? that exist only in relationships?in the interac
cannot be bought on the factor markets but must
be accrued over time.
tions between things. In conceptual and empir
ical work, researchers have described the im
Recently, attempts have been made to identify portance of the relationships between and
and examine the effects of dynamic capabilities. among resources that display "cogency,"
Dynamic capabilities are the organizational "complementarity," or "cospecialization" or that
and strategic processes through which manag generate rents at the system level or organiza
ers convert resources into new productive assets tion level (Amit & Schoemaker, 1993; Barnard,
in the context of changing markets (Galunic & 1938; Black & Boal, 1994; Brumagim, 1994; Collis,
Eisenhardt, 2001). Researchers have made sev 1994; Grant, 1991; Teece, 1986). Since such re
eral efforts to identify and prescribe dynamic sources are system specific (and therefore firm
capabilities in theoretical terms (Luo, 2000; specific, if the firm is the system under consid
Teece, Pisano, & Shuen, 1997), through empirical eration), they are arguably the most "imperfectly
studies (Griffith & Harvey, 2001; Helfat, 1997, mobile" type of resources within a given firm.
2000; Rindova & Kotha, 2001), and through histor Imperfect mobility is key to sustaining economic
ical studies of response to technological change rent, and one of the "cornerstones of competitive
(Rosenbloom, 2000). Scholars have explored the advantage" identified by Peteraf (1993).
factors contributing to the development of dy A few writers in SHRM have focused on the
namic capabilities and have found that the ef importance of system-level resources?those or
fectiveness of capability-building mechanisms ganizational qualities that only exist in relation
is contingent on features of the task to be ship, rather than as self-contained, discrete en

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 2004 Colbert 349

tities. For instance, Brass (1995) took a social (Holland, 1975; Langton, 1989; Zimmerman, Lind
network perspective of HRM and focused not on berg, & Plsek, 1998).
the attributes of discrete human resources but Each word in the phrase "complex adaptive
on the benefit accruing from the relationships system" is significant (Waldrop, 1992). Complex
among them. Similarly, Snell (1999) reflected on means more than just "complicated"; it de
the concept of human capital, regarding human scribes a system in which the component agents
resources from an investment and capital accu operate with some measure of autonomy, as
mulation perspective, and allowed that there well as in relation to other system components?
may be new insight found in the concept of that is, independently and interdependently.
social capital, which focuses on the value of That interaction gives rise to emergent proper
relationships. However, less attention has been ties that are irreducible?that exist only in rela
paid to this idea in SHRM than in the broader tionship. (As Cilliers [1998] has noted, an airliner
RBV strategy literature. is merely complicated: a mayonnaise is com
With a focus on these aspects of the RBV and plex. He describes these as "relational proper
SHRM that are ripe for extension?a focus on the ties" to avoid the mystical qualities associated
creative as well as the adaptive; the centrality of with "emergence.") Adaptive means that each
complexity and causal ambiguity; the impor agent, as well as the collective system, actively
tance of disequilibrium, dynamism, and path responds to whatever pushes it and works to
dependence; and the idea of system-level char turn events to its advantage and survival. Sys
acteristics?we can consider ideas offered from tem implies dynamism?an "alive" kind of dy
the field of complexity. namism that arises from the many linear and
nonlinear (i.e., with amplifying and dampening
interaction effects) interrelationships among
COMPLEXITY AS AN EXTENSION OF THE RBV system agents. Because of this adaptive, unpre
dictable dynamism, CAS have also been termed
These four critical but difficult aspects of the
living systems by some writers in the field (Ca
RBV are, in fact, central features of complex sys
pra, 1996; Holland, 1995; Kelly, 1994).
tems. This theoretical congruence between com
In general terms, a CAS is composed of
plexity and the RBV (and, by extension, SHRM)
suggests that transferring ideas from one do a large number of agents, each of which behaves
main to the other via abstract analogical rea according to its own principles of local interac
tion. No individual agent, or group of agents, de
soning is not only legitimate but implicitly termines the patterns of behavior that the system
called for within the RBV literature. In this sec as a whole displays, or how those patterns
tion I present key features of complexity as they evolve, and neither does anything outside the
align with those of the RBV. I close the article system (Stacey, Griffin, & Shaw, 2000: 106).
with principles from the field of complexity Difficult to concisely define, but easy to recog
aimed at nurturing living systems and thoughts nize (like organizations), complex systems are
on how those principles might be integrated generally characterized by these two features:
usefully into the HR system architecture. (1) a large number of interacting agents and (2)
the presence of stable, observable emergent
properties?the appearance of patterns due to
Key Features of Complex Systems the collective behavior of the components of
There is no one unified theory of complexity. the system (Morel & Ramanujam, 1999). Order
Complexity theory generally denotes a wide emerges as the system under observation
ranging body of work built on such fields as evolves and adapts with its contextual environ
chaos theory (Gleick, 1987; Lorenz, 1963), cyber ment, although system boundaries are always
netics (Ashby, 1956; Weiner, 1948), and dynamic somewhat arbitrarily drawn. Characteristics of
systems theory (Jantsch, 1980; Kauffman, 1992; CAS are recognizable across diverse domains,
Prigogine & Stengers, 1984). Complexity science including ecologies, brains, ant colonies, politi
includes, but is not limited to, the study of com cal parties, economies, and corporations (Hol
plex adaptive systems (CAS)?systems char land, 1995). Such living systems
acterized by networks of relationships that are integrated wholes whose properties cannot
are independent, interdependent, and layered be reduced to those of smaller parts. Their essen

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 350 Academy of Management Review July

tial, or "systemic," properties are properties of the because the "arrow of time" only moves forward
whole, which none of the parts have. They arise
through the evolutionary creative process (Pri
from the "organizing relations" of the parts?that
is, from a configuration of ordered relationships gogene & Stengers, 1984); processes of emer
that is characteristic of that particular class of gence are path dependent.
organisms, or systems. Systemic properties are By definition, emergent properties are unpre
destroyed when a system is dissected into iso dictable (i.e., fundamentally causally ambigu
lated elements (Capra, 1996: 36).
ous), displaying what Goldstein (1999) terms
The key features of complex systems resonate radical novelty, they have features not previ
with the critical but difficult aspects of the RBV ously evident in the complex system under ob
outlined earlier. They are creatively adaptive in servation and that are not able to be anticipated
that they seek novel means to evolve, by random in their full richness before they actually show
mutation, self-organization, transformation of themselves. Emergence is
their internal models of the environment, and the arising of novel and coherent structures, pat
natural selection (Goldstein, 1999). Any attempt terns, and properties during the process of self
to reduce organizational complexity in order to organization in complex systems. Emergent phe
nomena are conceptualized as occurring on the
exert control and adapt to the operating environ macro level, in contrast to the micro level compo
ment (i.e., to act as managers are taught to act) nents and processes out of which they arise
is counterproductive. In complex adaptive sys (Goldstein, 1999: 49).
tems, it is the process of adaptation that builds The notion of "coherent structures, patterns, and
complexity, and from that complexity emerges properties" sounds very much like the intangi
perpetual novelty (Holland, 1995). Such systems ble, system-level resources deemed important
reach their creative state at far-from-equilib by RBV writers.
rium conditions, be they economies (Arthur, Table 1 arrays the critical but difficult features
1990), Boolean (binary) networks of lightbulbs of the RBV (call it "complex RBV") alongside some
wired together that move to stable order based of the key features of complex systems. This sim
on localized blinking rules (Kauffman, 1995), or ilarity suggests that concepts from the study of
dissipative structures in thermodynamics that complex living systems are well poised to inform
build up as energy moves through the system, in
and extend the RBV and, by extension, SHRM.
defiance of the second law of thermodynamics
(Prigogene & Stengers, 1984). A CAS never
Complex RBV: Heuristics for Building System
reaches equilibrium; if it is not creating to Level Resources
adapt, it is dead (Holland, 1995). As complex
adaptive systems evolve through time, they do Proponents of the RBV say that competitive
so irreversibly. Their steps cannot be retraced, advantage flows from latent creative potential

TABLE 1
Complex RBV: Critical but Difficult Features of the RBV and Key Features of Complex Systems

Key Features RBV Complexity

Creativity/adaptivity Competitive advantage grows from latent Complex adaptive systems learn and create
creative potential embedded in firm new responses to their contextual
resources environment
Complexity and ambiguity Living systems are composed of complex
Inimitability arises from social complexity
and causal ambiguity interrelationships that are nonlinear,
nondeterministic, and unpredictable
Disequilibrium, dynamism, Complex relationships build over time
Systemsand
thrive and create at far-from
path dependence equilibrium states; equilibrium leads to
are historically dependent; disequilibrium
is the creative state; dynamism andstagnation, decline, and death; history
process issues are paramount matters; paths unfold irreversibly through
time
System-level resources Some elements only exist at the system level,
Some key strategic resources are intangible
and exist only at the system level, in
inthe dynamic relationships between
relationships things

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 2004 Colbert 351

and idiosyncratic capabilities (synchronous there is a clear point of entry for complexity
with the specific context) and that strategic re principles.
sources must be valuable, rare, inimitable, and Figure 1 illustrates the integrated framework
organizationally leveraged (Barney & Wright, for SHRM described earlier. The modes of theo
1998). Complex RBV focuses on the complex pro rizing, with the addition of the complexity frame,
cesses that build system-level resources over are arrayed against the levels of abstraction.
time. The value of such resources is grounded in The RBV serves well as an integrating ground
their synchronicity with the firm's operating for the various modes of theorizing. Articulated
context; their inimitability is secured because within the RBV are the higher-order (more gen
they are inscrutably embedded in the complex eral, more abstract) objectives of unleashing la
interactions within the organization. Manage tent creative potential and developing idiosyn
ment heuristics drawn from complexity can in cratic capabilities that are common to all
fluence the organizational system toward build modes, and more fully realized as we move from
ing and leveraging strategic resources. The left to right on the spectrum. The ovals in the
notion of self-organization in the complexity figure depict the typical prescriptive range of
frame asks us to think of an organization in a each mode along the levels of abstraction, and
less control-oriented manner and acknowledges they are labeled with the most relevant theory of
that an organization's social system is con organization for each mode.
structed out of the interplay among the inten As we move from left to right across the figure,
tions, choices, and actions of all organizational there is greater concern for the interaction ef
actors (Stacey et al., 2000). fects among system variables and for system
With an appropriate degree of humility (i.e., level characteristics. The complexity perspec
abandoning the objective of control, the most we tive acknowledges that agent interactions are
intend is influence), we acknowledge the forces abundant and critical to system evolution and
for creativity and adaptation inevitably embed that there is a self-organizing aspect to them. In
ded in a complex social system and offer guid the context of the HR system architecture, this
ing principles consonant with that view. This is means that process principles reflecting a com
consistent with the RBV literature, which asserts plexity perspective can be prescribed and that
that management is, at its core, a "heuristic dis the policies, practices, and products will "self
cipline," and calls for the development of useful organize," which can mean that they flow in
heuristics to deal with organizational complex concert with the particular idiosyncratic context
ity (Amit & Schoemaker, 1993; Schoemaker, 1990). of the firm, guided by the heuristics for growing
Heuristics are, according to Chambers Concise CAS. The heuristics as HR principles can help to
Dictionary, "principles used in making deci guide the dialogue processes in the organiza
sions when all possibilities cannot be fully ex tion: the interplay of the intent, choices, and
plored." actions of organizational actors (Stacey et al.,
2000). From a strategic perspective, organization
al resources will be positioned to create maxi
COMPLEXITY APPLIED IN SHRM mum value when we expand the system bound
aries to include the intent, choices, and actions
The purpose of illustrating these points of con of the firm's stakeholder base?customers, sup
gruence is that they strongly suggest there is pliers, shareholders, employees, operating com
something to be learned from a complexity view munities, governments, and competitors, for ex
in order to extend the RBV. The critical but dif ample.
ficult aspects of the RBV in strategy mark an Dynamism and complex interaction among
opportunity to bring in ideas from complexity, system components are issues of organizational
and SHRM, with its natural affinity to the RBV, is process, which is consistent with the initial con
a particularly useful means of operationalizing ception of the RBV. Penrose (1959) was concerned
those insights. Because the framework con with the process of growth?in the ways that
structed in this article is built along the dimen organizations grow?in contrast with economic
sions of the levels of abstraction in the HR sys theory of the time, which only addressed the
tem and degrees of concern for system pros and cons of being one size or another. Pro
interaction effects in the modes of theorizing, cess issues have also been identified as impor

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352 Academy of Management Review July

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 2004 Colbert 353

tant in SHRM, especially in the ways that HR plexity research. The set of seven below is
system fit emerges over time: adapted from the nine offered in his wide-ranging
work:
We would encourage researchers to examine the
processes that lead to internal fit. Like other ele
ments of the organization's infrastructure, creat Distribute being: Allow that systems are not
ing internal fit among HR practices probably has contained in discrete bodies; living systems
an intentional as well as an emergent compo are distributed over a multitude of smaller
nent. Researchers might try to sort out the extent units. All the mysteries we find most interest
to which HR systems are integrated rationally ing?life, intelligence, evolution?are found
through a priori decision processes versus in the soil of large distributed systems.
emerging over time as practices are adjusted in Control from the bottom up: When every
crementally. SHRM, in general, is an area that thing is connected to everything in a distrib
has focused far too exclusively on content issues uted network, wide and fast-moving prob
to the exclusion of more process-oriented con lems route around any central authority.
cerns (Snell et al, 1996: 80). Overall governance must arise from inter
dependent acts done locally in parallel and
The background shading in Figure 1 indicates not from a central command.
the primary range of prescription available un Cultivate increasing returns: Each time you
der each mode of theorizing. Adding a complex use an idea, a language, or a skill, you
strengthen it, reinforce it, and make it more
ity view to the framework extends consideration likely to be used again. That is known as
of the HR system out to a domain where system positive feedback or snowballing. Anything
interaction effects are accepted as critical and that alters its environment to increase pro
allows that the properties and dynamics of the duction of itself is playing the game of in
system are complex, unpredictable, and often creasing returns.
Grow by chunking: Allow complex systems
irreducible to their component parts. Doing so to emerge out of the links among simple
via analogical abstractions will allow us to en systems that work well and are capable of
ter the framework at the appropriate level of operating independently. Attempts to install
abstraction?in this case, the principles level. highly complex organization, without grow
Prescription here is focused on process princi ing it, inevitably lead to failure. Complexity
is created by assembling it incrementally
ples: management heuristics for nurturing com from simple modules that can operate inde
plex living systems. pendently.
Maximize the fringes: A diverse, heteroge
neous entity can adapt to the world in a thou
Abstract Analogical Reasoning: Transferring sand daily minirevolutions, staying in a state
Insights Across Knowledge Domains of permanent but never fatal churning. In eco
nomic, ecological, evolutionary, and institu
Rather than employ one concept or another tional models, a healthy fringe speeds adap
from specific areas of study in complexity (e.g., tation, increases resilience, and is almost
fitness landscapes, cellular automata, nonequi always the source of innovations.
Honor your errors: The process of going out
librium thermodynamics, dissipative structures,
side the usual method, game, or territory is
bifurcation points), we can consider living sys indistinguishable from error. Even the most
tems generally and abstractly?that is, take a brilliant act of human genius is an act of
set of abstract concepts generally observable trial and error. System evolution can be
across complex living systems and transfer them thought of as systematic error management.
to the principles level of the HR architectural Pursue multiple goals:. Survival is a many
pointed goal. A complicated structure has
framework. Tsoukas suggests that such abstrac many masters, and none of them can be
tions are particularly useful for theory building: served exclusively. An adaptive system
From a theory-building point of view, abstrac must trade off between exploiting a known
tions are very important because they operate at path of success (optimizing a current strat
a high level of generality, reveal the generic egy) and diverting energy to exploring new
properties of a variety of phenomena, and can paths (thereby wasting energy and reducing
efficiency).
thus be used to explain phenomena across
widely different domains (1993: 338).
These principles can be directed toward ad
Kelly (1994) put forward a set of abstract prin dressing the "how" questions central to HR re
ciples?a list of "laws" for growing living sys search set out earlier: How does a firm encour
tems, synthesized from diverse streams of com age alignment of resources to strategy, and how

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 354 Academy of Management Review July

does it continually build human and organiza and practices will depend on the historical expe
tional (i.e., system-level) resources to fuel com rience of the organization and the nature and
petitive advantage? As a prescription for man quality of the human relationships within the sys
agers, a complex RBV, living-systems view tem. The third and fourth columns of Table 2 offer
suggests that these principles be integrated into some possibilities of which HR practices might
the HR architecture. come into play, but they are only possibilities.
Table 2 offers an example of how such princi Complex, system-level, path-dependent resources
ples for nurturing living systems might translate and capabilities only emerge out of the dynamic
to HR principles that are oriented toward process, interplay within a given system and with its op
focused on appropriately stirring the stew of cre erating environment; it is beyond our prescriptive
ative forces embedded in the organization's social capacity to list what could, or should, be the par
system?the intentions, choices, and actions at ticular actions of each organization. A complex
play. How these principles translate to HR policies systems view allows for the creation of valuable

TABLE 2
Living-Systems Coherence: Translating Complexity Heuristics to the HR System

Heuristics for Nurturing Possible Translation to HR Possible Translation to HR Possible Effect on HR

Complex Living Systems Principles Policies Processes

Distribute being Eradicate arbitrary borders Encourage movement across Work assignments (postings,
departmental and organiza projects) deliberately cross
tional boundaries functional
Build broad-based identity Explicitly incorporate For example, recruitment,
and capability identity-building values into training, leadership
HR systems development, performance
management processes
Control from the Democratize the workplace Encourage formal and Work structure design with a
bottom up informal employee strong bias to full
participation wherever engagement
possible
Feed information to all Take time to create an Leadership development,
levels understanding of the internal communications
business; coach at all levels
Cultivate increasing Seek opportunities to create Deliberately link reputation, External and internal
returns positive reinforcement in the external image, and internal communication practices
system identity in a virtuous cycle
Be deliberate with language Use and reuse consistent Training?high
and symbols models and language in customization of T&D
development programs programs (vs. outsourcing)
Grow by chunking Encourage local innovation Allow inconsistencies across Flexible interpretation of HR
departments "rules"
Build learning capacity Foster knowledge exchange Learning forums,
across organizational units communities of practice
Maximize the fringes Embrace debate Invite dialogue on alternate Electronic discussion groups
approaches on pros/cons of HR systems
Experiment Create space for HR "skunkworks"?trials of
experimentation new practices/processes
Honor your errors Encourage reflective practice Close learning loop on Reward systems?honor
experimentation "greatest learning
experiences"
Pursue multiple goals Incorporate stakeholder Assess HR system impact on HR measures?build in
perspectives/aspirations all stakeholders stakeholder metrics
Tolerate multiple aims Create value on many fronts Solicit definition of "value"
at once from diverse stakeholders

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 2004 Coiberf 355

resources by encouraging an attitude of inclusive and are not thought out a priori. Investigation into
ness and humility on the part of managers: inclu those processes from a complex RBV perspective
siveness toward all system agents (stakeholders) means focusing qualitatively on the human rela
and humility in that they are encouraged to relin tionships in the system and on the processes of
quish the idea of tight control and focus on build dialogue that lead to transformative change (Sta
ing "generative relationships" (Lane & Maxfield, cey et al, 2000).
1996). Are the modes of theorizing compatible? That
is, can we employ insights from a universalistic
approach while at the same time injecting com
Coherence in the HR System
plexity principles to encourage emergent adap
In reference to Figure 1, there are single, dis tive behavior of the whole system? What spe
crete HR practices that researchers have identi cific sources of advantage do organizational
fied as universally beneficial for organizations members attribute to the complex interactions
to adopt, there are HR practices that make sense encouraged by the HR principles? Is a complex
in relation to particular firm strategies, and ity approach more appropriate for certain strat
there are typological configurations of practices egies, in certain industries? How does a com
that work well together. Moving from configura plexity approach reframe the way we think of
tional approaches to complexity approaches the concepts of "fit" and "flexibility" in SHRM
means loosening the coupling between concep research? Perhaps it asks us to accept that fit
tions of strategic types and full sets of related emerges out of ongoing, decentralized dialogic
HR practices. It means introducing complexity processes, and flexibility means adherence to a
principles at the appropriate level of the HR principles-driven view of the HR system. This
architecture and letting the system follow what might mean a continual, deliberate reinterpre
Daneke (1997) calls its "unique geometries"? tation of HR policies and practices in the context
which is what complex systems will do, despite of the organization, in the way that Holland
managerial efforts at total control. (1995) describes complex systems as constantly
The aim here is not to generate radical new revising and rearranging their building blocks
ideas for HR practices in a discrete sense; each as they gain experience. If the principles guid
of the practices listed in Table 2 is at work in ing the system are drawn from living-systems
some organization today. Rather, the purpose of theory, versus a mechanistic organizational
such a framework is to provide a measure of view, perhaps the prosperity odds are better.
coherence and purpose to the HR system archi One way to approach some of these questions
tecture, informed by complexity. What the over would be to construct some high-level, explor
lapping aspects of the RBV and complexity sug atory hypotheses tying a complexity approach
gest is that a set of principles drawn from the in the HR architecture to perceived strategic re
study of complex, living, thriving systems could sources to organizational outcomes. One could
serve well to nurture the creative and adaptive construct a proposition regarding the signifi
capabilities of the organization. cance of a complexity view, and another per
taining to the degree of institutionalization of
the principles, covering the intention and exe
Implications for SHRM Research
cution of integration. For instance:
The framework offered in this article suggests a
number of interesting research questions. What Complex RBV advantage flows from com
HR principles are most consistent with a complex plexity principles embedded in the HR ar
chitecture.
ity perspective? Some principles are offered here,
Greater institutionalization of complexity
but that list is by no means exhaustive. What principles in the HR system is associated
range of HR policies and associated practices with greater relative industry performance.
flows from complexity-based principles? How do
the dialogic processes in organizations contribute A possible method for exploring these propo
to the development of HR policies and practices, sitions might be to select comparator compa
and what role do HR principles play in moving to nies, who occupy relatively equal strategic
overall system coherence? Snell et al. (1996) ob positions in the same industry, and collect qual
served that some HR practices emerge over time itative data on their respective HR architectural

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 356 Academy of Management Review July

schemes, along with supporting documentation. could include a complex, principles-level view of
Principles may be explicit or implied, depend strategy formulation and of the dynamics of strat
ing on the relative sophistication of the firm's egy implementation. The framework constructed
HR system. The principles in action could be here allows for the introduction of complexity prin
assessed for "complexity content" against the ciples at the appropriate (principles) level of ab
frameworks suggested in this paper to deter straction in the HR system. Pursuing a line of re
mine the relative presence of conditions for search in SHRM that focuses on coherence in the
emergence and adaptive behavior. Qualitative HR system, infused with a living-systems perspec
data from actors inside the firm could be used to tive, could help to inform the way organizations
gather collective perceptions of strategic re are studied and to improve the way they are
sources and their value to firm performance, managed.
their rarity, and conditions contributing to their
inimitability, without trying to analytically
break down causal ambiguity. Quantitative and REFERENCES
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Barry A. Colbert is completing his Ph.D. in strategic management in the E. K. Haub

Program in Business and Sustainability at the Schulich School of Business, following
twenty years of work in the Canadian steel industry. His current research explores
organizational leadership in moving toward more sustainable business practices.

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