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Looking into the black-box: analysis of the effectiveness of human resources strategy

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Author Info

  • Isidro Pena Garcia Pardo

    ()
    (Faculty of Law and Socials Sciences of Ciudad Real, Ciudad Real, Spain)

  • Ma del Valle Fernandez Moreno

    (Faculty of Law and Socials Sciences of Ciudad Real, Ciudad Real, Spain)

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    Abstract

    Numerous studies have shown a positive relationship between Human Resources Management (HRM) and firm performance. However, in spite of the variety of studies, adopted approaches and statistical methodologies to be found, it has not been possible to clarify the exact manner and conditions under which HRM can become a source of competitive advantage. This can be explained by the fact that most empirical works have ignored mediating hypothesis and merely examined the direct relationship between High Performance Work Systems (HPWS) and firm performance. This article, attempts to gain further insights into such an analysis by integrating the two main theoretical approaches in this field: The Resource Based View (RBV) of firm and Behavioural Theory. Using a sample of 62 financial firms we examined this mediating and moderating effect of Human Capital and HR Outcomes on the HPWS – Business Performance linkage. Hierarchical Regression Analysis revealed that HPWS was positively related to firm performance, Human Capital and HR outcomes. In addition, the level of Human Capital and HR outcomes mediate the relationship between HPWS and firm performance. These results shed new light on the mechanisms through which HPWS impacts business performance.

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    Bibliographic Info

    Article provided by University of Rijeka, Faculty of Economics in its journal Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics.

    Volume (Year): 27 (2009)
    Issue (Month): 1 ()
    Pages: 31-56

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    Handle: RePEc:rfe:zbefri:v:27:y:2009:i:1:p:31-56

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    Related research

    Keywords: human resources management (HRM); resource-based view of the firm; behavioral theory;

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    References

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    1. Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, vol. 33(2), pages 91-101, June.
    2. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High-Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    3. Ken Kamoche, 1996. "Strategic Human Resource Management Within A Resource-Capability View Of The Firm," Journal of Management Studies, Wiley Blackwell, vol. 33(2), pages 213-233, 03.
    4. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, 06.
    5. J. A. Molina & R. Ortega, 2003. "Effects of employee training on the performance of North-American firms," Applied Economics Letters, Taylor & Francis Journals, vol. 10(9), pages 549-552.
    6. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee voice, human resource practices, and quit rates: Evidence from the telecommunications industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
    7. Ann P. Bartel, 2004. "Human resource management and organizational performance: Evidence from retail banking," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(2), pages 181-203, January.
    8. John MacDuffie, 1995. "Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
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