IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v21y2020i4p1087-1112.html
   My bibliography  Save this article

Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach

Author

Listed:
  • Subash Chandra Pattnaik
  • Rashmita Sahoo

Abstract

The purpose of this research article is to examine the relationship between human resource (HR) practices and organizational performance. Though this research theme has been extensively researched in Western countries, very limited research has been done in the prevailing HRM scenario obtained in developing economies, especially in India. Hence, this article attempts to study the relationship and fill this research gap. A two-stage structural equation modeling (SEM) has been used to study this relationship. In the first stage, the proposed measurement model is validated through confirmatory factor analysis (CFA) and, in the second, the structural model examines the hypothesized relationship between the HR practices and organizational performance. It is found that the two are positively related. The findings of this study strengthen existing literature in the area and have important implications for managers engaged in HR functions.

Suggested Citation

  • Subash Chandra Pattnaik & Rashmita Sahoo, 2020. "Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach," Global Business Review, International Management Institute, vol. 21(4), pages 1087-1112, August.
    • Handle: RePEc:sae:globus:v:21:y:2020:i:4:p:1087-1112
    DOI: 10.1177/0972150918779286
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150918779286
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150918779286?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. Flora F. T. Chiang & Thomas A. Birtch, 2010. "Appraising Performance across Borders: An Empirical Examination of the Purposes and Practices of Performance Appraisal in a Multi‐Country Context," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1365-1393, November.
    2. 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, June.
    3. Kim Hoque, 1999. "Human Resource Management and Performance in the UK Hotel Industry," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 419-443, September.
    4. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
    5. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    6. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    7. Jonathan S. Leonard, 1990. "Executive Pay and Firm Performance," ILR Review, Cornell University, ILR School, vol. 43(3), pages 13, April.
    8. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
    9. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    10. Fernando Mart¡n Alc zar & Pedro Miguel Romero Fern ndez & Gonzalo S nchez Gardey, 2005. "Researching on SHRM: An Analysis of the Debate over the Role Played by Human Resources in Firm Success," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(2), pages 213-241.
    11. den Hartog, D.N. & Boselie, J.P.P.E.F. & Paauwe, J., 2004. "Performance Management: A model and research agenda," ERIM Report Series Research in Management ERS-2004-068-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.
    12. Fernando Mart¡n Alc zar & Pedro Miguel Romero Fern ndez & Gonzalo S nchez Gardey, 2005. "Researching on SHRM: An Analysis of the Debate over the Role Played by Human Resources in Firm Success," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(2), pages 213-241.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Salman & Imran Anwar & Showkat Ahmad Ganie & Imran Saleem, 2024. "Impact of Human Resource Management Practices on Organizational Performance: Evidence From the Indian Banking Industry," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(1), pages 97-118, February.

    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. Marsden, David & Cañibano, Almudena, 2009. "Participation in organisations: economic approaches," LSE Research Online Documents on Economics 25167, London School of Economics and Political Science, LSE Library.
    2. Andreas Georgiadis & Christos N. Pitelis, 2010. "The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector," CEP Discussion Papers dp0972, Centre for Economic Performance, LSE.
    3. Sergio Salis & Allan M. Williams, 2010. "Knowledge Sharing through Face‐to‐Face Communication and Labour Productivity: Evidence from British Workplaces," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 436-459, June.
    4. Subash Chandra Pattnaik & Rashmita Sahoo, 2021. "High-performance Work Practices, Affective Commitment of Employees and Organizational Performance: A Multi-level Modelling Using 2-1-2 Mediation Analysis," Global Business Review, International Management Institute, vol. 22(6), pages 1594-1609, December.
    5. Justine Horgan & Peter Muehlau, 2005. "Human Resource Management and Performance: A Comparative Study of Ireland and the Netherlands," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(2), pages 242-258.
    6. Abdul Raziq, Retha Wiesner, 2016. "High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 83-107, October.
    7. Peng, George Z. & Beamish, Paul W., 2019. "Subnational FDI Legitimacy and Foreign Subsidiary Survival," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    8. Wei Chi & Richard B. Freeman & Morris M. Kleiner, 2011. "Adoption and Termination of Employee Involvement Programs," LABOUR, CEIS, vol. 25(1), pages 45-62, March.
    9. Qinghua Fu & Muhammad Safdar Sial & Muhammad Zulqarnain Arshad & Ubaldo Comite & Phung Anh Thu & József Popp, 2021. "The Inter-Relationship between Innovation Capability and SME Performance: The Moderating Role of the External Environment," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    10. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March.
    11. Dhanora, Madan & Sharma, Ruchi & Khachoo, Qayoom, 2018. "Non-linear impact of product and process innovations on market power: A theoretical and empirical investigation," Economic Modelling, Elsevier, vol. 70(C), pages 67-77.
    12. John Forth & Alex Bryson, 2019. "Management practices and SME performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(4), pages 527-558, September.
    13. Fiona Edgar & Alan Geare, 2010. "Characteristics of High- and Low-performing University Departments as Assessed by the New Zealand Performance Based Research Funding (PBRF) Exercise," Australian Accounting Review, CPA Australia, vol. 20(1), pages 55-63, March.
    14. Hatak, Isabella & Kautonen, Teemu & Fink, Matthias & Kansikas, Juha, 2016. "Innovativeness and family-firm performance: The moderating effect of family commitment," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 120-131.
    15. Preeya Mohan & Eric Strobl & Patrick Watson, 2017. "In-Firm Training, Innovation and Productivity: The Case of Caribbean Small Island Developing States," IDB Publications (Working Papers) 98136, Inter-American Development Bank.
    16. White, Michael & Bryson, Alex, 2018. "HPWS in the Public Sector: Are There Mutual Gains?," IZA Discussion Papers 11965, Institute of Labor Economics (IZA).
    17. Hallin, Christina & Holm, Ulf & Sharma, Dharma Deo, 2011. "Embeddedness of innovation receivers in the multinational corporation: Effects on business performance," International Business Review, Elsevier, vol. 20(3), pages 362-373, June.
    18. Fonseca, Tiago & de Faria, Pedro & Lima, Francisco, 2019. "Human capital and innovation: the importance of the optimal organizational task structure," Research Policy, Elsevier, vol. 48(3), pages 616-627.
    19. Malik, Ashish & Budhwar, Pawan & Kandade, Kiran, 2022. "Nursing excellence: A knowledge-based view of developing a healthcare workforce," Journal of Business Research, Elsevier, vol. 144(C), pages 472-483.
    20. Sharda, Kirti, 2011. "Back to the Drawing Board: Exploring Gestalts of Work Design in BPO Firms," IIMA Working Papers WP2011-02-04, Indian Institute of Management Ahmedabad, Research and Publication Department.

    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:sae:globus:v:21:y:2020:i:4:p:1087-1112. 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: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    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.