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The impact of market orientation and strategic HRM on firm performance: the case of Chinese enterprises

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  • Li-Qun Wei

    (Department of Management, Hong Kong Baptist University, Hong Kong, China)

  • Chung-Ming Lau

    (Department of Management, Chinese University of Hong Kong, Hong Kong, China)

Abstract

This study examines market orientation as the antecedent to strategic human resource management (SHRM), and the related effects on firm performance in an emerging economy context. It is suggested that the relationship between SHRM and firm performance is moderated by ownership type and autonomy in staffing of these firms. Empirical results from a sample of Chinese firms from various industries and regions reveal that SHRM mediates the relationship between market orientation and firm performance. It is also found that the effect of SHRM on firm performance is stronger for firms with a higher degree of autonomy in staffing, and weaker for private firms. Other types of ownership (state or foreign) have no effect on this relationship. Journal of International Business Studies (2008) 39, 980–995. doi:10.1057/palgrave.jibs.8400395

Suggested Citation

  • Li-Qun Wei & Chung-Ming Lau, 2008. "The impact of market orientation and strategic HRM on firm performance: the case of Chinese enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 980-995, September.
    • Handle: RePEc:pal:jintbs:v:39:y:2008:i:6:p:980-995
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    Cited by:

    1. Zhu, JianJun (John) & Tse, Caleb H. & Li, Xu, 2019. "Unfolding China’s state-owned corporate empires and mitigating agency hazards: Effects of foreign investments and innovativeness," Journal of World Business, Elsevier, vol. 54(3), pages 191-212.
    2. Ungureanu, Paula & Bertolotti, Fabiola & Pilati, Massimo, 2019. "What drives alignment between offered and perceived well-being initiatives in organizations? A cross-case analysis of employer–employee shared strategic intentionality," European Management Journal, Elsevier, vol. 37(6), pages 742-759.
    3. Yayla, Serdar & Yeniyurt, Sengun & Uslay, Can & Cavusgil, Erin, 2018. "The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions," International Business Review, Elsevier, vol. 27(6), pages 1105-1115.
    4. He, Xinming & Rizov, Marian & Zhang, Xufei, 2022. "Workforce size adjustment as a strategic response to exchange rate shocks: A strategy-tripod application to Chinese firms," Journal of Business Research, Elsevier, vol. 138(C), pages 203-213.
    5. He, Xinming & Wei, Yingqi, 2011. "Linking market orientation to international market selection and international performance," International Business Review, Elsevier, vol. 20(5), pages 535-546, October.
    6. Wei, Li-Qun & Ling, Yan, 2015. "CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China," Journal of Business Research, Elsevier, vol. 68(6), pages 1157-1165.
    7. M. Safdar Rehman, 2011. "Human Resource Practices and Job Performance in Pakistan, Analysis of a Hypothesized Model," Information Management and Business Review, AMH International, vol. 3(2), pages 78-90.
    8. Matevž Rasković & Barbara Mörec, 2012. "Organizational Change and Corporate Sustainability in an Economic Crisis: Evidence from Slovenia," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 522-536, June.
    9. Li Cai & Qing Liu & Xiaoyu Yu, 2013. "Effects of Top Management Team Heterogeneous Background and Behavioural Attributes on the Performance of New Ventures," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 354-366, May.
    10. Guiyao Tang & Bingjie Yu & Yang Chen & Li-Qun Wei, 2019. "Unpacking the mechanism linking market orientation and corporate entrepreneurship: the mediating role of human resource management strength," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 593-614, September.
    11. Yang Chen & Guiyao Tang & Jiafei Jin & Ji Li & Pascal Paillé, 2015. "Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality," Journal of Business Ethics, Springer, vol. 127(2), pages 479-500, March.
    12. TOH Seong-Yuen & KOON Vui-Yee, 2017. "Determining Mission Statement Effectiveness From A Fit Perspective," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(2), pages 220-240, August.
    13. Lau, Chung-Ming, 2011. "Team and organizational resources, strategic orientations, and firm performance in a transitional economy," Journal of Business Research, Elsevier, vol. 64(12), pages 1344-1351.
    14. Yi-Ying Chang & Paul Hughes & Ian Hodgkinson & Che-Yuan Chang & Yi-Tai Seih, 2022. "The antecedents of corporate entrepreneurship: multilevel, multisource evidence," Review of Managerial Science, Springer, vol. 16(2), pages 355-390, February.
    15. Sundari, Made Siti & Ulfa, Hema Dian, 2018. "Orientasi kewirausahaan dalam bisnis keluarga," OSF Preprints 8sdax, Center for Open Science.
    16. Guo, Chiquan & Wang, Yong J. & Metcalf, Ashley, 2014. "How to calibrate conventional market-oriented organizational culture in 21st century production-centered firms? A customer relationship perspective," International Journal of Production Economics, Elsevier, vol. 156(C), pages 235-245.
    17. Soumya Sarkar & Titas Bhattacharjee, 2017. "Impact of Voluntary Disclosures on Corporate Brand Equity," Corporate Reputation Review, Palgrave Macmillan, vol. 20(2), pages 125-136, May.
    18. Bello Taofik Abidemi & Fairol Bin Halim & Ahmad Alshauibi, 2018. "Moderating Role of Environmental Dynamism on the Relationship between Service Marketing Mix, Marketing Orientation and Microfinance Performance: A Conceptual Model," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 40-46, September.
    19. Peter Gahan & Marco Michelotti & Guy Standing, 2012. "The Diffusion of HR Practices in Chinese Workplaces and Organizational Outcomes," ILR Review, Cornell University, ILR School, vol. 65(3), pages 651-685, July.
    20. Li‐Qun Wei & Jun Liu & Yuan‐Yi Chen & Long‐Zeng Wu, 2010. "Political Skill, Supervisor–Subordinate Guanxi and Career Prospects in Chinese Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 437-454, May.
    21. Ozkaya, H. Erkan & Droge, Cornelia & Hult, G. Tomas M. & Calantone, Roger & Ozkaya, Elif, 2015. "Market orientation, knowledge competence, and innovation," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 309-318.
    22. Anis Ben Brik & Belaid Rettab & Kamel Mellahi, 2011. "Market Orientation, Corporate Social Responsibility, and Business Performance," Journal of Business Ethics, Springer, vol. 99(3), pages 307-324, March.

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