Loading…
Linking HRM Competency to Firm Performance: An Empirical Investigation of Chinese Firms
Purpose This study attempts to investigate the relationship between HRM competency and firm performance. Drawn upon the resource-based view (RBV) and alignment theory, HRM competency is expected to be related to the adoption of high performance work systems (HPWS) and the achievement of external fit...
Saved in:
Published in: | Personnel review 2014-08, Vol.43 (6), p.898-914 |
---|---|
Main Authors: | , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Summary: | Purpose
This study attempts to investigate the relationship between HRM competency and firm performance. Drawn upon the resource-based view (RBV) and alignment theory, HRM competency is expected to be related to the adoption of high performance work systems (HPWS) and the achievement of external fit in HRM, which in turn contribute to firm performance.
Design/methodology/approach
The data for this study were collected via a survey of in 157 Chinese enterprises located in the high technology development zone of three large cities. Two different respondents from each firm provided information about organizational characteristics, HRM policy and practices, and firm performance. Multiple regressions were used to test the hypotheses.
Findings
Results indicate that HRM competency has a significant and positive effect on firm performance. Such an effect is found to be mediated by the achievement of external fit, but not the adoption of HPWS.
Research limitations/implications
Limitations of the study include cross-sectional data, perceptual measure of firm performance, omission of external variables, and restricted sample. This study highlights the importance of HRM competency in strategic HRM, and provides evidence about how this construct is linked to firm performance.
Originality/value
This is the first study that explores the effect of HRM competency on the adoption of HPWS and the achievement of external fit. It further reveals that the achievement of external fit mediates the relationship between HRM competency and firm performance, and hence contributes to the HRM literature. |
---|---|
ISSN: | 0048-3486 1758-6933 |
DOI: | 10.1108/PR-05-2013-0086 |