Access, Critical Resource Theory And The Governance Of Human Capital Intensive Firms

As human society is moving into the era of knowledge-based and information economy from the era of industrial economy, human capital has gradually replaced physical capital and become the main source of value creation. Therefore the rising of new forms of enterprise——human capital-intensive firm has challenged traditional firm theory and corporate governance based on physical capital perspective. In response to this challenge, Rajan and Zingales, two professors of University of Chicago, put forwarded the core resource theory. They redefined firm both in terms of unique assets and in terms of the people who have access to these assets, which formed a set of new viewpoint about the enterprise essence, enterprise boundary and corporate governance of human capital intensive organization.According to Rajan and Zingales's thoughts, the paper expanded the access mechanism to the corporate governance mechanism and long-term institutional arrangements mechanism based on its original boundary define mechanism as well as modeled it. By using the core resource theory, the article established three sub models: entrepreneur founded enterprise model, the core of human capital and material capital into enterprise model, which can be reduced to the general model of human capital intensive business management, entrepreneurs. By controlling the enterprise's core resources access in anticipation to coordinate enterprise core resources holders afterwards which include the enterprise's core physical capital holder and core human capital holder, the entrepreneurs can prevent the enterprises from bankruptcies caused by the conflicts between the core resource holders and make companies complete.In order to illustrate the boom of merger and acquisition (M&A) activities in human capital-intensive industries in recent years, the paper established a human capital intensive enterprise model and analyzed the access from the perspective of human capital intensive enterprises facing the problems of M&A in Chapter 4. As the application of the model, Chapter 5 and Chapter 6 analyzed the management of partnership enterprises and human capital injected the labor-intensive enterprises followed by the comparison between them. In the end the article gave a brief outlook of the studies in core resource theory and human capital intensive enterprises.