This study adopts the upper echelon and competitive dynamics perspectives to investigate the mechanisms by which strategic human resource management (SHRM) can create a competitive advantage for a firm. Top management team (TMT) social integration and action aggressiveness are identified as internal-oriented and external-oriented capabilities, respectively, for a teamwork-oriented executive SHRM system to support in enhancing firm performance. Structural equation modeling is performed to test hypothesized relationships. Statistical results demonstrate TMT social integration and action aggressiveness in sequence partially mediate the relationship of an executive SHRM system and firm performance. Action aggressiveness partially mediates the relationship of TMT social integration and firm performance. This study provides further insights into the SHRM, upper echelon, and competitive dynamics perspectives. The research findings also serve to remind top executives to remain alert in developing a set of teamwork-focused executive SHRM practices, building an integrated team, and proactively shaping competitive actions to outperform rivals.

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Recent research suggests that employees perceive organizational citizenship behaviour (OCB) as costly while OCB in the aggregate benefits organizations. Employees thus face an OCB dilemma. This study adopts the social dilemma perspective, proposing that employee OCB varies with the three types of psychological contracts (e.g., relational, balanced, and transactional) due to different degrees of perceived social dilemma and explains why employees engage in OCB in the context of varying levels of social dilemmas. We used moderated structural equation modelling to test the mediating and moderating hypotheses using data from 485 supervisor–subordinate dyads from 58 companies in a variety of industries in Taiwan. As predicted, results suggest that employee OCB has the strongest relationship with balanced psychological contract. Results also confirm the mediating role of felt obligations in both relational and balanced psychological contracts and the moderating role of empathic concerns in transactional psychological contract. We discuss the theoretical and practical implications of these results.

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