Relationship between strategic human resource management and firm performance

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184 citations0/0 files storedInternational Journal of Manpower

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Human Resource and Talent Management Management and Organizational Practices Employee Performance and Leadership

Abstract

Purpose Previous studies suggest that strategic human resource management (SHRM) is beneficial to firm performance. This study seeks to investigate the moderating effect of product market strategy (PMS), one of the contextual factors, on the relationship between SHRM and firm performance. Design/methodology/approach This study conducted a survey on 235 Taiwanese firms and hierarchical regression analysis was performed. Findings The results failed to support the “universalistic” SHRM perspective. Only the interaction between an innovative PMS and SHRM exerted a significant effect on firm performance, which supporting the argument of the “contingency” perspective. The findings of this study confirmed the validity of the contingency model in an Asian society. Research limitations/implications Different from most previous studies conducted in a Western context, this study examined the data of Taiwan, and thus examined a very different cultural and institutional environment. Although this study obtained valuable results, the limitations of the subjective data, number of measurement items and the cross‐sectional design were discussed. In a future study, more work on revealing the influence of other unexplored factors to better understand the determinants of firm performance should be done. Practical implications Coping with innovation needs, the degree to which traditional human resource management (THRM) is transformed into SHRM determines how well a firm is able to sustain and enhance growth. This will enable firms to keep pace with the rapid environmental changes associated with globalization. Originality/value Investigates the moderating effect of PMS on the relationship between SHRM and firm performance in a Taiwanese context.

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References

1995THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON TURNOVER, PRODUCTIVITY, AND CORPORATE FINANCIAL PERFORMANCE.1986Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?1995Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry 1984Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit 1994EFFECTS OF HUMAN RESOURCE SYSTEMS ON MANUFACTURING PERFORMANCE AND TURNOVER.1992Theoretical Perspectives for Strategic Human Resource Management 1994Competitive Advantage Through People 1989The Concept of Fit in Strategy Research: Toward Verbal and Statistical Correspondence

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2016A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms 2019How Human Resource Management Practices Translate Into Sustainable Organizational Performance: The Mediating Role Of Product, Process And Knowledge Innovation 2016Human resource practices, employee attitudes and small firm performance 2022Strategic Human Resource Management

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