Strategic agility and human resource management

This paper serves as an introduction to this special issue on strategic agility and human resource management. The paper starts with a summary review of the current state of the strategic agility literature followed by introduction of the five articles in the special issue. The paper also highlights the implications of the findings for academics and practitioners.     

Fostering strategic agility: How individual executives and human resource practices contribute

Strategic agility, as an observable organization performance outcome, results from the behaviors and skills of the organization's managers in taking and implementing strategic actions. So, the key to strategic agility is not just analytical strategy from superior minds or thoughtful and effective organizational design but the set of management practices, behaviors, skills, values and beliefs that animate the senior management of an organization in making and implementing strategic commitments. In particular, earlier research suggests that three vectors of forces enable strategic agility: strategic sensitivity, resource fluidity and collective commitment. Taking these as a basis, we identify specific individual behaviors, and analyze and review how skills, and practices driving these behaviors, and their supporting HR practices affect the strength of each vector, and of the forces that provide energy in fostering strategic agility. This provides a profile of skills and capabilities individuals need in order to best contribute to the strategic agility of their organization and of HR practices to put in place.     

Gaining competitive advantage through human resource management practices

Critical to a corporation's growth and prosperity is gaining and retaining competitive advantage. Although corporations may pursue many paths to this end, one that is frequently not recognized is capitalizing on superior human resource management. Currently, many companies recognize the growing importance of their human resources, but few are conceptualizing them in strategic terms—in ways to gain a competitive advantage. As a result, many companies forego the opportunity to seize competitive advantage through human resource practice initiatives. However, there are a few companies that do not forego the opportunity. We use them as examples to show how to systematically develop such advantages via a “target/thrust matrix.” The end results of this matrix have significant implications for both corporate strategy and personnel and human resource management.     

Theoretical implications from the case of performance-based human resource management practices in Japan: management fashion,institutionalization and strategic human resource management perspectives

In Japan, a new type of human resource management (HRM) practices called ‘performance-based HRM practices’ (seika-shugi in Japanese) emerged in the 1990s, and has been adopted by many Japanese firms. In this paper, I illustrate how these type of practices emerged as a management fashion, diffused across a large number of Japanese firms, and became institutionalized in the Japanese business context; and discuss the relationship between performance-based HRM practices and firm performance. This illustration is used to develop a theoretical framework to better understand the relationship between HRM practices and firm performance by integrating theories of management fashions, institutionalization and strategic HRM. Suggestions for future research are also discussed.     

Exploration,exploitation and human resource management practices in cooperative and entrepreneurial HR configurations

Human resource (HR) practices for selection, performance appraisal, performance–compensation linkage and training are found to be less formalized in entrepreneurial HR configurations (exploratory) than in cooperative HR configurations (exploitative). Although less formalization may support more flexibility and improvisation, it was found to have the disadvantage of reducing process transparency, developmental feedback, performance–compensation linkage strength and the amount of training available. These findings are consistent with theories of exploration and exploitation, with their extensions to human resource management and leadership, and the view that HR systems and practice should be varied in light of the organizational processes to which they are being applied.     

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.     

An integrative framework for understanding cross-national human resource management practices

Currently, debate in the area of cross-national human resource management (HRM) suggests that both “culture-bound” and “culture-free” factors and variables are important determinants of HRM policies and practices. HRM is presented as being context-specific and it is argued that with the growth of new markets world-wide, and increased levels of competition and globalization of business, there is a strong need for more cross-national HRM studies. However, the literature shows the absence of an integrated framework, which can help to highlight the different role that context-specific facets of HRM practices play. The nature of different determinants in different national and regional settings is rarely analyzed. This paper develops an integrated framework. It delineates the main distinctive facets associated with national factors, contingent variables, and organizational and human resource (HR) strategies and policies, that may be used to evaluate cross-national comparative HRM policies and practices.     

Social responsibility paradox of small business human resource management practices

This article investigates social responsibility (SR) and human resources management practices focused on internal stakeholders, namely employees, in a context of small business. SR is defined as ‘obligations to constituent groups in society other than stockholders and beyond that prescribed by law and union contract’ Jones (1980, pp. 59–60). Numerous studies have addressed the economic significance and effects of small business but contributions to HR within small businesses have remained relatively unexplored in contemporary SR literature. A case research methodology employing theoretical replication was used to select 10 small businesses across industry sectors. These were chosen with the assistance of the Hunter Business Chamber, Australia. A semi-structured face-to-face interview with the owner of the business who also functioned as the manager was undertaken using a research instrument comprising eight qualitative and open-ended questions. The questions specifically addressed the small business owner's HR priorities, motivations, and financial contribution to SR. This research is designed to fill a gap that exists in the literature and can be considered innovative and timely given the growing interest by society in SR. The principal objective of this research is to broaden the understanding of small business by addressing the research problem: ‘Are human resource management practices of small businesses socially responsibility or market driven?’     

Applying a systems approach to human resource management

One reason why organizational improvement efforts often fall short of expectations is that they are rarely systematic. This article describes both the theory and practice of improving human resource management (HRM) using an example from McDonnell Douglas Corporation, in which an integrated systems approach was applied. A model of various, specific HRM initiatives is presented. The plan for undertaking these initiatives is also described. A key factor in the success of this approach is in changing the mental models that executives hold regarding how organizations really function. A major part of this shift is appreciating that organizational improvement initiatives are not additive but interactive. © 1999 John Wiley & Sons, Inc.     

Antecedents and consequences of dimensions of human resource management practices in Vietnam

The purpose of this study is to extend the empirical research concerning the impact of human resource management (HRM) practices on organizational effectiveness into the context of developing and transitional economy countries. From a survey of 137 cross-sector companies, it was discovered that there are five dimensions of HRM practices currently in use in Vietnam. Variation in the application of these dimensions can be partly traced to several organizational characteristics, but most salient is the perception of management on the value of human resources. In some dimensions, this variation constitutes a source of the difference in the perceptual company performance. These findings break new ground to propose a process for implementing HRM practices in Vietnam.     

The influence of collectivist human resource management practices on team-level identification

In this study, we investigate how a culturally specific human resource management (HRM) approach influences employees' relational identification at the team level, which may in turn influence the behavior of team members. Given the boundary condition of a collectivistic societal culture, collectivist HRM helps improve employees' team-level identification and their performance. Collecting empirical data from firms in different regions of China, we found that the collectivism-oriented HRM approach has a positive effect on employees' team-level relational identification. This team-level identification, in turn, can significantly improve the job satisfaction of team members and reduce their turnover intention. We conclude with a discussion of the implications of our findings for academic researchers and practitioners.     

Human resource management practices to improve quality: A case example of human resource management intervention in government

This article describes the quality approach to management in government and contrasts it with the classic, often more bureaucratic, approach. It places particular focus on Project Pacer Share, a government total quality management effort underway at McClellan Air Force Base where, using quality tools and techniques, major reforms in the United States Civil Service System and human resource management are being tested. Specific human resource management initiatives that need to be undertaken to support organizationwide quality performance are presented.     

Leveraging entrepreneurial ecosystems as human resource systems: A theory of meta-organizational human resource management

Entrepreneurs require human resources to establish and scale their ventures; however, constraints often prevent entrepreneurs from investing in formal human resource systems. How entrepreneurs overcome human resource challenges by leveraging their entrepreneurial ecosystems as informal inter-organizational talent management systems has been overlooked by scholars. We propose a model of entrepreneurial ecosystem human resource management, theorizing that ecosystem participants collectively perform the human resource management function for entrepreneurship communities. Drawing from economic rents theory, we explain how entrepreneurial ecosystems encourage a form of meta-organizational human resource management that allows ecosystem participants to coordinate talent acquisition, learning and development, performance management and rewards, and retention. Coordinated entrepreneurial ecosystems improve entrepreneurial performance by sourcing talent, onboarding selected members, enculturating ecosystem values, developing entrepreneurial skills, and retaining human resources, which in turn generates rents. We discuss how our theory catalyzes research at the HR and entrepreneurial ecosystems interface and reveals insights for practitioners.     

Clarifying the construct of human resource systems: Relating human resource management to employee performance

Strategic human resource management researchers have strongly advocated a system perspective and provided considerable evidence that certain systems of human resource practices have a significant impact on individual and organizational performance. Yet, challenges of understanding the construct of human resource systems still remain in the literature. Specifically, few efforts have been made to explicate the internal fit in human resource systems referring to how the practices in human resource systems work together. For the purpose of clarifying human resource systems construct, we review the components of human resource systems and delineate how the parts of human resource systems work together to influence employee performance. Theoretical and empirical implications for future research are also discussed.     

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.     

Configurations of human resource management practices: a model and test of internal fit

This study examined human resource management (HRM) configurations. A typology consisting of four bundles of aligned HRM practices (labelled the bureaucratic, market, professional and flexibility bundle) linked to organizational structures was developed. Support for the proposed ideal-typical bundles was found in an assessment by a panel of experts. Next, the distance between the ideal types and actual bundles of HR practices was assessed for 175 organizations. For each, senior HR managers' ratings of HRM practices and CEO ratings of outcomes were obtained. Support was found for two of the four proposed types and about one-third of the firms showed some fit with one of these two types. The ‘fit in general hypothesis’ (i.e. the closer an observed HR bundle resembles any of the ideal types, the higher organizational performance) did not receive support. However, fit with a specific type of bundle (the professional bundle) did relate positively to outcomes. Organizations with observed HRM practices fitting the professional bundle score significantly higher on measures of firm performance, employees' going beyond contract, and firm innovativeness.     

High-involvement practices in human resource management: concept and factors that motivate their adoption

Using data on 250 Spanish firms, we examine the incidence of high-involvement practices and investigate what variables are associated with the adoption of these practices. Particularly, we analyse the influence of size, age, competitive advantage, activity sector, the existence of a recent crisis, culture, leadership style and the competitiveness of the environment on the adoption of high-involvement work practices. With all this, we try to offer an exploratory view of nature of the contexts that condition the adoption of such practices, with the aim of motivating future research more thoroughly.