Research on strategic human capital management (HCM) has concentrated on firm outcomes such as performance and competitive advantage. However, there is less understanding regarding the determinants of firms’ strategic behaviors in HCM. While the influence of context on firm behaviors has been well documented in the management literature, it has been under-researched in the specific realm of strategic HCM. This dissertation addresses how industry cycles, an important market context, affect firms' management of existing human capital regarding the treatment of women employees, and firms’ acquisition of human capital through human-assets-embodied (HAE) acquisitions. By using multilevel and longitudinal analyses the three empirical studies in this dissertation found determining effects of industry cycles on firms’ strategic behaviors in HCM. The results of the first study indicate that firms manage their tendencies for gender discrimination regarding differential punishment–referred to as the gender punishment gap– during downturns by imposing low-visibility punishments (through pay freezes) rather than high-visibility punishments (through layoffs) on top female leaders to mitigate reputation loss. The second study confirms firms’ higher likelihood to promote women into leadership positions during downturns than upturns–the glass cliff phenomenon– but highlights firms’ strategic consideration that only women who are top performers experience increased promotion chances during downturns. The third study shows that firms make HAE acquisitions more in upturns than downturns to meet their strategic priorities and take advantage of the benefits from human capital embodied in acquisitions. By emphasizing the influential effects of context on firms’ strategic decision-making, the three studies explain why and when firms undertake certain HCM practices, thereby deepening our understanding of firms’ strategic behaviors in human capital management. Therefore, the dissertation complements existing research on strategic HCM, which focuses on the outcomes of HCM behaviors. It also contributes to management practice by sensitizing business decision-makers to the important role of industry cycles in HCM practices.