Resource-Based Perspective of Education: A Multi-Level Analysis of the Value of Creating Human Capital

This paper explores how individuals can manage personal resources and establish competitive advantage by human capital development. We draw a connection between the resource-based view and career success literature to propose how developing one’s personal resources will result in positive career outcomes for the individual. Additionally, we extend this to the community level suggesting how this view of human resources can be applied at the aggregate level – thereby leveraging human capital to generate positive outcomes for communities or regions. Analysis of data indicates that investing in additional years of schooling is good for both the individuals and communities. Findings also suggest that this development of human capital to gain a competitive advantage varies by industry. Results from this study highlight the usefulness of the resource-based view for actors other than firms, and that developing personal resources can produce an individual competitive advantage.