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Market forces, strategic management, HRM practices and organizational performance, a model based in european sample


Author Info

  • Cunha, Rita Campos e
  • Cunha, Miguel Pina e
  • Morgado, Antonio
  • Brewster, Chris


This study uses structural equation modeling to test a model of the impact of human resources management practices on perceived organizational performance, on a large sample of European companies. The influences of competitive intensity, industry attractiveness and strategic management are considered in the model, and their direct and indirect influence on organizational performance is assessed. The model produced an adequate fit and results show that strategic management does influence human resource practices. Human resource flexibility practices and performance management have a positive impact on organizational performance, while training was not found to have a significant impact. A direct positive impact of competitive intensity and industry attractiveness on strategic management was supported by the data, as well as a direct positive effect of industry attractiveness on perceived organizational performance.

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Bibliographic Info

Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp415.

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Length: 44 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:unl:unlfep:wp415

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Postal: Campus de Campolide, 1099-032 Lisboa
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  1. Medcof, John W. & Needham, Brent, 1998. "The supra-organizational HRM system," Business Horizons, Elsevier, Elsevier, vol. 41(1), pages 43-50.
  2. Luo, Yadong, 1998. "Industry Attractiveness, Firm Competence, and International Investment Performance in a Transitional Economy," Bulletin of Economic Research, Wiley Blackwell, Wiley Blackwell, vol. 50(1), pages 73-82, January.
  3. Pavcnik, Nina, 2002. "Trade Liberalization, Exit, and Productivity Improvement: Evidence from Chilean Plants," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 69(1), pages 245-76, January.
  4. Birger Wernerfelt & Cynthia A. Montgomery, 1986. "What is an Attractive Industry?," Management Science, INFORMS, INFORMS, vol. 32(10), pages 1223-1230, October.
  5. Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 66(3), pages 529-54, July.
  6. Gerhart, B. & Milkovick, G.T., 1992. "Employee Compensation: Research and Practice," Papers, Cornell - Center for Advanced Human Resource Studies 92-26, Cornell - Center for Advanced Human Resource Studies.
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Cited by:
  1. Cunha, Rita Campos e & Cunha, Miguel Pina e, 2004. "Impact of strategy, HRM Strength and HRM bundles on innovation performance and organizational performance," FEUNL Working Paper Series, Universidade Nova de Lisboa, Faculdade de Economia wp464, Universidade Nova de Lisboa, Faculdade de Economia.
  2. Hazril Izwar IBRAHIM & Khairul Anuar Mohammad SHAH, 2013. "Effects of Organizational Characteristics Factors on the Implementation of Strategic Human Resource Practices: Evidence from Malaysian Manufacturing Firms," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 5-24, June.


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