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Does human resource management matter in a transitional economy? China as an example

Author

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  • K S Law

    (School of Business Management, Hong Kong University of Science and Technology)

  • D K Tse

    (School of Business, Hong Kong University)

  • N Zhou

    (Marketing Department, City University of Hong Kong)

Abstract

This paper investigates the significance of how firms manage their human resources (HRs) within the confines of powerful social institutions in a transitional economy, the People's Republic of China (China). We propose that two dimensions, the role of human resource management (RHR) and followers' perception of the leader (TOP), are important contributors to firm performance as are the influences of the regional economy and firm ownership. We tested our hypotheses with a survey of 180 firms from nine cities in China. We found that both role of HRM (RHR) and follower's perception of top-level management (TOP) are important to firm performance. The study confirms that while social institutions remain powerful in a transitional economy, effective HRM is important to firm performance. Journal of International Business Studies (2003) 34, 255–265. doi:10.1057/palgrave.jibs.8400026

Suggested Citation

  • K S Law & D K Tse & N Zhou, 2003. "Does human resource management matter in a transitional economy? China as an example," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(3), pages 255-265, May.
    • Handle: RePEc:pal:jintbs:v:34:y:2003:i:3:p:255-265
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    Citations

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    Cited by:

    1. Andrea Pontiggia & Lala Hu & Marco Savorgnan, 2013. "ChinaÕs Human Resources Development: Recent Evolution and Implications for the Global Market," Working Papers 29, Department of Management, Università Ca' Foscari Venezia.
    2. Zhu, Cherrie Jiuhua & Cooper, Brian K. & Fan, Di & De Cieri, Helen, 2013. "HR practices from the perspective of managers and employees in multinational enterprises in China: Alignment issues and implications," Journal of World Business, Elsevier, vol. 48(2), pages 241-250.
    3. Muller, A.R. & van Tulder, R., 2005. "Exploring Patterns of Upstream Internationalization: The Role of Home-region ‘Stickiness’," ERIM Report Series Research in Management ERS-2005-084-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Julie Li, 2005. "The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 423-443, December.
    5. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    6. Garry D. Bruton & Chung‐Ming Lau, 2008. "Asian Management Research: Status Today and Future Outlook," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 636-659, May.
    7. Yan Zhu & Li-Yun Sun & Alicia Leung, 2014. "Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 925-947, December.
    8. Orlando R. Villaverde, 2010. "A Macroeconomic Approach to Foreign Direct Investment (FDI) Inflow from the People's Republic of China to Cuba," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 20.
    9. 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.
    10. Amal Alnamrouti & Husam Rjoub & Hale Ozgit, 2022. "Do Strategic Human Resources and Artificial Intelligence Help to Make Organisations More Sustainable? Evidence from Non-Governmental Organisations," Sustainability, MDPI, vol. 14(12), pages 1-23, June.

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