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Introduction
The resource-based view of the firm theory advocates that in certain circumstances sustained competitive advantages can be achieved through leveraging a firm's resources, such as human capital ([20] Coff, 1997). Organizational human capital is unique and scarce resources that cannot be imitable and substitutable for any other resources by competing firms (Barney, 1991; [78] Wright and McMahan, 1992; [19] Chen and Lin, 2003; [37] Hatch and Dyer, 2004). Human capital is essential for the execution of flexible strategies in global markets (Teece et al. , 1997; [62] Nelson and Quick, 1991). It consists of collective knowledge, skills, abilities, expertise, experiences, competency, or capability of employees within a firm that are valuable and unique, and should be kept out of reach of other companies ([69] Roos et al. , 1998; [24] Edvinsson and Malone, 1999; [52] Ling and Jaw, 2006; [4] Banutu-Gomez and Banutu-Gomez, 2007).
As significant growth has been experienced in developing economies, a challenge for multinational companies (MNCs) is how to effectively manage and enable human capital to compete successfully in the global market ([68] Ready and Conger, 2007). [66] Pucik et al. (1993) have indicated that MNC's human resource management (HRM) plays crucial role in acquiring and enhancing organizational competences for the firm. Prior studies have also confirmed the important role of MNC's HRM in enhancing organizational performance ([51] Lee and van Witteloostuijn, 1998; [16] Brown, 1999; [34] Grossman, 2000; [50] LeBlanc et al. , 2000; [23] Dzinkowski, 2000). Existing studies, however, have not paid sufficient attention to how HRM may offer specific advantages to compete in the international arena ([51] Lee and van Witteloostuijn, 1998; [16] Brown, 1999; [34] Grossman, 2000; [50] LeBlanc et al. , 2000; [23] Dzinkowski, 2000). As such, a first aim of the study is to investigate the influence of human capital management on a firm's global competiveness, and to focus on identifying critical HRM practices that contributes to a firm's success in the global market. For the above purpose, we further introduce the construct of international human capital management (IHCM). IHCM has been referred to as HR practices that facilitate the development and exploitation of a firm's international human capital, the human capital that enables a firm to compete in the global markets ([52] Ling...