Human Capital in the Supply Chain of Global Firms.
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Friedman's contention that we are operating in a flatter world is correct. However, it is argued here that firms challenged with operating in this environment must recognize that the levelers have not made the playing field equal for each firm. The playing field has been leveled by increasing the need to focus on the human capital (and constraining managerial mindsets) of the supply chain personnel that the firm employs. This article has argued that human capital is the foundation for business success in the flat world. Through the embodiment of human capital in the firm's global supply chain the firm is able to compete. However, it is argued that global competitiveness is constrained by the mindsets that supply chain personnel operate under, as well as the degree of analytical and social capital possessed. It is argued that through a four-step assessment procedure, firms can assess and appropriately match supply chain personnel to specific jobs, thereby increasing their global competitiveness. It is argued here the importance of the individual is key to effective supply chain operations. Finally, it is recognized that the capital dimensions enumerated here are but a few of the human capital dimensions that can lead to competitive advantage. However, it is hoped that this discussion can serve as a starting point to recognizing the interaction between mindset, human capital and global competitiveness in an increasingly competitive global marketplace. 2006 Elsevier Inc. All rights reserved.
