Building dynamic capabilities: the case of HRIS

Abstract

Purpose The purpose of this paper is to investigate conditions for a human resource information system (HRIS) to impact organizational competitiveness. Particularly, the author proposes that an HRIS is a key factor in building dynamic capabilities through fostering codification and dissemination of path‐dependent processes and assuring that the firm is able to repeat its successes. Design/methodology/approach Drawing on the resource‐based view (and its extension), the author theorizes about the relationship between HRIS specificity and firm competitiveness. Findings It is proposed that in‐house developed or highly‐customized HRIS are the key to building dynamic capabilities necessary for firm competitiveness. Research limitations/implications By considering the HRIS as a vehicle for the unique and inimitable organizational processes, the author extends the traditional definition of management information systems. However, such an extension is doable within certain limitations. First, the assumption must be maintained that an HRIS can reflect unique routines and processes, and second, it must be recognized that path‐dependent routines may diminish organizational flexibility necessary for competitiveness in a changing environment. Practical implications It is important for organizations to recognize that favorable conditions are necessary for employees to generate value. A potential favorable condition can be the HRIS that meets employee expectations and disseminates unique managerial knowledge. Originality/value The paper bridges diverse literature to highlight the role of HRIS in firm competitiveness. A new construct is proposed – HRIS specificity – to guide future research in the empirical examination of the proposed relationships and the dynamic capability paradigm.