If HR were really strategically proactive: Present and future directions in HR's contribution to competitive advantage

Current business conditions mandate greater competitive advantage from HR agendas and processes. To add greater competitive advantage, HR must contribute strategic value against criteria from customer and capital markets. HR can add strategic value either reactively or proactively. In its strategically reactive mode, HR assumes the existence of a business strategy and adds value by linking HR practices to the business strategy and by managing change. In its strategically proactive mode, HR creates competitive advantage by creating cultures of creativity and innovation, by facilitating mergers and acquisitions, and by linking internal processes and structures with ongoing changes in the marketplace. This article defines and describes these specific practices through which HR can contribute to greater competitive advantage. © 1999 John Wiley & Sons, Inc.