IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v59y2022i3p660-694.html

‘There’s Many a Slip “Twixt the Cup and the Lip”’: HR Management Practices and Firm Performance

Author

Listed:
  • Lien Vossaert
  • Frederik Anseel
  • Veroniek Collewaert
  • Nicolai J. Foss

Abstract

Divergent but complementary perspectives have been articulated regarding how management practices and their implementation influence firm performance. Integrating such perspectives in the human resource (HR) management literature, we examine how HR management practices formulated at firm level interact with HR decisions at lower levels, and how this affects firm performance. HR implementation models have proposed that consistency in HR practices across organizational levels and units is key; conversely, idiosyncratic deals (i‐deals) theory advances individualization as a central principle, suggesting that lower‐level initiative in making decisions that reflect local circumstances should have beneficial effects. Addressing the interplay between the consistency and individualization perspectives in a sample of 870 employees nested in 36 firms, we present evidence suggesting that individualized HR decisions positively affect firm performance only in the presence of strong firm‐level HR practices. This interplay occurs through two mediating social exchange processes: perceived organizational support and perceived distributive justice.

Suggested Citation

  • Lien Vossaert & Frederik Anseel & Veroniek Collewaert & Nicolai J. Foss, 2022. "‘There’s Many a Slip “Twixt the Cup and the Lip”’: HR Management Practices and Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 59(3), pages 660-694, May.
    • Handle: RePEc:bla:jomstd:v:59:y:2022:i:3:p:660-694
    DOI: 10.1111/joms.12781
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.12781
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.12781?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
    ---><---

    References listed on IDEAS

    as
    1. Weller, Ingo & Hymer, Christina B. & Nyberg, Anthony J. & Ebert, Julia, 2019. "How Matching Creates Value: Cogs And Wheels For Human Capital Resources Research," Munich Reprints in Economics 78209, University of Munich, Department of Economics.
    2. Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Megha Patnaik & Itay Saporta-Eksten & John Van Reenen, 2019. "What Drives Differences in Management Practices?," American Economic Review, American Economic Association, vol. 109(5), pages 1648-1683, May.
    3. Yoshihiro Eshima & Brian S. Anderson, 2017. "Firm growth, adaptive capability, and entrepreneurial orientation," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 770-779, March.
    4. Jack A. Nickerson & Todd R. Zenger, 2008. "Envy, comparison costs, and the economic theory of the firm," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1429-1449, December.
    5. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    6. Claudine Gartenberg & Andrea Prat & George Serafeim, 2019. "Corporate Purpose and Financial Performance," Organization Science, INFORMS, vol. 30(1), pages 1-18, February.
    7. P. Matthijs Bal & Simon B. De Jong & Paul G. W. Jansen & Arnold B. Bakker, 2012. "Motivating Employees to Work Beyond Retirement: A Multi‐Level Study of the Role of I‐Deals and Unit Climate," Journal of Management Studies, Wiley Blackwell, vol. 49(2), pages 306-331, March.
    8. Martha S. Feldman, 2000. "Organizational Routines as a Source of Continuous Change," Organization Science, INFORMS, vol. 11(6), pages 611-629, December.
    9. Jeong-Yeon Lee & Daniel G. Bachrach & Denise M. Rousseau, 2015. "Internal Labor Markets, Firm-Specific Human Capital, and Heterogeneity Antecedents of Employee Idiosyncratic Deal Requests," Organization Science, INFORMS, vol. 26(3), pages 794-810, June.
    10. Clint Chadwick & Janice F. Super & Kiwook Kwon, 2015. "Resource orchestration in practice: CEO emphasis on SHRM, commitment-based HR systems, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 360-376, March.
    11. Jody Hoffer Gittell & Rob Seidner & Julian Wimbush, 2010. "A Relational Model of How High-Performance Work Systems Work," Organization Science, INFORMS, vol. 21(2), pages 490-506, April.
    12. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    13. Niki den Nieuwenboer & João Vieira Da Cunha & Linda Klebe Treviño, 2017. "Middle Managers and Corruptive Routine Translation: The Social Production of Deceptive Performance," Post-Print hal-01745352, HAL.
    14. Dejun Tony Kong & Violet T. Ho & Sargam Garg, 2020. "Employee and Coworker Idiosyncratic Deals: Implications for Emotional Exhaustion and Deviant Behaviors," Journal of Business Ethics, Springer, vol. 164(3), pages 593-609, July.
    15. repec:hal:journl:hal-02116097 is not listed on IDEAS
    16. Niki A. den Nieuwenboer & João Vieira da Cunha & Linda Klebe Treviño, 2017. "Middle Managers and Corruptive Routine Translation: The Social Production of Deceptive Performance," Organization Science, INFORMS, vol. 28(5), pages 781-803, October.
    17. Jay B. Barney & Nicolai J. Foss & Jacob Lyngsie, 2018. "The role of senior management in opportunity formation: Direct involvement or reactive selection?," Strategic Management Journal, Wiley Blackwell, vol. 39(5), pages 1325-1349, May.
    18. Elise Marescaux & Sophie De Winne & Luc Sels, 2019. "Idiosyncratic Deals from a Distributive Justice Perspective: Examining Co-workers’ Voice Behavior," Journal of Business Ethics, Springer, vol. 154(1), pages 263-281, January.
    19. Nicolai J. Foss & Torben Pedersen, 2016. "Microfoundations In Strategy Research," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 22-34, December.
    20. Ho, Violet T. & Kong, Dejun Tony, 2015. "Exploring the signaling function of idiosyncratic deals and their interaction," Organizational Behavior and Human Decision Processes, Elsevier, vol. 131(C), pages 149-161.
    21. Olli‐Pekka Kauppila & Lorenzo Bizzi & David Obstfeld, 2018. "Connecting and creating: tertius iungens, individual creativity, and strategic decision processes," Strategic Management Journal, Wiley Blackwell, vol. 39(3), pages 697-719, March.
    Full references (including those not matched with items on IDEAS)

    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. Smriti Anand & Jeremy D. Meuser & Prajya R. Vidyarthi & Robert C. Liden & Denise M. Rousseau & Srinivas Ekkirala, 2022. "A Multi‐Level Model of I‐deals in Workgroups: Employee and Coworker Perceptions of Leader Fairness, I‐Deals and Group Performance," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 489-517, March.
    2. Erik Brynjolfsson & Wang Jin & Kristina McElheran, 2021. "The power of prediction: predictive analytics, workplace complements, and business performance," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(4), pages 217-239, October.
    3. Margaret A. Abernethy & Chung-Yu Hung & Laurence van Lent, 2020. "Expertise and Discretionary Bonus Decisions," Management Science, INFORMS, vol. 66(1), pages 415-432, January.
    4. Louise Lindbjerg & Theodor Vladasel, 2021. "Hiring entrepreneurs for innovation," Economics Working Papers 1811, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Velasco Vizcaíno, Franklin & Martin, Silvia L. & Jaramillo, Fernando, 2023. "The role of i-deals negotiated by small business managers in job satisfaction and firm performance: Do company ethics matter?," Journal of Business Research, Elsevier, vol. 158(C).
    6. Florian Englmaier & Jose E. Galdon-Sanchez & Ricard Gil & Michael Kaiser & Helene Strandt, 2025. "Management Practices and Firm Performance During the Great Recession," Rationality and Competition Discussion Paper Series 548, CRC TRR 190 Rationality and Competition.
    7. Hazhir Rahmandad, 2019. "Interdependence, Complementarity, and Ruggedness of Performance Landscapes," Strategy Science, INFORMS, vol. 4(3), pages 234-249, September.
    8. Renu Agarwal & Christopher Bajada & Paul James Brown & Roy Green, 2021. "People Management Practices that Underpin Lean Management Outcomes," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 75-94, June.
    9. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    10. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    11. Kambayashi, Ryo & Ohyama, Atsushi & Hori, Nobuko, 2021. "Management practices and productivity in Japan: Evidence from six industries in JP MOPS," Journal of the Japanese and International Economies, Elsevier, vol. 61(C).
    12. Amaresh K Tiwari, 2023. "Automation In An Open, Catching-Up Economy: Aggregate And Microeconometric Evidence," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 144, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    13. Bryan Hong & Lorenz Kueng & Mu-Jeung Yang, 2015. "Estimating Management Practice Complementarity between Decentralization and Performance Pay," NBER Working Papers 20845, National Bureau of Economic Research, Inc.
    14. Christopher Cornwell & Ian M. Schmutte & Daniela Scur, 2021. "Building a Productive Workforce: The Role of Structured Management Practices," Management Science, INFORMS, vol. 67(12), pages 7308-7321, December.
    15. Sun-Moon Jung & Jae Yong Shin, 2022. "Social Performance Incentives in Mission-Driven Firms," Management Science, INFORMS, vol. 68(10), pages 7631-7657, October.
    16. Bilicka, Katarzyna & Scur, Daniela, 2024. "Organizational capacity and profit shifting," Journal of Public Economics, Elsevier, vol. 238(C).
    17. Chen Ding & Ziteng Zhang & Shuming Zhao & Gaoqi Zhang, 2023. "The Impact of Idiosyncratic Deals on Coworkers’ Interactive Behavior: The Moderating Role of Developmental Human Resource Management Practices," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    18. Coraggio, Luca & Pagano, Marco & Scognamiglio, Annalisa & Tåg, Joacim, 2025. "JAQ of all trades: Job mismatch, firm productivity and managerial quality," Journal of Financial Economics, Elsevier, vol. 164(C).
    19. Michele Fioretti, 2022. "Caring or Pretending to Care? Social Impact, Firms' Objectives, and Welfare (former title: Social Responsibility and Firm's Objectives)," Sciences Po Economics Discussion Papers hal-03393065, HAL.
    20. Jacquelyn Pless, 2023. "To Starve or to Stoke? Understanding Whether Divestment versus Investment Can Steer (Green) Innovation," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 2(1), pages 107-147.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jomstd:v:59:y:2022:i:3:p:660-694. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    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.