The contribution of core employees to organizational capabilities and efficiency

Abstract

This research tested the role of core employees (CEs) in firm competitiveness. The article defines theoretical relations among the value and uniqueness of CEs' knowledge, skills, and abilities (KSAs) and organizational capabilities that define the competitive advantage of the firm; using a sample of Spanish firms with more than 500 employees, it also analyzes empirically whether CEs are associated with organizational efficiency.The HR manager assessed the value and uniqueness of CEs, and a different manager appraised organizational capabilities. We used a formal methodology to test efficiency. A variance analysis indicated a higher organizational capability for firms using the most valuable and unique CEs and data envelopment analysis (DEA) confirmed that such firms had the highest efficiency. © 2006 Wiley Periodicals, Inc.