Where do We Go From Here? New Perspectives on the Black Box in Strategic Human Resource Management Research

The main objective of the present research is to briefly review the strategic human resource management (HRM) literature from multilevel theoretical perspectives to summarize what we know about mediating mechanisms in the HR–performance relationship. By doing so, we highlight future research needs to advance theoretical understanding of the ‘black box’ in strategic HRM research. Furthermore, by offering additional theoretical perspectives that can be used to understand the mediating mechanisms at different levels, we suggest future research directions that capture the complexities associated with strategic HRM through a multilevel theoretical lens. Implications of the model are discussed.     

The case for psychology in human resource management research

A recent literature has developed criticising the growing influence of a psychological perspective within research on human resource management (HRM). This paper addresses and rebuts the various criticisms and outlines the positive contribution of work and organisational psychology to HRM research. In looking to the future and the continuing development of HRM research, we argue that there is a need to engage in research that is multidisciplinary, multilevel, multistakeholder, and multimethod. We propose a number of research topics that meet these criteria and to which work and organisational psychology can offer a distinctive contribution. We call for other disciplines to make a more positive contribution to ensure that HRM research continues to flourish.     

Disability status,individual variable pay,and pay satisfaction: Does relational and institutional trust make a difference?

Although prior research suggests that disabled employees have different needs in the context of some HRM practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees, n = 1,251; nondisabled employees, n = 9,959; workplaces, n = 1,806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm‐wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm‐wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.     

Advancing multilevel thinking in human resource management research: Applications and guidelines

Strategic Human Resource Management (SHRM) researchers have recently turned their attention to using various levels of analysis in examining the relationship between HRM and performance. Despite several calls for research that integrates multiple levels of analysis, HRM research has yet to apply a multilevel approach to its full advantage. In our view, the paucity of multilevel research is rooted in the lack of what we label multilevel thinking: the application of multilevel principles. In this conceptual paper, we develop 9 guidelines based on tailored multilevel HRM principles that offer a course of action for scholars who are interested in conducting multilevel HRM research. Following Kozlowski and Klein (2000), we build these principles around the what, how, where, when, and why questions in multilevel HRM research. Based on an analysis of 88 empirical multilevel HRM studies, we identify the approaches commonly applied when using multilevel principles, explain the weaknesses in current multilevel HRM studies, and offer what we consider good examples of a rigorous approach.     

Robustness issues in multilevel regression analysis

A multilevel problem concerns a population with a hierarchical structure. A sample from such a population can be described as a multistage sample. First, a sample of higher level units is drawn (e.g. schools or organizations), and next a sample of the sub‐units from the available units (e.g. pupils in schools or employees in organizations). In such samples, the individual observations are in general not completely independent. Multilevel analysis software accounts for this dependence and in recent years these programs have been widely accepted. Two problems that occur in the practice of multilevel modeling will be discussed. The first problem is the choice of the sample sizes at the different levels. What are sufficient sample sizes for accurate estimation? The second problem is the normality assumption of the level‐2 error distribution. When one wants to conduct tests of significance, the errors need to be normally distributed. What happens when this is not the case? In this paper, simulation studies are used to answer both questions. With respect to the first question, the results show that a small sample size at level two (meaning a sample of 50 or less) leads to biased estimates of the second‐level standard errors. The answer to the second question is that only the standard errors for the random effects at the second level are highly inaccurate if the distributional assumptions concerning the level‐2 errors are not fulfilled. Robust standard errors turn out to be more reliable than the asymptotic standard errors based on maximum likelihood.     

So,What Am I Supposed to Do? A Multilevel Examination of Role Clarity

Although prior research generally holds that role clarity is affected by both individual characteristics and organizational contexts, current conceptual or empirical models do not reflect the multilevel nature of these antecedents. A more complete understanding of how role clarity emanates from different organizational levels is necessary to help prevent poor job performance and other harmful consequences of ambiguous role expectations. To address this, I begin this research by investigating the effects of internal work locus of control, general self‐efficacy, and leader–member exchange on role clarity. With respect to the cross‐level effects, I focus on the roles of a manager's control style and the organization's strategy‐making pattern. Analyses of a multi‐industry, multilevel dataset collected from 724 employees and 124 managers in 25 organizations in Finland suggest that all of the individual‐level independent variables and a deliberate strategy‐making pattern improve role clarity. However, a deliberate strategy‐making pattern negatively moderates the relationship between general self‐efficacy and role clarity. Finally, even though an outcome‐based control system causes role ambiguity among employees in most functional areas, it may be an effective driver of role clarity among employees in sales jobs.     

A multilevel examination of high‐performance work systems and unit‐level organisational ambidexterity

This paper examines the process linking high‐performance work systems (HPWS) and organisational ambidexterity both at the unit and firm level of analyses by integrating strategic HRM, human capital and social capital perspectives. Multisource and multilevel data from 2,887 employees and 536 managers of 58 banks was collected. Results revealed that firm‐level HPWS were positively related to unit‐level employee human capital. Unit‐level employee human capital partially mediated the relationship between firm‐level HPWS and unit organisational ambidexterity. Furthermore, firm‐level social climate moderated the effect of firm‐level HPWS on unit organisational ambidexterity through unit‐level employee human capital. This paper contributes to HPWS and ambidexterity research by revealing the impacts of firm‐level HPWS and mediating mechanisms, as well as identifying boundary conditions for pursuing unit‐level organisational ambidexterity.     

Well‐being‐oriented human resource management practices and employee performance in the Chinese banking sector: The role of social climate and resilience

Drawing upon positive psychology and a social relational perspective, this article examines the relationship between well‐being‐oriented human resource management (HRM) practices and employee performance. Our multilevel model examines relationships among collectively experienced well‐being‐oriented HRM practices, social climate (characterized by trust, cooperation, and shared codes and language that exist among individuals within the organization), employee resilience, and employee (in‐role) performance. Based on the two‐wave data obtained from 561 employees and their managers within 62 bank branches in 16 Chinese banks, our multilevel analyses provide support for our four hypotheses. First, we found a positive relationship between well‐being‐oriented HRM practices and social climate. Second, social climate mediated the relationship between well‐being‐oriented HRM practices and employee resilience. Third, we found a positive relationship between resilience and employee performance. Finally, employee resilience mediated the relationship between social climate and employee performance. This study is one of the first to unpack the social mechanisms through which well‐being‐oriented HRM practices increase development of resilience and subsequent employee performance at the workplace, namely through influencing group feelings of social climate.     

Systemic justice and burnout: A multilevel model

With the aim of extending organisational justice research to embrace significant and enduring aspects of the workplace context, this study examines organisational culture and human resource management (HRM) as constitutive dimensions of systemic justice and relates them to employee health. Bridging organisational justice, HRM, organisational culture, and occupational health research, we advance and test a multilevel model relating systemic justice to burnout. Data collected from 60 organisations; 89 employee groups; and 1,976 employees provide support for the hypothesised relationships between justice‐oriented culture, in terms of organisational values and group culture, and justice‐oriented HRM. In turn, justice‐oriented HRM related directly to employee burnout and indirectly through employee perceived job control and supervisor social support.     

Interactive effects of various institutional pressures on corporate environmental responsibility: Institutional theory and multilevel analysis

This study investigates the role of institutional pressures in corporate environmental responsibility (CER) by testing the interacting effects among cognitive, regulative, and normative pressures at cross levels. Specifically, this research decomposes the cognitive dimension of CER into perceived environmental benefit and perceived ethical obligation to differentiate their mechanisms. The sample is obtained from 212 firms within 34 industrial clusters. Results of two‐level regression modeling confirm that regulative and normative pressures play different roles in the positive effects of perceived environmental benefit and perceived ethical obligation on CER. Regulative pressure attenuates the effect of perceived environmental benefit and amplifies the effect of perceived ethical obligation. Meanwhile, normative pressure attenuates the effect of perceived ethical obligation. These findings suggest that heterogeneous interaction effects may reduce the efficiency of institutional pressures during the initial stage of CER diffusion. Implications for future research and policies are discussed.     

The longitudinal effect of HRM effectiveness and dynamic innovation performance on organizational performance in Taiwan

This longitudinal study examined whether HRM effectiveness and dynamic innovation performance increase the level and growth rate of organizational performance. In 2002 we sent questionnaires to the top 1,000 manufacturing companies in Taiwan, and 181 valid questionnaires were returned. Otherwise, innovation and organizational performance between 2002 and 2005 were measured by research intensity and labor productivity. Latent growth curve modeling methodology was used to analyze the panel data over the 4-year period. Our results indicated that there was significant individual variability in terms of the intercept and slope factors for research intensity and labor productivity. HRM effectiveness was found to be a significant predictor of the intercept and slope factors of labor productivity. Initially, research intensity had a significant impact on the initial status of labor productivity, and an increasing rate of research intensity could significantly affect the growth rate of labor productivity.     

The Network‐Performance Relationship in Knowledge‐Intensive Contexts—A Meta‐Analysis and Cross‐Level Comparison

This study examines the generalizability of the network‐performance relationship across individual and group levels, focusing on knowledge‐intensive contexts. Drawing on a meta‐analytical approach, we synthesize the results of 102 empirical studies to test whether network characteristics such as centrality, brokerage, and tie strength similarly influence the job performance of individuals and groups. Results show that while there are no differences in the direction of the network‐performance relationship across levels, there are substantial differences in magnitude. Individual performance profits more strongly from a high number of direct connections, whereas groups reap higher benefits from brokerage positions. Additional analyses reveal that the network measurement method, tie content, and performance criteria function as moderators of the network performance relationship, but their influence is consistent neither across network characteristics nor across levels. By meta‐analytically comparing and contrasting the network‐performance relationship for individuals and groups, we contribute to multilevel research on networks and organizations. Particularly, we move toward the development of a multilevel homology theory of networks. Implications for theory, practice, and future research are discussed. © 2017 Wiley Periodicals, Inc.     

Longitudinal Meta-analysis

The goal of meta-analysis is to integrate the research results of a number of studies on a specific topic. Characteristic for meta-analysis is that in general only the summary statistics of the studies are used and not the original data. When the published research results to be integrated are longitudinal, multilevel analysis can be used for the meta-analysis. We will demonstrate this with an example of longitudinal data on the mental development of infants. We distinguish four levels in the data. The highest level (4) is the publication, in which the results of one or more studies are published. The third level consists of the separate studies. At this level we have knowledge about the degree of prematurity of the group of infants in the specific study. The second level are the repeated measures. We have data about the test age, the mental development, the corresponding standard deviations, and the sample sizes. The lowest level is needed for the specification of the meta-analysis model. Both the way in which the multilevel model has to be specified (the Mln-program is used) as the results will be presented and interpreted.     

Who does what in enabling ambidexterity? Individual Actions and HRM practices

Abstract

In this paper, we explain how ambidexterity, the simultaneous pursuit of exploration and exploitation, is enabled at the individual level of analysis. Research on ambidexterity has been dominated by theoretical approaches focusing on the organisational level; however, we know little about how ambidexterity is enacted by employees. There is also limited work on the multilevel aspects of individual employee actions, for example, particular roles and specifically the level of seniority of the role. We address these gaps by asking: Which individual actions are undertaken by employees at particular levels of seniority in the organization to enable ambidexterity? In order to answer this question we draw on previous research to construct reliable measures of the individual actions that enable ambidexterity. The hypothesized mediation effect of these individual actions is confirmed on the basis of survey data from 212 employees from a UK-based Professional Service Firm. The findings indicate that senior employees are more likely to use ‘integration’, ‘role expansion’ and ‘tone setting’, whilst employees with specialist knowledge about their clients use ‘gap filling’ to enable ambidexterity. Finally, we draw together these findings with 35 interviews conducted to present the HRM practices which support ambidexterity.     

Fluctuating levels of personal role engagement within the working day: A multilevel study

In this diary study, we examined a theoretical model in which the psychological conditions of meaningfulness, availability, and safety serve as mechanisms through which the work context during discrete situations within the workday influences “state” engagement. We further theorised that a person's “trait” level of engagement would exert cross‐level effects on the state level relationships. Multilevel analyses based on a sample of 124 individuals in six organisations and 1,446 situational observations revealed that meaningfulness and availability (but not safety) mediated the relationships between perceptions of the work context and state engagement. High levels of trait engagement strengthened the within‐person relation between availability and state engagement, yet weakened the within‐person relation between meaningfulness and state engagement, suggesting two different processes may be at play. Overall, the findings advance our understanding of engagement as a multilevel and temporally dynamic psychological phenomenon and promote a contextually based HRM approach to facilitating engagement.     

Ownership,governance, and the diffusion of HRM practices in multinational worker cooperatives: Case‐study evidence from the Mondragon group

Drawing on a qualitative study of one Mondragon multinational worker cooperative (WC) based on longitudinal data and in‐depth interviews, our research evidences the contradictions that internationalisation poses in WCs, both through privileging managerial control at the expense of worker–member participation and through the setting‐up of capitalist subsidiaries in which employees are excluded from ownership and decision‐making. It further shows how institutions, power relations, and interests shape transfer in WCs, supporting the diffusion of certain human resource management (HRM) practices on grounds of efficiency but hampering the implementation of core cooperative practices. We make a threefold contribution: first, to a strand of inquiry focused on the influence of corporate governance on HRM; second, to the field of international HRM by analysing the cross‐national diffusion of HRM practices in WCs; and third, to ongoing debates on the challenges that WCs face when striving to balance the economic and social dimensions in globalisation.     

Regional Inequalities in Consumption Patterns: A Multilevel Approach to the Case of Italy

The main aim of this paper is to evaluate the disparities in the Italian regions on the demand side. In more detail, an attempt will be made to find if the consumption behaviour of Italian households is different in the regions. With this in mind, Istat's 2000 Italian Family Budget data set was analysed. The data in question, which were collected through a two‐stage sample over Italy's 20 regions, contains information regarding the expenses of approximately 23,000 households. In this analysis, both households and regions are considered as units: households are nested in the regions so that the basic data structure is hierarchical. In order to take this hierarchical structure into account, a multilevel model was used, making it possible for parameters to vary randomly from region to region. The model in question also made it possible to consider heterogeneity across different groups (regions), such as stochastic variation. First, regional inequalities were tested using a simple model in which households constituted the first level of analysis and were grouped according to their region (the second level). As a second step, and in order to investigate the interaction between geographical context and income distribution, another model was used. This was cross‐classified by income and regions. The most relevant results showed that there is wide fragmentation of consumption behaviour and, at the same time, various differentiated types of behaviour in the regions under analysis. These territorial differentials become clear from income class and items of consumption.     

Green human resource management: Development of a valid measurement scale

The objective of the study was to develop a valid measurement scale for green human resource management (HRM). Even though the common practices of green HRM have been presented in much of the literature, the previous studies focused only on a small number of functions in integrating environmental management with HRM. Additionally, the measurement of green HRM practices still calls for empirical validation. The two‐stage methodology of structural equation modeling in AMOS was employed for data analysis. Exploratory factor analysis revealed seven dimensions of the construct measured by 28 items. Confirmatory factor analysis confirmed the factor structure. The measuring instruments revealed convergent and discriminant validity. Several model fit indices indicated the model fitness. The study provided supplementary evidence on the underlying structure of the construct that can be valuable to researchers and practitioners in this area.     

How Do Developmental and Accommodative HRM Enhance Employee Engagement and Commitment? The Role of Psychological Contract and SOC Strategies

In the context of the changing workforce, this study introduced two perspectives on HRM and distinguished universalistic developmental HRM from contingent accommodative HRM. We predicted two separate pathways for the effects on two employee outcomes: work engagement and affective commitment. We expected that developmental HRM would universally relate to employee outcomes by rebalancing the psychological contract between the employee and organization into a less transactional to a more relational contract. We also predicted that accommodative HRM would relate to outcomes only when fulfilling specific needs of employees, associated with their selecting, optimizing, and compensating strategies. Results of a multilevel study among 1058 employees in 17 healthcare units fully supported our expectations regarding the role of the psychological contract. Additionally, we found support for the expected roles of selection and compensation, but not for optimization strategy. This study contributes to the literature by demonstrating that HRM relates to employee outcomes through multiple pathways, which can be either universal or contingent.