High-performance human resource management and firm performance

Abstract

Purpose -Human resources have become a key issue in relation to the strong competition between service firms. Therefore, the purpose of this paper is to explore the relationship between high-performance human resource management (HRM) within this field to firm performance, making a useful attempt to explore the "black box" of enterprise human resources management effect on firm performance. Design/methodology/approach -In order to validate the relationship between high-performance HRM and firm performance, Chinese service industry samples were collected. Structural equation modeling and regression are adopted to estimate the direct effect of high-performance HRM on firm performance and the mediating role of innovation. Findings -The results show that the impacts of high-performance HRM on firm performance are significant. Moreover, innovation plays a partial mediating role between them. Training, work analysis and employee participation has a significantly positive impact on firm performance, while effects of profit sharing, employee development and performance evaluation on enterprise performance is not significant. The results strongly support the hypothesis that innovation holds intermediary variables between high-performance HRM and firm performance. Practical implications -Studying the relationship between high-performance HRM and firm performance can help Chinese enterprises more reasonable and effective learning foreign advanced management ideas and methods. And then can help Chinese enterprises to establish a high-performance HRM system that is suitable for Chinese enterprises; the research can help enterprises to identify meaningful practice of human resources management, outstanding keys, and perfect the HRM system of enterprises; research on innovation and innovative thinking is conducive to develop employees' innovation motive, promote employee' innovative behavior, and improve firm performance. Originality/value -This paper takes innovation as a mediating variable into the model and studies the intermediary role of innovation.

Human resource management in promoting innovation and organizational performance

“…The findings of Gil-Marques and Moreno-Luzon (2013) indicated that the practice of human resource management has a significant impact on innovation. It is in line with (Sheehan, Garavan, and Carbery (2013), Lu, Zhu, and Bao (2015) who said that HRM could make a positive contribution in helping the organizations to innovate. The results of research by Ma Prieto and Pilar Perez-Santana (2014) emphasized the vital role of HRM in fostering the innovative behavior because it can provide certainty that all functions in the organization can run well.…”

“…Also, the ability to develop the innovation can be predicted through the efforts by the organization to share the experiences and ideas (Mumford One of the management processes that can be done to exploit and perform the transformation of knowledge is by HRM. The HRM concept has been widely adopted in organizational practices (Glaister, Karacay, Demirbag, & Tatoglu, 2018; Okoe et al, 2018) and is proven to be able to provide organizational opportunities to get the right employees, so it facilitates the implementation of innovation (Lu et al, 2015;Nieves & Quintana, 2018;Okoe et al, 2018). Besides, various activities of HRM enable the employees to feel more justice because they are allowed to get training, sustainable performance assessment, and fair compensation.…”

“…Results of research conducted byNieves and Quintana (2016) showed that the implementation of recruitment and selection has a direct impact on innovation. Also,Lu et al (2015), analyzed the dimensions of HRM, and it was found that all aspects of HRM have a significant effect on innovation.…”

Servant Leadership Style and High-Performance Work System Practices: Pathway to a Sustainable Jordanian Airline Industry

“…The increasing popularity of HPWS can be attributed to the recognition of people as the most important source of competitive advantage [42][43][44], and the most critical aspect of human effort is to achieve sustainable results [23]. This study uses the term HPWS [45], but the concept has also been discussed by several authors using terms ranging from [46], high-performance work practices [47], high commitment work systems [48], high-performance human resource management [49], and system human resource management [50]. Scholars define HPWS as a mixture of HR practices that improve employee skills and motivations, impacting employee attitudes and outcomes [51,52].…”

The Role of High-Performance Work System on Career Success: Evidence from Jordan

“…Huang et al (2016) define HPWS as a comprehensive HR system oriented toward improving high performance through investment in employees. Lu et al (2015) expand the benefits of HPWS; they believe it improves employee motivation and satisfaction, and promotes enhanced performance. These benefits are symbiotic; organizations which use HR practices based on HPWS is a signal of their desire to establish a supportive relationship with their employees (Sun et al, 2007).…”