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Linking HRM competency to firm performance: an empirical investigation of Chinese firms
Hang-yue Ngo1; Chun-Yan Jiang2; Raymond Loi3
2014-08-26
Source PublicationPersonnel Review
ISSN0048-3486
Volume43Issue:6Pages:898-914
Abstract

Purpose – The purpose of this paper is to attempt to investigate the relationship between human resource management (HRM) competency and firm performance. Drawn upon the resource-based view and alignment theory, HRM competency is expected to be related to the adoption of high performance work systems (HPWS) and the achievement of external fit in HRM, which in turn contribute to firm performance. Design/methodology/approach – The data for this study were collected via a survey of in 157 Chinese enterprises located in the high technology development zone of three large cities. Two different respondents from each firm provided information about organizational characteristics, HRM policy and practices, and firm performance. Multiple regressions were used to test the hypotheses. Findings – Results indicate that HRM competency has a significant and positive effect on firm performance. Such an effect is found to be mediated by the achievement of external fit, but not the adoption of HPWS. Research limitations/implications – Limitations of the study include cross-sectional data, perceptual measure of firm performance, omission of external variables, and restricted sample. This study highlights the importance of HRM competency in strategic HRM, and provides evidence about how this construct is linked to firm performance. Originality/value – This is the first study that explores the effect of HRM competency on the adoption of HPWS and the achievement of external fit. It further reveals that the achievement of external fit mediates the relationship between HRM competency and firm performance, and hence contributes to the HRM literature.

KeywordQuantitative High Performance Work Systems Chinese Enterprises External Fit In Hrm Hrm Competency Firm Performance
DOI10.1108/PR-05-2013-0086
Indexed BySSCI
Language英语
WOS Research AreaBusiness & Economics ; Psychology
WOS SubjectIndustrial Relations & Labor ; Psychology, Applied ; Management
WOS IDWOS:000342004200005
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Citation statistics
Cited Times [WOS]:10   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionDEPARTMENT OF MANAGEMENT AND MARKETING
Corresponding AuthorHang-yue Ngo
Affiliation1.Department of Management, The Chinese University of Hong Kong, Hong Kong, China
2.Department of Human Resource Management, Nanjing University, Nanjing, China
3.Department of Management, University of Macau, Macau, China
Recommended Citation
GB/T 7714
Hang-yue Ngo,Chun-Yan Jiang,Raymond Loi. Linking HRM competency to firm performance: an empirical investigation of Chinese firms[J]. Personnel Review,2014,43(6):898-914.
APA Hang-yue Ngo,Chun-Yan Jiang,&Raymond Loi.(2014).Linking HRM competency to firm performance: an empirical investigation of Chinese firms.Personnel Review,43(6),898-914.
MLA Hang-yue Ngo,et al."Linking HRM competency to firm performance: an empirical investigation of Chinese firms".Personnel Review 43.6(2014):898-914.
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