Interconnection of Strategic Integration, Hrm Effectiveness and Market Performance: Evidence From Banking Sector of Pakistan

Abstract

The main aim of current study is to highlight the effects of strategic integration (SI) of HRM on HRM effectiveness (HRME) and market performance (MP) in banking sector of Pakistan. In addition, the mediating role of HRME and moderating role of market orientation (MO) were also tested. A structured and standardized measures were used to gather data from the officers working in banking sector of Pakistan. It was found that both vertical and horizontal integration of HRM positively affected HRME and MP of the banks. The results revealed that HRME mediates the relationship of SI of HRM and MP. In addition, it was also observed that by nurturing a market-oriented culture, the organizations can further strengthen the relationship between SI of HRM and MP. This study added valuable inputs into the existing research on the SHRM integration and its effects on MP of the firms by incorporating the moderating role of MO and mediating role of HRME. The results suggested that SI of HRM along with MO within an organization will not only improve the HRME, it will also lead to better MP.