ABSTRACT
This chapter argues that the firm’s capability to attract competence by being more attractive than its competitors on the labor market affects its competitiveness on the product market. Competitiveness between firms on the market of products is affected by the competition on the market for competences; the most attractive employer attracts the most talented individuals to deliver the best products and services. The competence-based view of the firm needs to move one step further by analyzing the firm’s attractiveness on the labor market. Strategic human resource management (HRM) makes the link between the organizational level and individual level and between strategic management and human resource management, by focusing knowledge workers that provide strategic competence to the firm. The strategic issue is to know whether the firm’s HRM practices make it more or less attractive than its competitors on the labor market. The geographical dimension of competition may lead employers to change their location to increase their attractiveness or reduce competition.
