Bridging knowledge in ambidextrous HRM systems: empirical evidence from hidden champions

Managing the tension between efficiency and flexibility is one of the core challenges that organizations must tackle in order to survive in the global competitive environment. Ambidexterity has been identified in the literature as a key way of managing this tension. Despite the enormous popularity of the concept of ambidexterity, the questions of how HR practices influence exploration and exploitation and support organizational ambidexterity remain underexplored. Drawing on our empirical case studies of three mid-sized ‘hidden champions’ in different high-tech manufacturing industries, we show how an ambidextrous human resource management (HRM) system works. We demonstrate that ambidextrous HRM systems can be regarded as a special type of high-performance work system (HPWS) that facilitates the continuous integration of exploration and exploitation in the pursuit of flexibility and efficiency. In particular, we elucidate how firms apply integrative employment practices and integrative work practices to facilitate collaboration and to create and strengthen a common frame of reference that fosters knowledge integration. Finally, setting up an ambidextrous HRM system supports the complementary interplay between a common frame of reference and a firm's ability to integrate knowledge in order to manage the conflicting demands of exploration and exploitation.     

Unwrapping the HRM bundle: HR system design in an Irish power utility

This article considers the way in which new HR systems were designed for three power stations within Ireland. The study provides insights into how choices are made about which practices are included in or excluded from the HR bundle and considers the factors that can lead to or prevent the successful implementation of new HR systems. The research suggests that all HR practices are not necessarily of equal importance in the bundle that comprises an HR system. Instead, it may be useful to view such a system as comprising both core and ancillary HR practices and as dependent on the existence of appropriate HR processes if it is to operate successfully. In addition, the study suggests that new HR systems may fail because insufficient attention is paid to the impact of ‘deadly combinations’ (Becker et al., 1997 Becker, B., Huselid, M., Pickus, P. and Spratt, M. 1997. HR as a Source of Shareholder Value. Human Resource Management, 36(1): 389–447.  [Google Scholar]) and that changing an existing system will require the elimination of old practices before new practices can be introduced successfully.     

Managing human resources in dynamic environments to create value: role of HR options

HR options as firm investments in human assets in uncertain environments to create the capability to flexibly respond to future contingent events have been recognised as valuable. However, the black box of causal interlinkages between environmental uncertainties, HR options and firm performance is yet to be explored in strategic HRM literature. Based on the data obtained from 108 IT software firms in India, this study empirically explores these linkages using a multi-level causal model. The results suggest that the use of HR options positively mediates the effects of environmental uncertainties on firm performance. The mediating influences of different types of HR options, used by the firms to manage various types of uncertainties affecting their human assets, on the operational and the financial performance of the firms are found to be different. Implications of findings of the study for managing investments in human assets under uncertainty have been discussed.     

High-commitment HRM system,HR capability,and ambidextrous technological innovation

Technological innovation is becoming an increasingly significant driving force of firm competitiveness; however, only a few scholars have attempted to investigate the specific relationship between technological innovation and human resource (HR). In this study, we test the relationships among high-commitment human resource management (HCHRM) system, HR capability and ambidextrous technological innovation, as well as the mediating role of HR capability in the relationship between the other two. For this purpose, we derive HR capability based on two dimensions: (a) factors (skills vs. behaviors) and (b) nature (component vs. combinative capability). Juxtaposing these dimensions enables us to generate the following four elements of HR capability for ambidextrous technological innovation: (a) T-shaped skills (component skills), (b) technology brokering (combinative skills), (c) personal initiative (component behaviors), and (d) cooperation (combinative behaviors). Empirical results based on data collected from the HR and technology planning managers of 105 corporate research and development centers indicate that HCHRM positively affects HR capability and ambidextrous technological innovation. In addition, we find that HR capability fully mediates the relationship between the HCHRM system and ambidextrous technological innovation. We discuss theoretical contributions and practical implications of these findings.     

Options‐based HRM,intellectual capital,and exploratory and exploitative learning in law firms' practice groups

The current study intends to uncover the strategic contribution of human resource management by introducing a unique construct of options‐based (vis‐à‐vis project‐based) HRM and examining its links to intellectual capital and exploratory and exploitative learning in the context of law firms' practice groups. Empirical results show that options‐based HRM is positively related to the practice group's explorative and exploitative learning. The intellectual capital mediates the relationships between options‐based HRM and the practice group's learning for exploration and exploitation. This study makes a valuable contribution to the HRM literature by establishing the mechanisms by which HRM enables organizational learning and extending the scope of HRM research to professional service firms. Our findings also provide valuable implications for the literature of organizational learning. © 2012 Wiley Periodicals, Inc.     

HRM systems between control and commitment: occurrence,characteristics and effects on HRM outcomes and firm performance

In the literature, it is often assumed that traditional, control‐oriented HRM systems are increasingly being replaced by commitment‐based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may depend on an organisation's external and internal context, and neither control nor commitment HR systems are without disadvantages. Thus, the empirical validity of this claim is not clear ex ante. This paper analyses the empirical diffusion and determinants of control and commitment HRM systems in Germany as well as their impact on HRM outcomes and firm performance. The findings indicate that between the two extreme forms of high‐control and high‐commitment HRM systems, there are two hybrid forms (long‐term‐oriented control system and regulated commitment system) that combine elements of both ‘pure’ systems. Commitment HRM systems outperform the high‐control HRM system concerning many HRM outcomes and firm performance measures. However, in direct comparison, the high and the regulated commitment HRM systems do not show substantially different outcomes, indicating that there is no one best way.     

A social institutionalist perspective on HR diffusion: historical and cultural receptivity to HRM in a post-communist context

This research considers cross-national diffusion of international human resource management (IHRM) ideas and practices by applying an emergent frame of sociological conceptualisation – ‘social institutionalism’ (SI). We look at cultural filters to patterns of diffusion, assimilation and adoption of IHRM, using Romania as a case study. The paper considers the former Communist system of employment relations, suggesting that through institutionalisation former ways of thinking have a residual influence on definitions and practice of people management in post-Communist Eastern Europe. The paper provides a new perspective on HRM by discussing the value of SI as a general model for understanding cross-cultural receptivity to HR ideas, sensitising the HR practitioner and academic to institutionalised culture as a historical legacy influencing absorption of international management ideas.     

HRM Systems for Knowledge Workers: Differences Among Top Managers,Middle Managers,and Professional Employees

This theoretical study contributes to the debate in the field of strategic HRM on whether HRM systems should differ across employee groups within the firm. It explores differences in the efficacy of two HRM systems—high‐involvement HR and internal labor market systems—across top management teams, middle managers, and professional employees. In addition, it examines factors that may prevent the adoption of effective HRM systems for these groups of knowledge workers. A model is proposed depicting how four job‐level moderators influence the HRM‐performance relationship and how these moderators apply to each of the three employee groups. Short‐term performance pressures and favoritism in staffing are proposed as factors that may hinder the adoption of effective HRM systems. Finally, HRM systems for different employee groups are classified based on their gains potential and barriers to implementation, yielding four categories of strategic HRM activity metaphorically labeled low‐hanging fruits, high‐hanging fruits, peanuts, and barren land. © 2013 Wiley Periodicals, Inc.     

What role do HR practitioners play in developing countries: an exploratory study in an Indonesian organization undergoing major transformation

In spite of the abundance of research on HRM in developing countries, there is a dearth of knowledge of what human resource (HR) practitioners actually do in developing countries. With the aid of Conner and Ulrich's widely reported framework for HR roles, we investigated the roles played by HR practitioners in a state-owned oil and gas company with a workforce of 15,000 employees. The study was based on a survey of 140 HR and line managers in the company. The main finding of the study is that even in a developing country such as Indonesia, Conner and Ulrich's (1996) model of HR roles has some validity. Our findings indicate that all the four roles are practised by HR practitioners in the company. The finding lends support to similar studies in the USA (Wright, McMahan, Snell and Gerhart 2001; Simpkins 2005), the UK (Caldwell 2003), Denmark (Lemmergaard 2009), Finland (Antila 2006) and Lithuania (Zuzeviciute and Margarita 2010). Another significant feature of the study is the revelation that HR practitioners play more strategic roles than operational roles. This is entirely unexpected. The theoretical/research and practical implications of the findings have also been 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.     

Standardize or Customize: The Interactive Effects of HRM and Environment Uncertainty on MNC Subsidiary Performance

This study examines the impact of customizing (as opposed to standardizing) human resource management (HRM) practices on subsidiary performance in multinational corporations (MNCs). We examine how this relationship is influenced by environmental uncertainty. Hypotheses were tested using data from 92 subsidiaries of a large MNC operating in 27 countries. The results showed an interactive relationship between the customization of HRM practices and subsidiary environmental uncertainty on both financial (net profit) and nonfinancial (customer satisfaction) objective measures of subsidiary performance. The results of this study provide important empirical insights for researchers and practitioners into how HRM can be best configured to drive multiple performance outcomes for MNC subsidiaries. © 2014 Wiley Periodicals, Inc.     

HRM and organizational performance in northern and southern Europe

This article aims to extend understanding of the firm-level impact of strategic HR practices on organizational performance. Adopting a contingency approach, it develops a structural model that considers direct and indirect influences of market growth, business strategy formalization and HRM centrality and practices on organizational performance in Europe. The study uses a comparative approach, revealing differences between northern and southern Europe. Clear differences appeared between the two clusters in the HR policies and practices correlated with higher performance, thus indicating that the link between HRM and performance may be different in different geographies.     

An exploration of the HRM values of Chinese managers working in Western multinational enterprises in China: implications for HR practice

This paper qualitatively explores the nature of human resource management (HRM) values of local Chinese managers working in Western-based multinational enterprises in China and also considers how these values are associated with preferences for HR practices. The study involves the use of repertory grid interviews with 36 local Chinese managers. The study shows that interviewees reflected a high level of assimilation and internalization of many Western HRM values. Interviewees also retained many traditional Chinese values, thus highlighting the role of institutional and cultural forces on HRM. However, among these local managers, there was clear decline in some traditional Chinese values, such as ‘harmony’ and ‘virtue’. A further interesting finding was the co-existence of paradoxical values of collectivism and individualism among the managers. Analyses of repertory grid data and interview comments also highlight that preferences for HR practices is associated with these underlying HRM values.     

HR flexibility and firm performance: analysis of a multi-level causal model

Human resource flexibility as a construct, how it develops, and its effect on firm performance have not received adequate attention in strategic HRM literature in spite of their obvious importance in today's dynamic competitive environment. Based on a study of 98 manufacturing and 103 service firms in India, this paper addresses these issues by developing and testing a multi-level model that attempts to explore the ‘black box’ of the interlinkages between the various components of HR flexibility and firm-level human, operational, and financial outcomes. The results suggest that a certain set of ambidextrous HR practices constitute a distinct dimension of HR flexibility, beyond the dimensions of flexibilities of skill, behaviour and HR practices as already identified in the existing literature. Evidences from both manufacturing and service sectors support the notion of HR value chain that suggests that HR system has a direct impact on firm-level HR outcomes which are most proximal, and its effects on increasingly more distal operational and financial outcomes are mediated by HR outcomes that it produces. Another important finding is that HR practices as a system have both direct and indirect (mediated by behavioural flexibility) effects on firm-level HR outcomes. Existence of significant direct effects highlights the important role that HR practices play as a structural mechanism in achieving superior firm performance.     

Applying real options theory to HRM: an empirical study of IT software firms in India

Environmental uncertainties can impact the market value of a firm's human assets both positively and negatively, and make return on human assets uncertain over time. However, the strategic human resource management (SHRM) literature has so far focused almost exclusively only on the upside value of human assets of a firm. Real options theory can provide the process heuristics as well as the economic logic for guiding investments in human assets to create sustainable market value for firms operating in uncertain environments. In spite of the growth in popularity of the real options approach, no meaningful progress, however, has been made towards application of this approach to HRM. This study, using data from 108 IT software development firms in India, seeks to address this gap and make three important contributions to the SHRM literature: (1) operationalise the concept of HR options by identifying the HR practices that possess option value; (2) investigate how use of HR options affects firm-level performance; and (3) develop and test a causal model that links the various types of HR options that firms use to exploit uncertainties faced by them with the firm-level operational and financial outcomes. The results support the central hypothesis of the article that use of HR options by firms operating in uncertain environments would have positive impact on their operational and financial performance. Significant differences were observed in the nature of linkages between different types of HR options used to address different types of uncertainties, and the operational and financial performance of the firm.     

The role of HR managers in international mergers and acquisitions: a multiple case study

The article departs from the existing research treatment of expatriation as an individual-level phenomenon, and looks at the expatriation of work teams. We examine the performance management of expatriate teams brought in from 17 independent organizations to work on a new-product development project. We find that the teams faced diverse stakeholder expectations and that these stakeholders' expectations were a source of tension for the teams. The teams responded by adopting performance management strategies that tended to prioritize their respective home organizations' expectations. We discuss the vulnerability of contextual performance and the relative insignificance of national cultural differences in this expatriation context. We propose practical considerations and an agenda for further international human resource management (IHRM) research on expatriate teams.     

Top management: the missing stakeholder in the HRM literature

Abstract

Despite the significant influence that top management exerts on different aspects of people management, it remains the missing stakeholder in the HRM literature. In this paper, we take stock of previous research, and conclude that it is scarce and lacks consolidation. On the basis of our findings, but also thinking in terms of what is still missing, we develop a conceptual framework that may guide further research, advocating for the need to consider co-evolutionary approaches in an attempt to integrate selection and adaptation perspectives, as well as multi-level and multi-actor factors. Future work should systematically address and distinguish top management characteristics from top management agency and link these more clearly to a diversity of HRM dimensions. By doing so, scholars will help to firmly incorporate the role of top management in the research agenda of HRM and pursue different avenues that can be scientifically sound as well as practically relevant.     

The HR ecosystem framework: Examining strategic HRM tensions in knowledge-intensive organizations with boundary-crossing professionals

In this article, we use Snell & Morris' (2021) new HR ecosystem framework to empirically examine strategic fit and alignment tensions for knowledge-intensive organizations and professional knowledge workers. Rich data were collected through in-depth interviews with 75 members of faculty engaged in knowledge-intensive work for Business and Management Schools (B&M), and the analysis of strategy documents. The application of the framework enables us to contribute to dynamic capabilities theory and SHRM in four ways. Firstly, drawing on the findings, we propose an adapted HR Ecosystem framework for analyzing knowledge-intensive organizations, which incorporates tensions across the four subsystems of an HR ecosystem (strategy, capabilities, composition, and cultures). These tensions are shaped by interactions within and between levels (meso, macro and micro) and ecosystems. Secondly, our findings underscore the need for knowledge-intensive organizations to engage with a plurality of collaborative and competing internal and external stakeholder interests, including those of knowledge workers who constitute key organizational stakeholders. Thirdly, our analysis shows how the views and behaviors of internal organizational stakeholders are affected by ecosystem dynamics within and beyond the physical boundaries of an organization. Fourthly, we reveal how conflicting organizational cultures connect with other HR ecosystem subsystems to constrain collegialism and cohesion. By evidencing how knowledge-intensive organizations are in a constant flux of alignment and misalignment, the article demonstrates the value of the HR ecosystem framework in examining and informing SHRM in organizations in other industries.     

The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India

Abstract

Recent studies have started exploring the linkages between organisational ambidexterity (OA) and HRM practices. OA is noted as a critical resource in achieving product, process, and business model innovations. By adopting an inductive case study of a US MNC subsidiary in India, we found empowerment-focused HRM practices were being used for exploration of new ideas and efficiency-focused HRM practices were adopted for the exploitation of the organisation’s existing strengths. Empowerment-focused HRM practices created a culture of openness and risk-taking, which facilitated the creation of an ambidextrous context. Further, ambidextrous learning was moderated by the adoption of a managerial/leadership style that focused on ‘mirroring competencies’ between the parent operation and its subsidiary. HRM practices were aimed at developing behaviours that valued the team-based co-development of graphic processor designs by means of a ‘parallel processing’ approach to product development. Additionally, the HRM practice of offering intrinsic employee rewards and both informal and formal training facilitated OA in delivering product innovation. This study represents a pioneering exploration of multiple levels of analysis (individual, functional, and organisational) for product innovation through the lenses of ambidexterity, innovation, and HRM practices. The implications for both theory and practice are also discussed.