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Collaborations between individuals in firms have important implications for the development of relational and human capital. In knowledge-intensive contexts where collaborations are formed to deliver services to clients, collaboration decisions can involve nontrivial tradeoffs between short-term and long-term benefits: individuals and firms must carefully manage the tradeoffs between leveraging existing relational and human capital for the reliable performance of repeat collaboration and creating new relational and human capital through new collaboration. Building from the premise that servicing clients is central to collaboration decisions in human asset–intensive firms, we examine how client-related factors shape collaboration decisions among lawyers (partners) in UK law firms providing M&A legal advisory services. We focus on three key client-related dimensions that we predict govern collaboration decisions: the depth of individual- and firm-level relationships with the focal client, key client attributes that reflect the client’s status and its use of different firms to undertake its outsourced work, and client-driven individual- and firm-level resource constraint. Our empirical findings support our proposition that client-related factors influence the pattern of collaborations between individuals in firms. We also reveal how client-related factors at the individual level can have opposite effects on collaboration decisions from those at the firm level. Overall, our findings contribute to research on relational capital, strategic human capital, team formation, professional service firms, and the microfoundations of strategy.

The current paper complements and extends traditional Penrosean theories of firm growth by examining how a (supplier) firm’s relational embeddedness with its portfolio of existing buyers affects its business growth. Our theorizing rests on the foundation that a firm’s business growth stems from its breadth (or volume) of opportunities for creating added value with buyers, which more fully realizes the Penrosean vision that firm growth can be explained by a dynamic interaction between productive resources and demand-side market opportunities. Although relational embeddedness may give a supplier dyadic advantages with focal buyers, which supports business growth, we theorize that it can also lead to narrower added value business opportunities with the supplier’s entire portfolio of buyers. Critically, we hypothesize that the effect of relational embeddedness on business growth is moderated by a set of relational and demand-side attributes. These hypotheses are tested on a panel data set of patent law firms (suppliers) and their relationships with corporate clients (buyers). We find that greater relational embeddedness is associated with slower supplier business growth, and consistent with our hypotheses, this negative effect is alleviated when these firms have greater cross-servicing ability and receive more relational commitment from buyers but exacerbated when suppliers hold more buyer-specific knowledge and when buyers undertake more (internal) concurrent sourcing. In turn, our research demonstrates how the attributes of a supplier’s relationships with its portfolio of buyers can impact access to new business opportunities and thus opens up new directions for research on firm growth, demand-side strategy and buyer-supplier relationships.

Introduction Successful ALIF surgery depends upon achieving solid fusion, whilst avoiding significant complications. Herein, we present the ‘Northumbria Technique’ of combining allograft with autograft in order to achieve solid interbody fusion. Materials and Methods A single-surgeon series of 100 consecutive patients undergoing stand-alone ALIF from 2016 to 2019 was studied. All had percutaneously harvested iliac crest bone graft (ICBG) dowels inserted into blocks of fresh frozen femoral head (FFFH) allograft, which were then inserted into the ALIF cages. Patients had dynamic radiographs at 4 months, CT at 6 months, and patient reported outcome measure scores (PROMS) throughout. Results One hundred patients (average age 44.8 years) were followed-up for an average of 29.1 months. Ninety-four (94%) patients were assessed as having fused on both CT and radiographs by an independent Radiologist. Three (3%) patients had abolition of movement on radiographs, but either lacked a CT scan or failed to meet Williams criteria for fusion. Two patients failed to attend for any imaging, so were considered not fused, and one patient had no evidence of fusion in either modality. There was a significant improvement in all PROMS. There were no intra-operative complications, and one patient had transient donor-site pain. Conclusions The newly described ‘Northumbria Technique’ utilises the osteoconductive characteristics of the FFFH allograft, as well as the osteoinductive and osteogenic properties of the ICBG autograft. It gives high fusion rates (94–97%) and statistically significant improvements in PROMS, whilst avoiding the complications of harvesting a large amount of autograft and the huge costs of using synthetic agents.

Objective: To determine the safety and efficacy of the proposed venous thromboembolism (VTE) prophylaxis regime in patients undergoing anterior lumbar interbody fusion (ALIF) surgery. Background: Deep vein thrombosis (DVT) and pulmonary embolism (PE) are recognized complications after spine surgery, with rates in the literature ranging from 0% to 14% with some form of prophylaxis. Pharmacological thromboprophylaxis can cause postoperative bleeding and hematomas, which can result in significant neural compromise or permanent injury, and wound complications. ALIF surgery involves the handling and compression of major abdominal vessels during surgery and this adds to the risk of both arterial thrombosis and VTE. Methods: A retrospective review of data, which were prospectively collected to evaluate the incidence of VTE in 200 consecutive patients undergoing ALIF following our VTE prophylaxis protocol. All patients had low molecular weight heparin, tinzaparin 4500 units subcutaneously on the evening before surgery, then daily for 3 to 5 days, then aspirin (acetylsalicylic acid) 150 mg daily plus lansoprazole 30 mg daily for 4 weeks after surgery. All patients had intermittent pneumatic compression of their calves and thighs intraoperatively and for 24 hours postoperatively then had early mobilization and thromboembolic deterrent stockings for 6 weeks. Results: There was no incidence of any symptomatic VTE in the any of the 200 patients and no loss to follow-up. There was a 0% incidence of injury to the iliac vessels, symptomatic arterial occlusion, wound hematoma, major intraoperative bleeding, need for transfusion, symptomatic GI bleed, or retroperitoneal hematoma requiring intervention. Conclusions: The proposed VTE prophylactic regime is safe and efficacious and may decrease the incidence of symptomatic VTE in patients undergoing an ALIF procedure, and despite the use of chemical thromboprophylaxis, there is no evidence of bleeding complications as a result of using this regime. Level of Evidence: 4.

Firm-specific human capital (FSHC) has been an integral part of the vocabulary in the strategy field. Many scholars argue that FSHC inhibits employee mobility and drives employee retention at a discount, value appropriation, and firms' competitive advantage. FSHC also plays a central role in the resource-based view of the firm. In recent years, however, a significant debate has emerged on the validity and usefulness of the construct. The purpose of the chapter is to revisit this debate and discuss both challenges and opportunities related to FSHC. In a form of conversation, we take aim at FSHC from different angles and discuss its role as a mobility friction, in value appropriation of established firms, in the context of transitions between paid employment and entrepreneurship, and in the views of practitioners. While we agree that our understanding of the concept of FSHC must evolve, we continue to see its value in our theoretical toolbox.

We advance research on corporate diversification by joining insights from the demand-side and relational views in strategy to offer a novel theory of client-led diversification. We propose that client-led diversification results from a combination of the customer-driven opportunities emphasized in the demand-side view and the creation of added value through relational assets that is a central tenet of the relational view. Furthermore, we hypothesize that suppliers’ client-specific knowledge, clients’ relational commitment to suppliers, and growth opportunities in clients’ markets (relative to the suppliers’ own markets) will magnify the client-led diversification effect. We test our hypotheses using a longitudinal dataset on patent law firms and their diversification into new domains of patent prosecution work for their corporate clients. Managerial abstract Explanations of why firms diversify into new lines of business have largely concerned the redeployment of underutilized resources, with little regard to opportunities or influences stemming from firms’ existing customers. In our paper, we show how the changing scope of business needs from a knowledge-based supplier firm's set of existing clients is a central driver of supplier firm diversification, and this especially the case when the level of relational assets shared between a supplier and its clients is higher. In a competitive landscape where suppliers compete intensively for the business of clients, our results show how managers can increase the likelihood of capturing additional business from its existing exchange relationships rather than bearing the risks of seeking new exchange relationships.

The current paper complements and extends traditional Penrosean theories of firm growth by examining how a (supplier) firm’s relational embeddedness with its portfolio of existing buyers affects its business growth. Our theorizing rests on the foundation that a firm’s business growth stems from its breadth (or volume) of opportunities for creating added value with buyers, which more fully realizes the Penrosean vision that firm growth can be explained by a dynamic interaction between productive resources and demand-side market opportunities. While relational embeddedness may give a supplier some dyadic advantages with focal buyers, we theorize that it may lead to a narrower set of future added value business opportunities with the (supplier) firm’s entire portfolio of buyers. In addition, we hypothesize that this negative effect on business growth is moderated by a set of relational and demand-side attributes. These hypotheses are tested on a panel dataset of patent law firms (suppliers) and their relationships with corporate clients (buyers). Consistent with our hypotheses, we find that greater relational embeddedness is associated with slower supplier business growth, which is alleviated when these firms have greater cross-servicing ability and receive more relational commitment from buyers, but exacerbated when suppliers hold more buyer-specific knowledge and when buyers undertake more (internal) concurrent sourcing. In turn, our research demonstrates how the attributes of a supplier’s relationships with its portfolio of buyers can impact access to new business opportunities, and thus opens up new directions for research on firm growth, demand-side strategy and buyer-supplier relationships.

A large and growing literature spanning multiple fields has identified employee mobility as a critical influence on several important organizational outcomes. However, extant research on the topic is highly fragmented and lacks a unifying theoretical framework, impeding the development of a cumulative conceptually integrated body of research. We seek to remedy this situation by undertaking a review of research on employee mobility and its organizational impacts and casting it within a novel integrative conceptual framework. As a critical foundation for this framework, we highlight how the various organizational impacts of employee mobility are ultimately engendered by different dimensions of human and/or relational capital that are conveyed by mobile individuals. Building on this foundation, we describe how multilevel contextual factors—characterized as attributes of the employee, source and destination firms, and environmental conditions—may moderate the transfer and utilization of human and relational capital held by mobile individuals. Finally, we review how constraining factors, such as labor market imperfections on both demand and supply sides, can impede employee mobility and also how alternative competing channels—for example, alliances, networks and geographic spillovers, and acquisitions—may be used for effectuating the same organizational impacts as mobility events. These constraints and competing channels are important because they circumscribe the conditions under which employee mobility can be a critical influence on organizational outcomes. We seek to provide a rich integrative theoretical understanding of employee mobility and spur future research on important unanswered research questions.

Papers in this symposium examine the responses to, and the consequences of, growing institutional and stakeholder demands for gender equality and inclusion in the labor market. While some firms sub...

As employee mobility drastically increases for the modern workforce, returning to one’s previous employer (“boomerang” employment) is increasingly becoming a career pattern pursued by both job seek...

Extant research has highlighted the importance of resource reconfiguration for firm performance and has identified important drivers of the reconfiguration of macro-level resources, e.g. business units, focusing primarily on supply-side factors. Yet less is known about drivers of the reconfiguration of micro-level resources, e.g. human assets, and about the role which demand-side factors play in resource reconfiguration. We address these gaps and investigate how client-related factors influence the reconfiguration of micro-level resources in human-asset-intensive firms. Using fine-grained data on law firms advising on M&A mandates, we find that law firms are less likely to reconfigure their human assets (lawyers) on mandates for high-status clients, but more likely to reconfigure them when a client has a greater proclivity to switch business between multiple suppliers. Law firms also reconfigure their human assets less for incoming client projects when they have provided prior M&A services to the client, but they are more likely to reconfigure them when the client relationship has a broader scope. Finally, we also show that the size of a firm's client portfolio lowers reconfiguration. Our paper extends the literature on resource reconfiguration by explicating antecedents of the reconfiguration of micro-level resources and by highlighting the role demand-side factors play in it. We also contribute to the strategic human capital literature by showing how demand-side factors shape human capital deployment. Finally, we also add to the micro-foundations of resource-based theory by studying important micro-foundational processes underlying a firm's capacity to reconfigure its resources.

Extant research suggests that hiring experts during economic downturns can improve firm financial performance. However, recessionary labor markets deepen the challenges facing hiring firms, calling to question both the firm-level benefits and the tactics of acquiring talent when demand for a firm’s business is declining. We theorize and find that hiring expert talent during a recession actually weakens firm performance in the context of knowledge-based services. Notably though, we find firms can effectively attenuate the negative hiring effect by targeting particular labor pools, underlining the significance of gaining human capital advantages through focused sourcing. We test our hypotheses using a longitudinal sample of large U.S. corporate law firms between 2002 and 2010.

A growing body of strategy research offers insights for how gender diversity at the top management team may positively or negatively affect organizational outcomes. However, we currently know littl...

This chapter reviews the strategic management choices that are central to Professional Service Firms (PSFs), which in turn undergird their competitive advantage and long-run performance. The first part of the chapter focuses on human capital as a critical resource for PSFs, and explores different ways in which firm value is created by attracting, developing, configuring, and leveraging human capital. Further, it is critical that PSFs’ human capital be aligned with and harnessed to the firm’s objectives, which naturally raises issues related to motivating professionals, the sharing of economic rents with (and among) them, and the overall governance of the firm. The authors draw on these building blocks of strategy in PSFs to explain the corporate strategy decisions (such as service and geographic diversification) that PSFs must make, and discuss the value-creating role of client relationships.

Prior research has outlined the benefits (and hazards) of relational ties for dyad-level performance outcomes. However, by focusing at the level of the dyad, researchers may be omitting variables o...

Extant research theorizes that countercyclical hiring, i.e., hiring during economic downturns, can improve firm performance. However, prior studies have yet to unpack the conditions under which this seemingly paradoxical strategy–hiring talent when demand for firms’ products and services is less stable or declining–is beneficial for firms. In the context of the U.S. legal services industry, we theorize and predict that while firms may perceive they can achieve performance benefits from hiring expert talent during a recession, such recruitment harms performance. We theorize that during recessions, the sources of acquired hired human capital hold are more critical as hiring outcomes vary more dramatically across labor market pools during these economic downturns. We identify three sources for human capital from which we suggest firms can reduce the harmful performance effects of recessionary hiring. First, hiring human capital from institutions such as corporations or governments can establish or strengthen...

Our paper examines when human asset intensive firms re-configure their teams for incoming client projects, and how clients impact on the firm’s re-configuration decision. Making use of micro-data i...

Prior research has outlined the benefits (and hazards) of relationship-specific investments for dyad performance. I extend this research by examining the impacts of relationship-specific investment...

Extant theory suggests firm-specific human capital influences the share of value appropriate by firms and employees. However, when critical firm resources are the employees themselves, employee-fir...

Human capital based capabilities (HCCs) are critical knowledge assets for generating competitive advantage in Knowledge Based Service Firms (KBSFs). Development of new HCCs often means that KBSFs m...