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Market forces, strategic management, HRM practices and organizational performance, a model based in European sample


  • Rita Campos e Cunha
  • Miguel Pina e Cunha
  • Antonio Morgado
  • Chris Brewster


This study uses structural equation modeling to test a model of the impact of human resources management practices on perceived organizational performance, on a large sample of European companies. The influences of competitive intensity, industry attractiveness and strategic management are considered in the model, and their direct and indirect influence on organizational performance is assessed. The model produced an adequate fit and results show that strategic management does influence human resource practices. Human resource flexibility practices and performance management have a positive impact on organizational performance, while training was not found to have a significant impact. A direct positive impact of competitive intensity and industry attractiveness on strategic management was supported by the data, as well as a direct positive effect of industry attractiveness on perceived organizational performance.

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  • Rita Campos e Cunha & Miguel Pina e Cunha & Antonio Morgado & Chris Brewster, 2002. "Market forces, strategic management, HRM practices and organizational performance, a model based in European sample," FEUNL Working Paper Series wp415, Universidade Nova de Lisboa, Faculdade de Economia.
  • Handle: RePEc:unl:unlfep:wp415

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    References listed on IDEAS

    1. Birger Wernerfelt & Cynthia A. Montgomery, 1986. "What is an Attractive Industry?," Management Science, INFORMS, vol. 32(10), pages 1223-1230, October.
    2. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," Review of Economic Studies, Oxford University Press, vol. 69(1), pages 245-276.
    3. Richard A. Bettis & Michael A. Hitt, 1995. "The new competitive landscape," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 7-19.
    4. Luo, Yadong, 1998. "Industry Attractiveness, Firm Competence, and International Investment Performance in a Transitional Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 50(1), pages 73-82, January.
    5. David B. Balkin & Luis R. Gomezā€Mejia, 1990. "Matching compensation and organizational strategies," Strategic Management Journal, Wiley Blackwell, vol. 11(2), pages 153-169, February.
    6. Gerhart, B. & Milkovick, G.T., 1992. "Employee Compensation: Research and Practice," Papers 92-26, Cornell - Center for Advanced Human Resource Studies.
    7. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 529-554.
    8. Medcof, John W. & Needham, Brent, 1998. "The supra-organizational HRM system," Business Horizons, Elsevier, vol. 41(1), pages 43-50.
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    Cited by:

    1. Rita Campos e Cunha & Miguel Pina e Cunha, 2004. "Impact of strategy, HRM strength and HRM bundles on innovation performance and organizational performance," FEUNL Working Paper Series wp464, Universidade Nova de Lisboa, Faculdade de Economia.
    2. Stavrou, Eleni T. & Charalambous, Christakis & Spiliotis, Stelios, 2007. "Human resource management and performance: A neural network analysis," European Journal of Operational Research, Elsevier, vol. 181(1), pages 453-467, August.
    3. Mehmet Huseyin Bilgin & Chi Keung Marco Lau & Ender Demir, 2012. "Technology Transfer, Finance Channels, And Sme Performance: New Evidence From Developing Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(03), pages 1-20.
    4. Hazril Izwar IBRAHIM & Khairul Anuar Mohammad SHAH, 2013. "Effects of Organizational Characteristics Factors on the Implementation of Strategic Human Resource Practices: Evidence from Malaysian Manufacturing Firms," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 5-24, June.
    5. Cemal Zehir & Dogan Basar, 2016. "The Relation between Learning Orientation and Variables of Firm Performance with Strategic Human Resources Management Applications in the Islamic Banks in Turkey," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 40-52, March.

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