Chapter 2: The Human Resource Ecosystem: Reconciling Alignment and Disruption

Organizations are reaching beyond typical firm boundaries to achieve competitive advantage. Human resource (HR) systems must simultaneously support alignment across the business ecosystem while acknowledging the benefits of disruption. The authors provide a fresh perspective on strategic HR management (SHRM), expanding the view beyond organizations to look at the ecosystem as a whole. The authors address the need for HR systems to balance the dualistic tensions of alignment and disruption. While examining the environmental logic of the ecosystem, the authors provide examples of disruption through competition and alignment through cooperation. The authors then examine potential research implications that could assist managers as they govern in a constantly changing and complex ecosystem. This chapter presents the HR ecosystem framework which provides a clear discussion of how different governance mechanisms might be utilized to help firms achieve a competitive advantage through the balance between alignment and disruption.