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Examining Non-Linear Relationships between Human Resource Practices and Manufacturing Performance

Author

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  • Clint Chadwick

Abstract

One little-explored question concerning innovative human resources practices is how the intensity of their implementation affects their impact on establishment performance: is the relationship linear, or more complex? This analysis, using U.S. Census Bureau data for 1997 from a sample of 1,212 private sector manufacturing establishments, investigates the possibility of non-linearities in the relationship between establishment performance and six human resource practices. The author finds departures from linearity that are both statistically significant and substantively meaningful for four of the six practices. He concludes that linear estimations of these relationships could mislead theorists and result in faulty recommendations to practitioners.

Suggested Citation

  • Clint Chadwick, 2007. "Examining Non-Linear Relationships between Human Resource Practices and Manufacturing Performance," ILR Review, Cornell University, ILR School, vol. 60(4), pages 499-521, July.
    • Handle: RePEc:sae:ilrrev:v:60:y:2007:i:4:p:499-521
    DOI: 10.1177/001979390706000403
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    References listed on IDEAS

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    1. 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.
    2. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Peter Cappelli & David Neumark, 2001. "Do “High-Performance†Work Practices Improve Establishment-Level Outcomes?," ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
    4. Jangwoo Lee & Danny Miller, 1999. "People matter: commitment to employees, strategy and performance in Korean firms," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 579-593, June.
    5. John Paul Macduffie, 1995. "Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry," ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
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    Cited by:

    1. Wangrow, David B. & Schepker, Donald J. & Barker, Vincent L., 2018. "Power, performance, and expectations in the dismissal of NBA coaches: A survival analysis study," Sport Management Review, Elsevier, vol. 21(4), pages 333-346.
    2. Armbruster, Kathrin & Beckmann, Michael & Kuhn, Dieter, 2012. "Task Allocation and Corporate Performance : is There a First-Mover Advantage?," Working papers 2012/07, Faculty of Business and Economics - University of Basel.
    3. Clint Chadwick & Ji-Young Ahn & Kiwook Kwon, 2012. "Human Resource Management’s Effects on Firm-Level Relative Efficiency," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(3), pages 704-730, July.

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