The relationship between human resource management practices,business strategy and firm performance: evidence from steel industry in Taiwan

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.     

How Japanese manufacturing firms align their human resource policies with business strategies: testing a contingency performance prediction in a Japanese context

This study examines the interaction effects of business-level strategy and HRM policies upon performance among Japanese manufacturers, in response to the current debate around the contingency fit proposition in the field of strategic human resource management (SHRM). Specifically, it was hypothesized that the three generic strategic types (cost reduction, differentiation (innovation), and quality enhancement) would moderate the relationship between particular HRM policies and the performance of Japanese manufacturing firms. The results, based on a sample of 312 Japanese manufacturers operating in the domestic environment, reveal the existence of links between appropriate strategy and HRM policies in predicting performance, providing strong support for the proposition of contingency fit from SHRM theory. The findings are used to discuss how Japanese manufacturers can align their HRM policies with business strategies to increase manufacturing performance. Limitations of the study and directions for future research are also considered.     

Organizational context and human resource management strategy: a structural equation analysis of Hong Kong firms

Previous studies to explain why companies utilize particular human resource management (HRM) strategies have not adequately addressed the influence of contextual variables such as size, location, ownership, competitive pressure, technological change, age and growth. In this study, we investigate the extent to which these contextual variables are related to HRM strategy in seventy-six private-sector firms located in Hong Kong. Our analysis uses structural equations to examine the relationships among contextual variables and HRM strategy to develop and retain managers. The results show that contextual variables have both direct and indirect effects on an organization's HRM strategy. The indirect effects occur through the top management involvement of the HR function within an organization. Use of a human capital development HRM strategy reduces organizational uncertainty about having an adequate supply of managers to meet firm objectives. Contrary to our expectation, in Hong Kong firms, greater reliance on internal development and promotion tends to increase uncertainty and greater competition tends to reduce training investment. Both of these unanticipated relationships may reflect the high mobility of managers peculiar to the Hong Kong labour market.     

Multinationals,national business systems and HRM: the enduring influence of national identity or a process of 'Anglo-Saxonization'

This paper discusses the 'nationality effect' in the management of HRM by multinational companies (MNCs). After reviewing relevant literature in the institutionalist tradition and on 'national business systems', it assesses the elements of national environments that are most likely to influence MNC behaviour. It explores the tensions arising between the requirements of 'globalized' operations and the characteristics MNCs have adopted from their home environment. It is suggested that MNCs respond to such tensions by adopting various adaptation strategies, the most important of which may be termed 'Anglo-Saxonization': a convergence of MNC behaviour around a model typical of highly internationalized British or US MNCs. The argument is illustrated by findings from two German case studies, one of a large manufacturer, the other of a major bank; evidence is found of the Anglo-Saxonization of international HRM in these companies, but it appears to be taking place in a distinctively German manner.     

Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line

This paper examined the relationship between multinational corporations' global management strategies and the resulting international human resource practices. Four global strategies, which vary in their extent of global integration and local responsiveness, were examined (ethnocentric, regiocentric, polycentric and geocentric). Data from international human resource professionals in forty-six companies generally supported the hypothesis that HR practices (recruitment, selection, socialization) varied by global strategy. In particular, strategies varied especially between the ethnocentric and geocentric companies. These strategies were further found to be related to a composite Multinational Corporation Success Index of economic variables (return on capital, sales growth, return on equity, profit margin). Companies which had ethnocentric strategies were found to be less successful than companies operating under any of the other three strategies. Findings suggested that local responsiveness should be incorporated into the global strategy of multinational companies. Recommendations for international human resource practices based on these results have been given.     

Human resource management systems and organizational performance: a test of a mediating model in the Greek manufacturing context

This paper investigates the relationship between systems of HRM policies and organizational performance. The research is based on a sample of 178 organizations operating in the Greek manufacturing sector. A mediation model is tested to examine the link between HRM and organizational performance. The results of this study support the hypothesis that the relationship between the HRM systems of resourcing–development and reward–relations, and organizational performance, is mediated through the HRM outcomes of skills and attitudes. The paper not only supports the theory that HRM systems have a positive impact on organizational performance but also explains the mechanisms through which HRM systems improve organizational performance.     

HR research in the Netherlands: imitation and innovation

In this paper we present an overview of Dutch HRM Research in the last decade, based on a content analysis of academic journals in this area. Also included is a comparison between UK and USA research, on the one hand, and Dutch research, on the other. Looking back, we conclude that HRM research in the Netherlands has had a relatively institutional character and has been less focused on HRM activities in a narrow sense. Dutch HRM researchers have paid less attention to the strategic positioning of HRM, to the redesign of HRM tools in the area of through-flow and performance management (appraisal, reward systems, feedback mechanisms) and to the monitoring of the effects of HRM. In this way HRM research has not reflected the key HRM issues occupying the attention of practitioners. From more recent patterns, however, we expect Dutch HRM research increasingly to reflect managerial concerns. This does not imply full convergence with US patterns, especially given the Dutch traditions in industrial relations and personnel management. The challenge for Dutch research on HRM is to find the right balance between market forces and institutional arrangements, including a fair position for the workers; this will have to do justice to the long established tradition of industrial democracy and consultation practices among the various stakeholders.     

Environmental strategies as automorphic patterns of behaviour

This article is based on a study of three companies, i.e. Volvo, The Body Shop and Tarkett, focusing on their development of environmental strategies. Using a drama metaphor, the empirical case indicates in detail how Tarkett has been strategically able to handle increasing environmental demands. The study also demonstrates that Tarkett depends on itself in its relationship with other actors in its organizational field, and that this influences the interplay between the actors. The article concludes that the three studied companies have adopted different strategies for managing environmental demands, and that the strategy each has used involves a specific sense of ‘dependency’. The strategies are explained by institutional automorphism, which means that the companies imitate themselves, employing strategies similar to those they have previously used when tackling other changes in their organization fields. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

When companies improve the sustainability of the natural environment: A study of large U.S. companies

In light of the call for companies to abandon current approaches to environmental management, this study adds to the environmental strategy literature and uses the evidence of competitive dynamics among companies to identify a mechanism by which companies invest in proactive environmental strategies and thereby improve the sustainability of the natural environment. An examination utilizing fixed effects regressions on a sample of large U.S.‐based companies reveal that even after controlling the number, environmental and financial performance of leading (environmental) companies, laggard (environmental) companies are more likely to invest in proactive environmental strategies when their leading peers display higher sustainability orientations. Neither the expectation of government regulation nor social movement pressure was found to be influential in this relationship. Therefore, the future dominance of companies' investments in the sustainability of the natural environment will be driven by companies themselves as long as competitive advantages are expected.     

The Underpinnings of 'Bureaucratic' Control Systems: HRM in European Multinationals

This paper explores the relationship between the operation of management control systems and the mobilization of power resources in multinational companies. It argues that formal 'bureaucratic' controls depend for their effective operation on informal systems and the power relations they embody. In particular, bureaucratic control systems rely inherently on the deployment of 'social' control mechanisms relating to the creation of common value systems, understandings, and expectations about the 'rules of the game' among corporate actors. The argument is illustrated by material from case studies of HRM in British and German multinationals.     

Sustainable HRM strategies and employment relationships as drivers of the triple bottom line

This paper aims to develop a conceptual framework capable of analysing the contributions made by strategic human resources management (SHRM) to firm sustainability and competitiveness. Specifically, we identify different sustainable corporate strategies and the way in which they are supported by coherent sustainable HRM strategies. We propose different sustainable employment relationships considering two dimensions: inducements offered by an organisation and expected employee behaviours in order to comply with sustainable HRM strategies. All the above also necessitates a system of HRM practices (content of the employment relationship) that should be well defined and oriented towards sustainability. Accordingly, we suggest associations of specific systems of HRM practices, depending on the type of employment relationship and sustainable HRM strategy, in order to promote the expected ‘Triple Bottom Line’, and which also improve firm competitiveness.     

The influence of human resource management on knowledge sharing and innovation in Spain: the mediating role of affective commitment

The aim of this paper is to explain and to test empirically how human resource management (HRM) practices contribute to knowledge sharing and innovation through employees' affective commitment. Results show that HRM practices do not influence knowledge sharing in a direct way, but they do have a positive effect when affective commitment mediates the relationship. We also find a positive relationship between knowledge sharing and innovation performance. That is, HRM practices contribute to knowledge creation and innovation through the generation of the affective commitment necessary for employees to be willing to share their knowledge. The relationships identified have been tested by applying structural equation models to a sample of 87 R&D departments of Spanish innovative companies.     

Employees as Active Consumers of HRM: Linking Employees’ HRM Competences with Their Perceptions of HRM Service Value

Recognizing the importance for companies of having high‐quality employment relationships with employees, previous studies have sought to explain the variability in employees’ perceptions of HRM service value. However, most of these studies view employees as inactive in employment relationships and, therefore, do not consider whether employees’ own attributes affect their perceptions of HRM service value. In accepting the alternative notion that consumers create value “in use,” the current study regards employees as active consumers of HRM practices, and so examines the extent and way in which employees’ HRM competences (i.e., knowledge, skills, and abilities) explain the variability in HRM service value. Based on data collected from 2,002 employees in 19 companies in the Netherlands, a positive relationship has been found between employees’ HRM competences and their perception of HRM service value, albeit one that is mediated by the perceived quality and nonmonetary costs of HRM services. The main implication of our findings is that employees should be seen as active agents in employment relationships who, through coproducing and consuming HRM services as well as leveraging their knowledge and skills, influence the value of HRM services and have the potential to increase or undermine the outcomes of the employment relationship. © 2015 Wiley Periodicals, Inc.     

Variability in HRM implementation among line managers and its effect on performance: a 2-1-2 mediational multilevel approach

Over the last few decades, a substantial body of research has examined the relationship between human resource management (HRM) and performance. However, little attention has been given to the implementation of HRM, although an HR policy can be implemented in various ways within an organization. In addressing recent calls in the literature to examine this issue more closely, we study the role of line managers in implementing HRM and the influence of employees' perceptions of HRM. In a multilevel study of 315 employees and 41 line managers drawn from various work-units of a Dutch municipality, we tested whether HR practices, as implemented by line managers, affect employees' perceptions of HRM and whether these perceptions in turn relate to perceived unit performance. The analysis shows that implemented HR practices differed between work-units. More specifically, our study shows that these differences can be explained by a line manager's leadership style. Moreover, our findings indicate that employees' perceptions of the HR practices implemented mediate the relationship between the HR practices implemented by line managers and perceived unit performance. These findings contribute to our understanding of how HRM affects performance.     

Hybridization: striking a balance between adoption and adaptation of human resource management practices in French multinational corporations and their Tunisian subsidiaries

International management research has tended to approach the transfer of human resource management (HRM) practices by examining the one-way transfer from parent companies to their subsidiaries, their adaptation to the subsidiaries’ local context and, more recently, the reverse transfer of HRM practices from subsidiaries to their headquarters. This article aims to analyse the transfer of HRM practices from headquarters to their foreign subsidiaries through the process of hybridization. Although numerous studies focus on the transfer of HRM practices between economically developed countries or from these countries to transitional economies, few have considered French multinational corporations (MNCs) operating in ex-colonized countries. This paper addresses the ways in which the HRM hybridization process is implemented in two French subsidiaries operating in Tunisia. It focuses on the dual perspectives of managerial staff at headquarters and subsidiaries as well as shop floor employees in the subsidiaries. A range of HRM practices (recruitment and selection, compensation, performance appraisal and career management) is analysed from their transfer to their reinterpretation. The results show the importance of the concept of hybridization on HRM practice transfer through a multi-level analysis of the strategies used by various stakeholders during the hybridization process. The paper also provides useful insights into the factors of hybridization that may foster or inhibit the transfer and adoption of HRM practices by foreign subsidiaries. These include the relational context, the type of practices transferred, the interests of different professional categories and their social interactions. Based on these factors, several hybridizations are identified. The study points out the specificity of the Tunisian context and shows that institutional factors have less influence on the transfer of HRM practices in ex-colonized countries than cultural factors that have a transversal influence on different HRM practices. Key cultural factors constraining the transfer include emotional relationships and interpersonal trust. Moreover, the international transfer of HRM practices from MNCs to ex-colonized transitional countries requires taking into account the post-colonialism and fascination effects.     

Strategy matters: strategic positioning and performance in the education services sector

• The present study explored the strategic positioning behaviour of Australian educational services institutions to see whether their choice of strategy impacted their competitiveness in international markets. A sample of schools, colleges and universities, were asked which of Porter's generic positioning strategies they used. Correspondence and cluster analysis were used to examine these relationships and discriminant analysis was used to see whether there was a relationship between strategy choice and performance. The results showed institutions that lacked a coherent strategy did not perform well, highlighting the importance of educational administrators to develop clear and coherent strategies that position their offerings effectively to targeted market segments. Indeed, a failure to apply strategic principles may risk the long term sustainability of the institution.

Copyright © 2007 John Wiley & Sons, Ltd.     

How strategic is HRM?

This study of 115 subsidiaries of Fortune 500 companies indicates that a majority had integrated HRM and strategic planning systems within their organizations. HRM issues were explicitly discussed in strategic plans; HRM executives were involved in the planning process as “strategic partners”; and HRM was generally recognized as playing an important role in implementing business strategies. The degree of integration present was not related to short-run firm performance, however, time lags may be a factor. Implications of these findings are drawn. © 1995 by John Wiley & Sons, Inc.     

Firms' human resource in information system and sustainable performance: does their organizational identity matter?

Research suggests that firms' human resource management (HRM) in information technology (IT) may have a positive effective effect on their strategies of sustainable development. Based on the perspective of organizational identity orientation, we argue that firms' collectivistic orientation may moderate the relationship between the HRM and the implementation of the strategy. Focusing on firm performance in environmental protection, we test our predictions with empirical data from China's manufacturing industry. The results show a significant direct effect of the HRM and a significant moderating effect of identity orientation on the dependent variable, i.e. performance in sustainable development.     

Key Issues In Strategic Human Resource Management: Lessons From the Netherlands

The article gives an overview of key issues in strategic HRM in the Netherlands. the experiences and needs of practitioners act as a starting point for this analysis. Based on an inventory of recent publications in the professional journals and conferences for practitioners the following key issues were identified: linking HRM policies and practices to corporate strategy; from specialist staff to regular line management and external agencies; improving quality; measuring the outcome of HRM activities; and redesigning HRM tools from flows thinking to competency building. the state of the art in each of these areas is outlined and this is followed by an analysis which traces underlying causes and factors. Future perspectives inspired by case study evidence from leading companies in the area of strategic HRM are explored.     

HRM in project‐intensive firms: Changes and challenges

One of the most profound organizational changes currently under way is the application of project‐based structures within and between firms. This change is happening in both growth and mature industries. Several management scholars have taken interest in the reasons why firms adopt proj‐ect‐based ways of working. However, the effect of project‐based organizing on the firm's HRM is a recurrent problem and a challenge to many companies. We develop a framework for the analysis of HRM in project‐intensive firms. Based on a study of four companies and the transformation of their organizational structures and processes, we identify four managerial issues and a number of questions that must be addressed to improve HRM in proj‐ect‐intensive firms. © 2006 Wiley Periodicals, Inc.