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Strategic HR functions and firm performance: The moderating effects of high-involvement work practices

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  • Hyondong Kim
  • Kang Sung-Choon

Abstract

Although the strategic human resource management literature has emphasized the value of the integration of human resource management into strategic management, the mechanism through which the strategic integration of HR functions contributes to the improvement of firm performance is relatively unknown. Assuming that HR strategies cannot be successfully implemented without employee support for and commitment to these strategies, this research focuses on high-involvement work practices, which allow employees to participate in management decisions as potential moderators of the integration of HR functions in strategic management and firm performance. Using a sample of 203 unionized Korean firms, this research found that the effects of a strategic HR function on firm performance were moderated by high-involvement work practices such as a pay-for-performance program, a career-development program, union participation in company strategy, and temporary worker benefits. The results suggest that a strategic HR function will not be successful without institutional mechanisms that foster employee involvement. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Hyondong Kim & Kang Sung-Choon, 2013. "Strategic HR functions and firm performance: The moderating effects of high-involvement work practices," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 91-113, March.
    • Handle: RePEc:kap:asiapa:v:30:y:2013:i:1:p:91-113
    DOI: 10.1007/s10490-011-9264-6
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    References listed on IDEAS

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    1. Joel Cutcher-Gershenfeld & Thomas Kochan, 2004. "Taking Stock: Collective Bargaining at the Turn of the Century," ILR Review, Cornell University, ILR School, vol. 58(1), pages 3-26, October.
    2. Takao Kato & Ju HO Lee & Kang-sung Lee & Jang-soo Ryu, 2005. "Employee participation and involvement in korea: evidence from a new survey and field research," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 251-281.
    3. Catherine Truss, 2001. "Complexities and Controversies in Linking HRM with Organizational Outcomes," Journal of Management Studies, Wiley Blackwell, vol. 38(8), pages 1121-1149, December.
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    1. Ritter-Hayashi, Daniela & Knoben, Joris & Vermeulen, Patrick A.M., 2021. "Temporary employment: Curse or blessing for a firm's absorptive capacity?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Ritter-Hayashi, D. & Knoben, Joris & Vermeulen, P.A.M., 2018. "Success Belongs to the Flexible Firm : How Labor Flexibility Can Retain Firm Innovativeness in Times of Downsizing," Other publications TiSEM 749e1bae-6946-40cb-a5fc-e, Tilburg University, School of Economics and Management.
    3. 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.
    4. Namgyoo Park & John Mezias & Jinju Lee & Jae-Hoon Han, 2014. "Reverse knowledge diffusion: Competitive dynamics and the knowledge seeking behavior of Korean high-tech firms," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 355-375, June.
    5. Josep M. Argilés-Bosch & Josep Garcia-Blandón & Diego Ravenda & Mónica Martínez-Blasco, 2018. "An empirical analysis of the curvilinear relationship between slack and firm performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 361-397, December.
    6. Nadeem, Sadia & Raza, Mishal & Kayani, Neelab & Aziz, Amna & Nayab, Dure, 2018. "Examining cross-cultural compatibility of high performance work practices," International Business Review, Elsevier, vol. 27(3), pages 563-583.
    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. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.
    9. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.

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