IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i6p1679-d215631.html
   My bibliography  Save this article

Additive Effects of Performance- and Commitment-Oriented Human Resource Management Systems on Organizational Outcomes

Author

Listed:
  • KonShik Kim

    (Department of Business Administration, Kookmin University, Seoul 02707, Korea)

  • Tack-Hyun Shin

    (Department of Industrial and Information Systems Engineering, Seoul National University of Science and Technology, Seoul 01811, Korea)

Abstract

Exploring the duality and balance research on human resource management (HRM), this study established two different HRM systems or bundles based on distinct guiding principles—the performance-oriented HRM system and the commitment-oriented HRM system. This study investigated whether the performance- and commitment-oriented HRM systems or bundles with different philosophical backgrounds have their own independent and additive effects on organizational outcomes. The relationships between these HRM systems and organizational outcomes were examined with 1735 firm-period samples in the longitudinal setting. The empirical results show that the commitment-oriented HRM systems have independent and additive effects on organizational commitment and human capital. However, the performance-oriented HRM systems have no independent and additive effect on organizational outcomes. Our study also indicates that increasing the performance-oriented HRM practices can be redundant and unnecessary unless firms have sufficiently high levels of the commitment-oriented HRM practices. Given that the definition and measures of commitment-oriented HRM bundles nearly match the characteristics of sustainable HRM, we thus argue that the commitment-oriented HRM systems have more potential to improve not only organizational outcomes and performance, but also human and social sustainability, than the performance-oriented HRM systems.

Suggested Citation

  • KonShik Kim & Tack-Hyun Shin, 2019. "Additive Effects of Performance- and Commitment-Oriented Human Resource Management Systems on Organizational Outcomes," Sustainability, MDPI, vol. 11(6), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1679-:d:215631
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/6/1679/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/6/1679/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-325, May.
    2. Spyros Arvanitis, 2005. "Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 993-1016, December.
    3. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    4. Jahoda,Marie, 1982. "Employment and Unemployment," Cambridge Books, Cambridge University Press, number 9780521285865, November.
    5. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1.
    6. Marian Rizov & Richard Croucher, 2009. "Human resource management and performance in European firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 253-272, March.
    7. Pfeffer, Jeffrey, 2010. "Building Sustainable Organizations: The Human Factor," Research Papers 2017r, Stanford University, Graduate School of Business.
    8. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    10. David E. Guest, 1987. "Human Resource Management And Industrial Relations[1]," Journal of Management Studies, Wiley Blackwell, vol. 24(5), pages 503-521, September.
    11. Jeffrey Pfeffer, 2007. "Human Resources from an Organizational Behavior Perspective: Some Paradoxes Explained," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 115-134, Fall.
    12. D. Charles Galunic & Erin Anderson, 2000. "From Security to Mobility: Generalized Investments in Human Capital and Agent Commitment," Organization Science, INFORMS, vol. 11(1), pages 1-20, February.
    13. Catherine Truss & Lynda Gratton & Veronica Hope‐Hailey & Patrick McGovern & Philip Stiles, 1997. "Soft and Hard Models of Human Resource Management: A Reappraisal," Journal of Management Studies, Wiley Blackwell, vol. 34(1), pages 53-73, January.
    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. Kozica, Arjan & Kaiser, Stephan, 2012. "A Sustainability Perspective on Flexible HRM: How to Cope with Paradoxes of Contingent Work," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(3), pages 239-261.
    2. Soufiane Mezzourh & Walid A Nakara, 2009. "Governance and innovation : A Knowledge-based approach [La gouvernance de l'innovation : une approche par la connaissance]," Post-Print halshs-01955966, HAL.
    3. Lars Kunze & Nicolai Suppa, 2014. "Bowling Alone or Bowling at All? The Effect of Unemployment on Social Participation," Ruhr Economic Papers 0510, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    4. Mouna Mrad & Slaheddine Hallara, 2014. "The Relationship Between the Board of Directors and the Performance/Value Creation in a Context of Privatization: The Case of French Companies," Public Organization Review, Springer, vol. 14(1), pages 83-108, March.
    5. Zwysen, Wouter, 2013. "Where you go depends on where you come from: the influence of father’s employment status on young adult’s labour market experiences," ISER Working Paper Series 2013-24, Institute for Social and Economic Research.
    6. Randall Morck, 2003. "Why Some Double Taxation Might Make Sense: The Special Case of Inter-corporate Dividends," NBER Working Papers 9651, National Bureau of Economic Research, Inc.
    7. Vishal Gupta & Sandra C. Mortal & Tina Yang, 2018. "Entrepreneurial orientation and firm value: Does managerial discretion play a role?," Review of Managerial Science, Springer, vol. 12(1), pages 1-26, January.
    8. Hoxha, Sergei & Kleinknecht, Alfred, 2020. "When labour market rigidities are useful for innovation. Evidence from German IAB firm-level data," Research Policy, Elsevier, vol. 49(7).
    9. Jing He, 2022. "Executive Network Centrality and Corporate Reporting," Management Science, INFORMS, vol. 68(2), pages 1512-1536, February.
    10. Wenwu Cai & Xiaofeng Quan & Gary Gang Tian, 2023. "Local Corruption and Trade Credit: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 185(3), pages 563-594, July.
    11. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.
    12. Caleb Bernacchio, 2021. "Virtue Beyond Contract: A MacIntyrean Approach to Employee Rights," Journal of Business Ethics, Springer, vol. 171(2), pages 227-240, June.
    13. Jonas Puck & Markus K. Hödl & Igor Filatotchev & Hans-Georg Wolff & Benjamin Bader, 2016. "Ownership mode, cultural distance, and the extent of parent firms’ strategic control over subsidiaries in the PRC," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1075-1105, December.
    14. Friedemann Polzin & Helen Toxopeus & Erik Stam, 2018. "The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders," Small Business Economics, Springer, vol. 50(2), pages 251-273, February.
    15. López-Cotarelo, Juan, 2018. "Line managers and HRM: a managerial discretion perspective," LSE Research Online Documents on Economics 84178, London School of Economics and Political Science, LSE Library.
    16. Sumon Kumar Bhaumik & Andros Gregoriou, 2010. "‘Family’ Ownership, Tunnelling And Earnings Management: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 705-730, September.
    17. Jian Zhang & Dongmin Kong & Ji Wu, 2018. "Doing Good Business by Hiring Directors with Foreign Experience," Journal of Business Ethics, Springer, vol. 153(3), pages 859-876, December.
    18. Kaouthar Lajili, 2015. "Embedding human capital into governance design: a conceptual framework," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(4), pages 741-762, November.
    19. James J. Chrisman & Donald O. Neubaum & Friederike Welter & Karl Wennberg, 2022. "Knowledge Accumulation in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 46(3), pages 479-496, May.
    20. Nguyen, Phong Thanh & Nguyen, Linh Thi My, 2022. "Understanding platform market value through decentralization governance — An integrative model from signaling and mechanism design theory," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:11:y:2019:i:6:p:1679-:d:215631. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.