Managing human resource for competitive advantage: a study of companies in Singapore

We see two major streams of research in the strategic human resource management literature: (1) the link between strategy and human resource (HR) practices and (2) the link between HR practices and firm performance. There is a plethora of theoretical perspectives on the first link. Unfortunately, there is not much empirical work. The second link has seen a spate of empirical studies. However, most of them embrace the universal perspective and the role of strategy as a contingency has not been adequately addressed. This could potentially result in the underestimation of the impact of HR practices on organizational performance. This study addressed the above two weaknesses in previous research in the strategic HR management field. Using a sample of about 200 of the largest companies representing all major industries in Singapore, we found that organizational strategy affects HR practices. Moreover, findings suggest that the strategy-HR interaction accounts for more variation in firm performance than the main effect of HR. Implications of the findings are discussed.     

Organizational career management practices and objective career success: A systematic review and framework

The theorization of the relationship between organizational investments in career development and individual success remains underdeveloped, and empirical tests of this relationship, which have been dispersed among several disciplinary areas, have produced inconsistent results. Addressing these issues, the purpose of this article is to propose a theoretical framework that illustrates why and how organizational career management practices translate into career success and under what circumstances the relationship is effective. Using a systematic review of empirical studies on career management practices and objective success, we identify three theoretical mechanisms - developmental, informational, and relational - and two groups of contingency factors that explain this relationship. Our framework advances the extant literature on organizational career management and provides suggestions to companies for designing effective career management systems.     

Two are Better Than One: The Link Between Management Systems and Business Performance

Little is known about the complementary performance benefits associated with facilities’ combined use of both quality management systems (QMSs) and environmental management systems (EMSs), and how these performance benefits might differ from those associated with facilities’ use of only one of these management systems (or neither). We suggest that complementarities arise because each management system fosters the development of internal capabilities that facilitates the adoption and routine operationalization of the other, while maintaining differentiated goals that enhance strategic value. We examine these relationships using a sample of 2619 manufacturing facilities operating within six OECD countries, while controlling for self‐selection issues. Our findings support the idea of complementarity, in that facilities that adopt both QMS and EMS are more associated with positive business performance than facilities that adopt either a QMS or an EMS on its own, or no management system. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Business strategy,human resource systems,and organizational performance in the Spanish banking industry

Although human resource (HR) systems in the form of bundles of HR practices and their impact on organizational performance have attracted considerable attention, the role that business strategy could play in this relationship remains uncertain, particularly in service industries. In order to avoid any confounding effects, this study analyzes the performance impact of adopting different HR systems in an empirical setting in which employees are vital if the company is to remain competitive, the firms belong to the same industry and the primary activities involved are the delivery of services to customers. Based on survey data from 86 banking institutions in Spain, three HR systems were identified, two of which rendered better organizational performance when matched to defender strategies, thus supporting a contingency explanation of the adoption of HR systems. Findings showed that even in an industry under strong universalistic pressures to adopt certain predictable HR practices, matching HR systems with a business strategy pays off.     

Commitment-based HR practices,different types of innovation activities and firm innovation performance

Research on human resource (HR) practices and innovation has increased in the strategic HR management literature over the last decades. Scholars suggest that commitment-based HR practices contribute to innovation performance of the firm. However, prior research puts little emphasis on the causal linkages among commitment-based HR practices, different types of innovation activities and firm innovation performance. This article opens the black box of the relationship between HR management and firm performance by examining the causal relationships among a bundle of commitment-based HR practices (i.e. a commitment-based HR system), different types of innovation activities and firm innovation performance. On the basis of a survey of 103 Turkish firms, empirical results show that a commitment-based HR system has a positive effect on process, organizational and marketing innovation activities. Furthermore, a commitment-based HR system mainly affects organizational innovation activities and shows that these innovation activities are the core drivers of process and marketing innovation activities, leading to higher rate of product innovation activities. Subsequently, product innovation activities enhance firm innovation performance, emphasizing their determinant role.     

Linking human resource management practices and customer satisfaction on product quality

Although research has addressed relationships between human resource management (HRM) practices and several firm performances, it remains rare for studies to assess the processes that may underlie such relationships. This study aims to investigate the relationships between HRM practices and product quality by hypothesizing a mediating role of organizational commitment. We design a conceptual model and construct hypotheses that are tested using structural equation modeling on data collected from an international sample. The study contributes to the theoretical and empirical development of a model to explain and open the black box between skill-developing HR practices and quality performance.     

The relationship between quality management and new product development: evidence from China

Research suggests that organizations involved in new product development (NPD) can adopt quality management (QM) systems to optimize their NPD processes and thereby build their NPD competence. This paper contributes to a further understanding of the link between QM and NPD by investigating why and how more effective QM can promote and assist NPD. Based on taxonomy of QM practices, we examine the differences between the effects of infrastructure quality management practices (IQMP) and core quality management practices (CQMP) on a firm’s NPD capability and NPD performance. We also incorporate NPD practices in a conceptual model, to examine the integration effects of QM practices and NPD practices. The results show that IQMP significantly promotes NPD capability, while the influence of CQMP on NPD capability is relatively insignificant. Furthermore, our results indicate that the integration of design and manufacturing has a significant negative influence on NPD capability. Our findings highlight the significant role NPD capability plays in explaining the link between QM practices and NPD performance. Our findings also suggest to practitioners that they should integrate QM with other technology management practices in order to optimize their NPD processes.     

A configuration of sustainable sourcing and supply management strategies

This paper seeks to analyze empirical differences and patterns in applied sustainable sourcing and supply management (SustSSM) strategies. The question is whether companies employ individual SustSSM practices in reoccurring configurations. The study aims to identify such typical corporate SustSSM approaches and how they vary across contingency factors such as industry or region. We employed a two-step methodology. First, a literature review derives scoring scales for six categories of how companies can integrate sustainability into sourcing. Second, using these scales for a content analysis of sustainability reports from 99 corporations spread across different regions, a taxonomy is derived by means of a cluster analysis.Identifying five corporate types of how firms configure their SustSSM strategy, the analysis suggests that companies do not combine SustSSM practices randomly. Rather, individual SustSSM practices are combined to alternative configurations that follow different logics to form sustainable sourcing strategies. Addressing a cross-regional and cross-industry sample, the results encourage further investigating the interplay of different SustSSM practices. In doing so, we show the need to align SustSSM configurations with a firm's specific operative supply chain structures and strategic goals.     

The adoption of international best practices in a Western culture: East meets West

Contemporary organizations facing changing economic and strategic realities have considered many models of organizational performance, in particular those based on ‘actices’odels of best practice have emanated from the USA, some European countries and Japan; however, the question remains –ternational best practices be transferred to Australia or elsewhere? Since companies in Japan, in particular, have been seen as harbingers of these best practices, we compare the level of adoption in Japanese and non-Japanese companies in three Australian industries. Differences between Japanese and non-Japanese companies were more apparent in the automotive industry with only a few differences found for the information and tourism industries. The main differences between the two ownership categories were in areas of unionization and management–elations, that is, areas that may be influenced more by institutional arrangements than by cultural differences. Perhaps the most interesting finding from the comparative research was that there were relatively few differences between the Japanese and non-Japanese companies. These characteristics include: organizational structure, labour turnover, teams as part of the organizational structure, levels of training, use of ringi-style decision making, security of employment, employee welfare schemes, the use of and success with performance appraisal and performance-related pay, and a wide range of quality systems. The key pillars of Japanese management are not being transferred, and we cannot expect to see identical arrangements regarding other management practices. But the differences between Japan and western countries such as Australia are very gradually declining.     

Aligning strategic human resource management and person–environment fit

Strategic human resource management addresses the need to create vertical linkages of human resource management (HRM) attributes with corporate strategy as well as horizontal linkages that integrate practices among HRM functions. Most models commonly focus on either vertical or horizontal linkages. This paper utilizes three categories of person–environment fit to create both vertical and horizontal linkages. Based on a strategic contingency framework, it demonstrates how person–environment fit relates to organizational competencies that supports corporate strategy. Furthermore, it demonstrates how person–environment fit can be used to promote internal alignment of HRM practices. Implications of this approach to strategic human resource management are then discussed.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance

Green competences are dynamic capabilities based on practices (green practices), routines and structures that can be used to detect opportunities, make the most of them and use them to transform organizations. With this in mind, we explore the relationships between environmental management, organizational performance, and organizational processes and practices. We identify three key constructs related to green competences: (1) hybrid structures, (2) environmental best practices and (3) strategic flexibility, a key variable connecting structural design and green practices to organizational performance. We propose that the implementation of specific organizational structures characterized by the inclusion of market‐driven control practices within hierarchies (internal hybrids) could enhance firms' environmental responsiveness and deployment of green best practices. In addition, we suggest that green practices and structures are positively related to the development of strategic flexibility, driving above‐average returns in dynamic environments. To test these hypotheses, we use data from the European aviation industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Towards a contingency theory of corporate planning: a systematic literature review

A major research stream examines corporate planning in its context by drawing on the contingency approach, which forms a major theoretical basis for the fields of strategic management and management control. This research paper provides a comprehensive review of this research stream and identifies important contingency factors, recurring results, and commonalities with the theoretical basis of the contingency approach. It reviews 195 studies that investigate the context factors of corporate planning at the organizational level of analysis and were published in ranked academic journals since 1967. This review contributes three findings to a contingency theory of corporate planning. First, this research stream is highly fragmented, replication of findings is scarce, and the cumulative growth of knowledge is restricted. My review shows that 866 different causal models link 30 context factors and 54 design aspects of the corporate planning system, and yet 498 of these causal models are only addressed in one single study. Second, the majority of contingency studies employ the selection fit approach and cross-sectional data. The more rigorous tests of contingency hypotheses, interaction fit and system fit approaches based on longitudinal data, are relatively scarce. Third, this review highlights consistent results across divergent research settings and designs. Thus, it identifies four important context factors of a corporate planning system: (a) management and planning philosophy, (b) organizational size, (c) environmental uncertainty, and (d) task interdependence. This comprehensive set of context factors facilitates the development of a more pronounced contingency theory of corporate planning.     

Total quality management and human resource systems: an international comparison

This paper takes advantage of a unique international data set to examine the determinants of the adoption and sustainability of total quality management techniques, focusing in particular on the role played by human resource professionals and practices. The data come from a 1991 survey conducted by Ernst and Young and the American Quality Foundation covering the use of TQM tools in the computer, auto, health care and banking industries in Japan, the United States, Canada and Germany.

The research distinguishes between two ways of implementing total quality management – one approach conceptualizes TQM as a relatively limited set of technical engineering changes while the second implements these technical changes as part of a larger transformation of the organization of work. We find support for the second approach in that the number of employees using quality tools and the number of quality tools in use is greater and lasts longer in firms that also have team-based human resource systems for frontline employees, with team structures, suggestion systems, meetings and group rewards. This central finding holds across all countries and industries studied.

We also find that achievement of these changes requires the commitment of organizational stakeholders to incorporate the interests of employees in strategic decision making. Though union presence alone does not predict the adoption or sustainability of these innovations, partnership between management and union does have a positive effect. The level of strategic influence of the human resource department also influences innovation, though in ways that differ across countries and industries.

The findings suggest the value of comparative studies and of research focused at exploring sub-national variation. The findings also suggest the value of a longitudinal study of the sustainability of innovation.     

The moderating role of contextual factors on quality management practices

This study investigates how contextual factors influence the relationship between Quality Management (QM) practices and manufacturing performance. It contributes to the contingency theory of QM effectiveness. Drawing on the management literature, we differentiate two different groups of QM practices: Quality Exploitation and Quality Exploration. The analysis empirically investigates the internal fit with organizational structure and the external fit with environmental uncertainty on the relationship between Quality Exploration, Quality Exploitation, and operational performance. The data comes from a survey of 238 manufacturing plants in three industries across eight countries. Regression analyses show that both internal fit with the organizational structure and external fit with the environment affect performance. The findings also provide insights for managers on how to customize QM programs to achieve optimal performance benefits. In stable environments Quality Exploitation practices provide the best performance outcomes, while in a dynamic environment Quality Exploration practices with an organic organizational structure give the best results.     

The impact of employee satisfaction on quality and profitability in high-contact service industries

The extant operations management literature has extensively investigated the associations among quality, customer satisfaction, and firm profitability. However, the influence of employee attributes on these performance dimensions has rarely been examined. In this study we investigate the impact of employee satisfaction on operational performance in high-contact service industries. Based on an empirical study of 206 service shops in Hong Kong, we examined the hypothesized relationships among employee satisfaction, service quality, customer satisfaction, and firm profitability. Using structural equations modeling, we found that employee satisfaction is significantly related to service quality and to customer satisfaction, while the latter in turn influences firm profitability. We also found that firm profitability has a moderate non-recursive effect on employee satisfaction, leading to a “satisfaction–quality–profit cycle”. Our empirical investigation suggests that employee satisfaction is an important consideration for operations managers to boost service quality and customer satisfaction. We provide empirical evidence that employee satisfaction plays a significant role in enhancing the operational performance of organizations in the high-contact service sector.     

A bridge over troubled water: Replication,integration and extension of the relationship between HRM practices and organizational performance using moderating meta-analysis

Meta-analyses on the relationship between human resource management (HRM) practices, as an aggregate and individually, and organizational performance has yielded mixed results, further fueling the theoretical debate among HRM scholars. To resolve this tension, we conduct a moderating meta-analysis of 89 primary studies to replicate, integrate and extend prior work. Comparing the variance explained by differences in HRM practices versus those explained by contextual and empirical factors indicates that context and research design have a strong influence on the relationship between HRM practices and performance. Despite the voluminous research on this issue, the differences in the relationships of various HRM practices explains only 4% of the variance in performance, whereas, societal context, industry sector and firm size explain 33%, 12% and 8%, respectively. Empirical contingencies including four categories of performance outcomes and four types of participants explain 13% and 9% of the variance in the results, respectively. Thus, our findings provide strong support for the contingency theory. The theoretical and empirical implications for future research in the area are discussed.     

How Strategic Focus Relates to the Delivery of Leadership Training and Development

Despite progress in the development of leadership development models over recent years, these models fail to account for the differentiation in leadership training and development (LTD) practices found between organizations. We conducted an exploratory, multiple case study of formal leadership training and development in 10 organizations, in different business sectors in the United Kingdom. We show that the strategic focus of LTD was shaped by the business goals pursued by these 10 organizations. We also found the strategic focus of LTD to be a broad contingency factor differentiated by level of impact, which then influenced the pattern of LTD delivery. The findings offer support for a contingency perspective in explaining how leadership training and development is configured in differing organizational contexts. © 2014 Wiley Periodicals, Inc.     

Strategic human resource management and MNEs' performance in China

This study tested a perspective of strategic human resource management (SHRM) and compared human resource practices among multinational enterprises (MNEs) in two industries in China. Specifically, empirical data from firms in China's soft-drinks and electronics industries were analysed. The results supported a number of basic assumptions of the SHRM model, such as those regarding the relationship among firm environments, firm strategy, firm human resource practices and firm performance.     

The role of organizational culture and HRM on training success: evidence from the Canarian restaurant industry

This research aims to analyse the influence of organizational culture and human resources management (HRM) practices on the success of training at restaurants. Effective training is especially important for modern restaurants that aim to gain competitive advantage by means of good quality service and performance of their employees. To achieve this objective, an empirical study was conducted on 137 restaurants in the Canary Islands. Results show that organizational culture does not influence the success of the training programmes unless HRM practices that support the training process are implemented. Specifically, the study reveals the full mediating role of HRM practices between a continuous learning culture and effective training.