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

Listed author(s):
  • Cunha, Rita Campos e
  • Cunha, Miguel Pina e
  • Morgado, Antonio
  • Brewster, Chris

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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Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp415.

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Length: 44 pages
Date of creation: 2002
Handle: RePEc:unl:unlfep:wp415
Contact details of provider: Postal:
Campus de Campolide, 1099-032 Lisboa

Phone: (351) 21 3801638
Fax: (351) 21 3870933
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  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. 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.
  4. Gerhart, B. & Milkovick, G.T., 1992. "Employee Compensation: Research and Practice," Papers 92-26, Cornell - Center for Advanced Human Resource Studies.
  5. 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.
  6. Medcof, John W. & Needham, Brent, 1998. "The supra-organizational HRM system," Business Horizons, Elsevier, vol. 41(1), pages 43-50.
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