Using human capital as a competitive advantage : How small international trading companies work with strategic HRM and how this affects their growth

Abstract: The purpose of this study was to map and explore how Swedish small international trading companies use strategic HRM as a way to experience competitive advantage, and how this affects their growth. Theories about the human capital as a resource as well as a competitive advantage, is presented. The theoretical framework continues with theories about the concept of strategic HRM, were the focus is put on the HR-philosophy, the formal HR activities and how this is connected to companies’ growth. The development of e-HRM, and the integration of this into formal HR activities, are also discussed. The findings in this study was that overall, there are two different approaches to how the companies work with strategic HRM, the exclusive and inclusive. This study implies that formal strategies for recruitment, development and retention of employees are scarce, and the results also indicate a positive correlation between how the companies work strategically with HRM and their annual growth rate.