Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance

Abstract

The links between HRM practices and organizational performance have received considerable research attention as significant contributors to sustained competitive advantage. However, the processes that link HRM practices and organizational performance are not fully understood. This study examines the relationships between skill-enhancing, motivation-enhancing and opportunity-enhancing bundles of practices, innovation and organizational performance, and looks at the mediating effect of innovation over time at the workplace level. The results indicate that the temporal pathway from skill-enhancing practices to innovation to organizational performance is positive and significant even after controlling for reverse causality. Strategic activity is also explored and is found to be a significant moderator. This is an indication of the importance of aligning strategy with HRM practices and innovation to achieve improved organizational performance outcomes.

Human capital and innovation in Sub-Saharan countries: a firm-level study

“…Research about human capital predominantly considered the role of systems of human capital (Chowhan, 2016). Such a system consists of several components, which have been considered all together as having an impact on firm performance.…”

“…Previous studies pointed out that strategic activities have an effect on human capital and performance (Chowhan, 2016). Therefore, we control for two strategic activities, namely conducting research and development and if the firm is active in the international market by exporting.…”

“…We also control for the coordination with suppliers and customers, which has been indicated as a strategic activity by Chowhan (2016). The variable email measures if a firm communicates with its suppliers and customers by email.…”

A Multilevel Examination of High-Performance Work Systems and Organizational Citizenship Behavior: A Social Exchange Theory Perspective

“…HPWS refer to a group of separate but interconnected HR management practices, including comprehensive recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee involvement and training, which are designed to enhance employee and firm performance outcomes through improving workforce competence, attitudes, and motivation (Huselid, 1995). Previous studies have shown that HPWS can improve job satisfaction and organizational commitment (Takeuchi, Chen, & Lepak, 2009;Heffernan & Dundon, 2016), positively correlate with employee in-role behavior and organizational citizenship behavior (Miao, Zhou, Liu, & Li, 2013;Yan & Chen, 2016;Zhang & Long, 2017), and enhance the firm-level performance (Chowhan, 2016;Zhang & Long, 2017). Recognized by formal reward systems, in-role behavior is part of the requirements as described in job description, while organizational citizenship behavior (OCB) is "individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization" (Organ, 1989).…”

Los recursos humanos en las nuevas empresas internacionales. El papel del engagement

“…La GRRHH como área de conocimiento se encarga del estudio de las relaciones laborales, de la forma en que los individuos son gestionados en el trabajo (Paauwe, 2009) y de su influencia en el rendimiento de la empresa (Bowen y Ostroff, 2004;Chowhan, 2016). En un sentido amplio, la GRRHH se relaciona con la selección de políticas, prácticas y estructuras para gestionar a los empleados (Sisson, 1990;Boxall y Purcell, 2003), estando tradicionalmente orientada a las prácticas de RRHH individuales (Becker y Huselid, 2006;Jiang et al, 2012b).…”