Is a metaphor that is used to capture the thinking behind contingency theory, particularly its application to corporate strategy. Contingency models of strategy development stress the monitoring by the firm of its environment with internal systems, including human resource management, being adapted to the competitive requirements of the external situation. The belief that HR management should be adapted to the competitive strategy of the firm exemplifies this idea. Resource-based views of strategy, in contrast, emphasize the identification and cultivation of distinctive competencies within the firm, which can confer competitive advantage: in their case, strategy formulation should be inside-out.
Subjects: Human Resource Management.