Strategic HRM in China: Configurations and competitive advantage

Abstract

The strategic HR literature suggests that a firm will perform better through internal appropriate fit among HRM practices (the configuration fit) and through external appropriate fit between a firm's HRM practices and business strategy. The present study adopts a configuration approach to identify unique patterns of HR practices and business strategy that are posited to be maximally effective. The proposed relationships were empirically tested by surveying with a sample of 241 business firms in Guangzhou, South China, to find out the extent that four HR configurations could be successfully adopted in the Chinese context. The results revealed that HR configurations are significantly related to effect in predicting overall outcome performance and turnover, but not significantly related to effect on sales growth and profit growth rates. Research findings showed not only competitive strategies are significantly related to effect on HR configurations. The results also showed significant interaction effects between HR configurations and business strategy in their effect on profit and sales growth. These results further extended support for a contingency perspective in strategic HRM to the Chinese context, with significant practical implications for managing HRM in China. © 2008 Wiley Periodicals, Inc.

High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan

“…Furthermore, the configurational approach has been supported by previous research studies (Chow, Huang, & Liu, 2008;Gould-Williams, 2003;Shih et al, 2006). For instance, the findings of Shih et al (2006) and Gould-Williams (2003) support the configurational perspective in a way that HPMP (employment security, selective hiring, team working, performance-related pay, training programs, participative work settings and incentive arrangements) work together to enhance organisational performance.…”

“…For instance, the findings of Shih et al (2006) and Gould-Williams (2003) support the configurational perspective in a way that HPMP (employment security, selective hiring, team working, performance-related pay, training programs, participative work settings and incentive arrangements) work together to enhance organisational performance. In addition, the study by Chow et al (2008) partially supports the notion that integrating HR configurations with business strategy enhances firm performance.…”

A theoretical model about the double strategic fit of the HRM strategy: Employees’ perceptions as connector between formulated and implemented HR practices

“…De la revisión de la literatura presentada en la sección anterior, podemos concluir que parece existir cierto consenso en cuanto a la conceptualización de los ajustes vertical y horizontal (Stavrou & Brewster, 2005;Verburg et al, 2007;Chow et al, 2008;Marchington et al, 2011;Wang, D.S. & Shyu, 2008).…”

The role of employee participation in generating and commercialising innovations: insights from Chinese high-tech firms

“…Skill-based rewards act as a non-monetary incentive, inasmuch as they motivate employees to acquire knowledge and skills. Promotion and development-based performance appraisal combined with skill-based pay can be associated with internal employee development (Chow, Huang, and Liu, 2008), facilitating acquisition of unique firm-specific knowledge (Wernerfelt, 1984). Each of the items was also dichotomised, and we added the items up to form constructs of monetary and nonmonetary rewards accordingly.…”

“…Barney and Zhang (2009) argue that the similarity of principles between countries, and the fact that there are only differences between elements such as cost-orientation, employee relationship, or motivational factors, means that Chinese management practices can be examined based on existing theories and 'Western' concepts. On the other hand, scholars such as Huo and Von Glinow (1995) and Chow et al (2008) …”