Oxford Handbook of Human Resource Management

a long-term orientation (Snell and Dean 1992 ). Such practices are designed to help
Wrms maintain unique knowledge that leads to strategic advantage.

11. 
    
    
    
    2. 2 Compulsory Knowledge (Job-Based Employment)
    
    
    
    

Similar to core knowledge, compulsory knowledge is important for value creation
and strategic advantage. Given strategic value, employment for these individuals
tends to be internalized, provided there is suYcient supply of labor. However,
because this form of human capital is not unique, it is mobile andWrms may suVer
a capital loss if their investments transfer to a competitor. As a result, organizations
tend to de-emphasize development, and the employment relationship tends to
adhere to a more traditional job-based orientation focused on immediate perform-
ance (Lepak and Snell 2002 ). Managers are likely to rely more on a productivity-
based HR conWguration that focuses on standardized jobs and selecting people from
the external labor market who can contribute immediately (cf. Tsui et al. 1995 ).
Incentives for these employees tend to focus on eYciency and productivity through

Alliance partners

(idiosyncratic

kinowledge)

Collaborative

HR

Knowledge

employees

(core knowledge)

Commitment-based

HR

Contract

workers

(ancillary knowledge)

Compliance-based

HR

Job-based

Employees

(compulsory knowledge)

Productivity-based

HR

Internalized

Relational

Transactional

Low

Uniqueness

High

Externalized

Strategic

value

Low High

Fig. 11.1. HR architectural perspective

Source:Adapted from Lepak and Snell, 1999, 2002; Snell et al. 1999.

214 david lepak and scott a. snell