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Advances in Developing Human Resources
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Institutional Economics and Human Resource Development

Greg G. Wang

School of Human Resource Development and Technology at The University of Texas at Tyler

Rita L. Dobbs

School of Human Resource Development and Technology at The University of Texas at Tyler

The problem and the solution. Institutional economics has long been associated with economic and training behaviors in organizations since the 1950s. Human resource development (HRD) scholars have not been adequately exposed to the relevant theories for its foundational role and direct applicability to HRD research and practice. In an effort to properly understand economics as a foundation of HRD, this article presents institutional economic theories and models pertinent to HRD research and practices. By examining institutional school of contemporary economics, especially the internal labor market theory, it is shown that economic theories not only provide a foundation but also have important implications to research and analytical approaches to the field of HRD.

Key Words: institutional economics • internal labor market • HRD theory building • neoclassical economics

This version was published on December 1, 2008

Advances in Developing Human Resources, Vol. 10, No. 6, 770-787 (2008)
DOI: 10.1177/1523422308324622
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