IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v30y2013i1p53-72.html
   My bibliography  Save this article

HRM systems and firm performance: The mediation role of strategic orientation

Author

Listed:
  • Irene Chow
  • Stephen Teo
  • Irene Chew

Abstract

Prior research evidence of a set of internal fit human resource practices supports a positive human resource management (HRM)–performance relationship. Yet we know very little about exactly what drives the HRM–performance (also known as strategic HRM) relationship. In response to the call for suitable theories to explore the “black box” between HRM and firm performance, this study is designed to extend previous work by examining how the relationship between HRM and strategic orientation influences firm performance. Specifically, it examines the relationship between HRM systems, strategic orientation, and performance in a cross-section of 190 firms in Singapore. The research hypotheses were tested using multiple regression and LISREL. As predicted, there was an indirect effect between Inducement and Investment HRM systems and firm performance, such that the relationship was mediated by strategic orientation. In particular, Singaporean firms which implemented product and market differentiation strategies would mediate the HRM systems–performance relationship. Implications for research and managerial practices are provided. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Irene Chow & Stephen Teo & Irene Chew, 2013. "HRM systems and firm performance: The mediation role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 53-72, March.
  • Handle: RePEc:kap:asiapa:v:30:y:2013:i:1:p:53-72
    DOI: 10.1007/s10490-012-9288-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10490-012-9288-6
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10490-012-9288-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Selmer, Jan & Chiu, Randy, 2004. "Required human resources competencies in the future: a framework for developing HR executives in Hong Kong," Journal of World Business, Elsevier, vol. 39(4), pages 324-336, November.
    2. John J Lawler & Shyh-jer Chen & Pei-Chuan Wu & Johngseok Bae & Bing Bai, 2011. "High-performance work systems in foreign subsidiaries of American multinationals: An institutional model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 202-220, February.
    3. Lau, Chung-Ming & Yiu, Daphne W. & Yeung, Ping-Kwong & Lu, Yuan, 2008. "Strategic orientation of high-technology firms in a transitional economy," Journal of Business Research, Elsevier, vol. 61(7), pages 765-777, July.
    4. Edelman, Linda F. & Brush, Candida G. & Manolova, Tatiana, 2005. "Co-alignment in the resource-performance relationship: strategy as mediator," Journal of Business Venturing, Elsevier, vol. 20(3), pages 359-383, May.
    5. Kiwook Kwon & Johngseok Bae & John J. Lawler, 2010. "High Commitment HR Practices and Top Performers," Management International Review, Springer, vol. 50(1), pages 57-80, February.
    6. Harris, Lloyd C. & Ogbonna, Emmanuel, 2001. "Strategic human resource management, market orientation, and organizational performance," Journal of Business Research, Elsevier, vol. 51(2), pages 157-166, February.
    7. Wright, Peter & Kroll, Mark & Pray, Bevalee & Lado, Augustine, 1995. "Strategic orientations, competitive advantage, and business performance," Journal of Business Research, Elsevier, vol. 33(2), pages 143-151, June.
    8. David Ahlstrom, 2012. "On the types of papers the Asia Pacific Journal of Management generally publishes," Asia Pacific Journal of Management, Springer, vol. 29(1), pages 1-7, March.
    9. Rabi Bhagat & Annette McDevitt & Ian McDevitt, 2010. "On improving the robustness of Asian management theories: Theoretical anchors in the era of globalization," Asia Pacific Journal of Management, Springer, vol. 27(2), pages 179-192, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fu, Na & Bosak, Janine & Flood, Patrick C. & Ma, Qinhai, 2019. "Chinese and Irish professional service firms compared: Linking HPWS, organizational coordination, and firm performance," Journal of Business Research, Elsevier, vol. 95(C), pages 266-276.
    2. Chunling Zhu & Anqi Liu & Yangwen Wang, 2019. "Integrating organizational learning with high-performance work system and entrepreneurial orientation: a moderated mediation framework," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-24, December.
    3. Nakhon Kokkaew & Vachara Peansupap & Noppadon Jokkaw, 2022. "An Empirical Examination of Knowledge Management and Organizational Learning as Mediating Variables between HRM and Sustainable Organizational Performance," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    4. Yun-Hwa Chiang & Chu-Chun Hsu & His-An Shih, 2015. "Experienced high performance work system, extroversion personality, and creativity performance," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 531-549, June.
    5. Ammar Ahmed & Faiz Muhammad Khuwaja & Noor Ahmed Brohi & Ismail bin Lebai Othman, 2018. "Organizational Factors and Organizational Performance: A Resource-Based view and Social Exchange Theory Viewpoint," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(3), pages 579-599, March.
    6. Yan Zhu & Li-Yun Sun & Alicia Leung, 2014. "Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 925-947, December.
    7. Pawan Budhwar & Vijay Pereira & Kamel Mellahi & Sanjay Kumar Singh, 2019. "The state of HRM in the Middle East: Challenges and future research agenda," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 905-933, December.
    8. Kenneth S. Law & Chi-Sum Wong & Ming Yan & Guohua Huang, 2016. "Asian researchers should be more critical: The example of testing mediators using time-lagged data," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 319-341, June.
    9. Paul Higgins & Man-fung Lo, 2018. "The strategic and cultural legitimacy of HR professionalization in Hong Kong," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1139-1160, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano Denicolai & Antonella Zucchella & Federico Moretti, 2018. "Not So Similar After All: Exploring The Diversity Of Strategic Orientations For Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-33, May.
    2. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.
    3. Hang-yue Ngo & Raymond Loi & Sharon Foley & Xiaoming Zheng & Lingqing Zhang, 2013. "Perceptions of organizational context and job attitudes: The mediating effect of organizational identification," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 149-168, March.
    4. David Ahlstrom, 2012. "Contributing to the Asia Pacific Journal of Management," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 191-194, June.
    5. Ariel C. Avgar & Niti Pandey & Kiwook Kwon, 2012. "Discretion in Context: A Moderated Mediation Model of the Relationship between Discretion and Turnover Intentions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 106-128, January.
    6. Luminita Stefania BODEA & Cristian DUTU, 2016. "The Consequences Of Strategic Orientation Of The Firm On Business Performance," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 188-200, November.
    7. Kaifeng Jiang & Riki Takeuchi & David P. Lepak, 2013. "Where do We Go From Here? New Perspectives on the Black Box in Strategic Human Resource Management Research," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1448-1480, December.
    8. Yu, Wantao & Ramanathan, Ramakrishnan & Nath, Prithwiraj, 2017. "Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 160-169.
    9. Shao-Long Li & Fang Sun & Mingze Li, 2019. "Sustainable Human Resource Management Nurtures Change-Oriented Employees: Relationship between High-Commitment Work Systems and Employees’ Taking Charge Behaviors," Sustainability, MDPI, vol. 11(13), pages 1-15, June.
    10. Mavis Chen & Carol Lin & Hsing-Er Lin & Edward McDonough, 2012. "Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 239-264, June.
    11. Danny Soetanto & Sarah L. Jack, 2018. "Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1213-1231, October.
    12. Bordunos, A. & Kosheleva, S., 2016. "High Involvement Work System from organizational and individual perspective," Working Papers 6445, Graduate School of Management, St. Petersburg State University.
    13. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    14. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    15. Rho, Boo-Ho & Park, Kwangtae & Yu, Yung-Mok, 2001. "An international comparison of the effect of manufacturing strategy-implementation gap on business performance," International Journal of Production Economics, Elsevier, vol. 70(1), pages 89-97, March.
    16. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.
    17. Amelia Manuti & Maria Luisa Giancaspro & Monica Molino & Emanuela Ingusci & Vincenzo Russo & Fulvio Signore & Margherita Zito & Claudio Giovanni Cortese, 2020. "“Everything Will Be Fine”: A Study on the Relationship between Employees’ Perception of Sustainable HRM Practices and Positive Organizational Behavior during COVID19," Sustainability, MDPI, vol. 12(23), pages 1-17, December.
    18. Long Lam & Xu Huang & Dora Lau, 2012. "Leadership research in Asia: Taking the road less traveled?," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 195-204, June.
    19. P.K.A. Ladipo & A. Ganiyu Rahim & C. Abayomi Oguntoyibo & I. Olatunji Okikiola, 2016. "Market Orientation and Business Performance: a Study of Interrelationships and Effects in a Small sized Hotels within Lagos State Metropolis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(4), pages 98-119, December.
    20. Luo, Yadong & Tan, J. Justin, 1998. "A comparison of multinational and domestic firms in an emerging market: A strategic choice perspective," Journal of International Management, Elsevier, vol. 4(1), pages 21-40, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:30:y:2013:i:1:p:53-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.