Description
Independently of the strategy followed to define the relevant HRM indicators, the empirical literature to date has generally provided with supportive evidence on the existence of positive relationships between at least one specific dimension of firms' economic performance and certain Human Resources Management (HRM) practices (Brewster and Mayrhofer, 2012 provide a comprehensive updated review). However, only few multivariate analyses have been performed considering at the same time the configuration of these practices, the contingency variables of the organization, together with the institutional context in which these practices are implemented and their impact on organizational performance.
THE IMPACT OF HRM PRACTICES ON ORGANIZATIONAL PERFORMANCE: A GENERAL MODEL AND A
TEST FOR URUGUAY
INTRODUCTION
Independently of the t!"te#y follo$ed to def%ne the !ele&"nt HRM %nd%'"to!( the e)p%!%'"l l%te!"t*!e to d"te h" #ene!"lly
p!o&%ded $%th *ppo!t%&e e&%den'e on the e+%ten'e of po%t%&e !el"t%onh%p ,et$een "t le"t one pe'%f%' d%)en%on of
f%!)- e'ono)%' pe!fo!)"n'e "nd 'e!t"%n H*)"n Reo*!'e M"n"#e)ent .HRM/ p!"'t%'e .0!e$te! "nd M"y!hofe!( 1231
p!o&%de " 'o)p!ehen%&e *pd"ted !e&%e$/4 Ho$e&e!( only fe$ )*lt%&"!%"te "n"lye h"&e ,een pe!fo!)ed 'on%de!%n# "t the
")e t%)e the 'onf%#*!"t%on of thee p!"'t%'e( the 'ont%n#en'y &"!%",le of the o!#"n%5"t%on( to#ethe! $%th the %nt%t*t%on"l
'onte+t %n $h%'h thee p!"'t%'e "!e %)ple)ented "nd the%! %)p"'t on o!#"n%5"t%on"l pe!fo!)"n'e4 Th% p"pe! %nt!od*'e "
tet",le #ene!"l theo!et%'"l )odel "nd *))"!%5e the !e*lt of " e!%e of e)p%!%'"l "n"lye( *%n# d"t" fo! U!*#*"y4
Re'ent %nt%t*t%on"l 'h"n#e th"t h"&e t"6en pl"'e %n U!*#*"y t"!t%n# %n 1227 p!o&%de " *n%8*e oppo!t*n%ty to "n"ly5e
HRM *nde! d%ffe!ent 'onte+t of %nd*t!%"l !el"t%on( 'olle't%&e ,"!#"%n%n# "nd %n'!e"%n# *n%on%5"t%on4 The #ene!"l )odel
%nt!od*'ed l%n6 the p!o,",%l%ty of "tt"%n%n# " 'e!t"%n le&el of f%!) pe!fo!)"n'e to H*)"n Reo*!'e M"n"#e)ent .HRM/
p!"'t%'e( $h%le 'ont!oll%n# fo! d%&e!e 'h"!"'te!%t%' !el"ted to *n%on%5"t%on " $ell " fo! othe! 'ont%n#en'y &"!%",le4
P"!t%'*l"! e)ph"% % "lo et on the e+%ten'e of 'o)ple)ent"!%t%e ")on# p!"'t%'e4 9%th%n e)p%!%'"l t*d%e( th% %*e
%n&ol&e %n'l*d%n# HRM p!"'t%'e %nte!"'t%n# %nd%&%d*"lly o! ,y *,et( **"lly %n ,*ndle:'onf%#*!"t%on p!e&%o*ly
%dent%f%ed ,y d%ffe!ent t"t%t%'"l )ethod4
The U!*#*"y"n e&%den'e % )odeled "lon# thee l%ne( ,"ed on " ")ple of 1;< 'o)p"n%e $%th )o!e th"n 72 e)ployee(
)ot of the) SME "''o!d%n# to %nte!n"t%on"l t"nd"!d ,*t nonethele the l"!#et f%!) %n the 'o*nt!y4
The ne+t e't%on % de&oted to !e&%e$ the l%te!"t*!e on thee t$o top%' th"t %n t*!n =*t%f%e the pe'%f%'"t%on of the e)p%!%'"l
)odel "nd %t "ppl%'"t%on to U!*#*"y4 A de'!%pt%on of the %nfo!)"t%on et "nd the def%n%t%on of the &"!%",le th"t "!e
%n'l*ded %n Se't%on >4 In Se't%on < the o*t'o)e of the et%)"ted )odel % d%'*ed $h%le the )ot !ele&"nt 'on'l*%on "!e
*))"!%5ed %n the f%n"l e't%on4
14 LITERATURE RE?IE9
1434 HRM "nd O!#"n%5"t%on"l Pe!fo!)"n'e
The !epo!ted e&%den'e fo! the US .ee Ge!h"!t( 1227/ *##et th"t l",o! p!od*'t%&%ty "nd
! o!#"n%5"t%on"l pe!fo!)"n'e "!e
po%t%&ely !el"ted to d%&e!e fe"t*!e of HR )"n"#e)ent yte) *'h " !e'!*%t)ent "nd ele't%on .@o'h y M'G!"th(
1
3AAB/C t!"%n%n# p!o#!") .0"!tel( 3AA/4 Ho$e&e!( the "*)pt%on h" l%ttle e)p%!%'"l *ppo!t e+'ept %n the '"e of "'t%&%t%e !el"ted to p"y "nd
'o))*n%'"t%on )ethod th"t #%&e d%!e't &o%'e to $o!6e! .God"!d( 122AC M"'h%n "nd 9ood( 1227/( o! the *e of I$o!d of
)o*th- " " !e'!*%t)ent o*!'e th"t h" ,e'o)e " p!o)%nent p!"'t%'e %n *n%on%5ed f!")e$o!6( " % the '"e of Ind%"
.0*dh$"! M @h"t!%( 1221/4 So)e "*tho! h"&e "!#*ed th"t the %)ple)ent"t%on of o)e HR p!"'t%'e )"y %n 'ont!"t
#ene!"te " G)*t*"l #"%nH $%th *n%on pl"y%n# " )o!e p"!tne!h%pEo!%ented !ole %nte"d of the%! t!"d%t%on"l "d&e!"!%"l
po%t%on%n# .ee the !e&%e$ %n G%ll( 122A/4
The 'ont%n#ent 'h"!"'te! of )"n"#e)ent h" ,een "lo "o'%"ted to othe! o!#"n%5"t%on"l 'h"!"'te!%t%'( *'h " the f%!)-
e'ono)%' "'t%&%ty .e4#4( %n 0loo) "nd ?"n Reenen( 122;/C "le )"!6et .e4#4( %n Ote!)"n( 3AA/ A!e the!e 'o)ple)ent"!%t%e ")on# d%ffe!ent ,*ndle of HRM p!"'t%'eN
/4
A''o!d%n# to thee t*d%e( the )ot $%dep!e"d p!"'t%'e( ,oth '*!!ently "nd %n the p"t( "!e !el"ted to !e'!*%t)ent "nd
t!"%n%n#( " oppoed to the *e of )onet"!y p!e)%" ,"ed on %nd%&%d*"l:te") pe!fo!)"n'e o! oph%t%'"ted pe!fo!)"n'e
e&"l*"t%on yte)4 Ho$e&e!( the p"tte!n d%ffe! ")on# f%!) depend%n# on e&e!"l fe"t*!e( *'h " f")%ly( n"t%on"l o!
'o!po!"te o$ne!h%pC %5eC "le )"!6etC "nd e'ono)%' e'to!C $h%le %t "lo depend on the f%!) h"&%n# o! not " HR
dep"!t)ent4 A h%#he! de#!ee of fo!)"l%ty "nd p!ofe%on"l%) of HRM % fo*nd ")on# l"!#e 'o!po!"t%on( nonEf")%lyE
o$ned f%!) th"t h"&e " fo!)"l HR d%&%%on( ope!"t%n# %n the e!&%'e e'to! "nd
! o!%ented to the %nte!n"t%on"l )"!6et
.Rod!%#*e5EG*tJ et al. 122>C Font( 1232/4
The !el"t%onh%p ,et$een e'ono)%'
!#"n%5"t%on"l pe!fo!)"n'e "nd HRM h" ,een e+plo!ed ,y Font .1232/ "nd ,y the
"*tho! of th% p"pe! (references available) *%n# t$o d%t%n't )ethodolo#%e4 Me"*!ed " the elfE!"n6%n# !el"t%&e to %t
'o)pet%to! %n te!) of p!of%t",%l%tyC l",o! p!od*'t%&%tyC "nd 8*"l%ty of the p!od*'t:e!&%'e( f%!) pe!fo!)"n'e % e+")%ned
%n !el"t%on to %nd%&%d*"l HRM p!"'t%'e .!e'!*%t)entC t!"%n%n#C pe!fo!)"n'e e&"l*"t%onC "nd )onet"!y p"y)ent/4 Font
f*!the! 'on%de! e&e!"l "dd%t%on"l fe"t*!e th"t "!e #!o*ped *%n# f"'to! "n"ly% to ,*%ld %nd%'"to! of I,et p!"'t%'e- "nd
7
dep%te the #ene!"l 'on'l*%on po%nt "t p!ofe%on"l HRM ,e%n# )"t'hed to "n %)p!o&ed f%!) e'ono)%'
!#"n%5"t%on"l
pe!fo!)"n'e( the fo*! 'onf%#*!"t%on o,t"%ned '"nnot ,e *n"),%#*o*ly o!de!ed %n te!) of I,et p!"'t%'e-( e+'ept fo!
f%!) %n the 'l*te! denoted " Ilo$Ep!of%le-4
P!e&%o*ly( L","d%e .1227/ h"d hypothe%5ed th"t the l%n6"#e ,et$een HRM p!"'t%'e "nd pe!fo!)"n'e "!e %nfl*en'ed ,y
the o&e!"ll %nt%t*t%on"l f!")e$o!6 of l",o! !el"t%on "nd p"!t%'*l"!ly ,y the !ole pl"yed ,y HR dep"!t)ent %n !el"t%on to
t!"de *n%on4 The "dd%t%on"l %n%#ht p!o&%ded %n Font .1232/ "lo po%nt %n th"t d%!e't%on $h%le they f*!the! *##et th"t the
t!*'t*!e of ,"!#"%n%n# "nd %t 'ont%n*%ty %n t%)e h"&e "lo " )"=o! %n'%den'e4
141414 HRM "nd Ind*t!%"l !el"t%on %n U!*#*"y
M"=o! %nt%t*t%on"l 'h"n#e h"&e 'h"!"'te!%5ed the %nd*t!%"l !el"t%on yte) %n U!*#*"y4 St"!t%n# %n 3AK7 U!*#*"yP
*n%8*e yte) of 9"#e Co*n'%l $" !eE%nt%t*ted "fte! "l)ot 37 ye"! "lon# $h%'h 'olle't%&e ,"!#"%n%n# $" ",ent #%&en
th"t the 3A;> )%l%t"!y 'o*p h"d ,"nned *n%on4 The t!"d%t%on"l yte) ope!"ted )"%nly th!o*#h " yte) of t!%l"te!"l
ne#ot%"t%on O *n%on( e)ploye!P !ep!eent"t%&e "nd #o&e!n)ent E $%th%n $"#e 'o*n'%l ,y %nd*t!y4 M%n%)*) $"#e ,y
=o, '"te#o!y $e!e et th!o*#h 'olle't%&e "#!ee)ent "nd endo!ed ,y the #o&e!n)ent to "ll f%!) $%th%n the e'to!4 The
yte) %)pl%ed th"t fo! )ot SME the le&el "nd t%)%n# of $"#e ett%n# $e!e lo'"ted o*t%de the ,o*nd"!%e of f%!)
de'%%onE)"6%n#( ,y the ne#ot%"to! of the l"!#e! 'o)p"n%e th"t $e!e !ep!eented %n the e)ploye!P "o'%"t%on .ee
f*!the! det"%l %n C"on% et al4( 1224 P!od*'t%&%ty )odel O Et%)"ted 'oeff%'%ent fo! 'ont!ol &"!%",le
?"!%",le Coef4
Se'to!: M"n*f"'t*!%n# M Cont!*'t%on %nd*t!%e E34A
SSS
Se'to!:Se!&%'e E14<
SSS
Med%*)E%5ed .,et$een 72 "nd AA $o!6e!/ E342
SSS
F")%lyEo$ne!h%p E241
N"t%on"lEo$ne!h%p 24>
Co!po!"te n"t*!e 24<
Lo'"lE)"!6et o!%ented 342
SSS
H%#h *n%on %nfl*en'e "t f%!) E343
SS
In'!e"ed *n%on %nfl*en'e "t f%!) E24<
Co)pet%t%&e "d&"nt"#e E "ll 342
SSS
Note:
S
:
SS
:
SSS
!efe! to pT2437C pT2432C pT2427( !epe't%&ely4 The f*ll o*tp*t % "&"%l",le *pon !e8*et4
The )odel % ",le to %dent%fy e&e!"l l%n6"#e ,et$een p!od*'t%&%ty "nd d%&e!e d%)en%on of HR )"n"#e)ent th"t %n&ol&e
,oth '"l'*l"t%&e "nd 'oll",o!"t%&e p!"'t%'e( e%the! %nd%&%d*"lly o! %n ,*ndle .T",le A.E114
0l"'6( S4E4 "nd L4 Lyn'h .1223/4 IHo$ to 'o)pete: The %)p"'t of $o!6pl"'e p!"'t%'e "nd %nfo!)"t%on te'hnolo#y on
16
p!od*'t%&%ty-( eview of !conomics and %tatistics K>: /: 1>AE17A4
0!e$te!( C4L4 .3AA7/4 ITo$"!d " IE*!ope"n- Model of H*)"n Reo*!'e M"n"#e)ent-( Journal of International 'usiness
%tudies 1B .3/: 3E134
0!e$te!( C4 L4 "nd 94 M"y!hofe! .ed4/ .1231/4 Handboo( of esearch on )om#arative Human esource Management(
Cheltenh"): Ed$"!d El#"! P*,l%h%n# In'4
0!e$te!( C4 L4( 94 M"y!hofe! "nd4 M4 Mo!ley .ed4/ .122.7/: K22OK1B4
0*dh$"!( P4S4 "nd P4R4 Sp"!!o$ .1221/4 IAn %nte#!"t%&e f!")e$o!6 fo! *nde!t"nd%n# '!oEn"t%on"l h*)"n !eo*!'e
)"n"#e)ent p!"'t%'e-( Human esource Management eview 31: >;;O4
C"ppell%( P4 "nd D4 Ne*)"!6 .1223/4 IDo IH%#hEPe!fo!)"n'e- 9o!6 P!"'t%'e I)p!o&e Et",l%h)entELe&el O*t'o)eN-(
Industrial and ,abor elations eview 7/4 IF%t( E8*%f%n"l%ty( "nd O!#"n%5"t%on"l Effe't%&ene: A Tet of T$o
Conf%#*!"t%on"l Theo!%e-( Academy of Management Journal >B.B/: 33ABO31724
D!*6e!( L4 "nd G4 9h%te .3AA7/4 I0*%ld%n# "nothe! 9o!6%n# St!*'t*!e-( "eo#le Management 3.K/: 11E1;4
Ed$"!d( R4 C4 .3A;A/4 )ontested Terrain* the Transformation of the -or(#lace in the Twentieth )entury( London:
He%ne)"nn4
El&%!"( M4 M4 "nd A4 D"&%l" .1227/4 IE)e!#ent D%!e't%on fo! H*)"n Reo*!'e M"n"#e)ent Ree"!'h %n L"t%n A)e!%'"-(
International Journal of Human esource Management 3B.31/: 11B7E11K14
F"!nd"le( E4 "nd L4 P""*$e .122B/4 I0et P!"'t%'e &e!* 0et F%t HRM: 9%th%n "nd A'!o MNC Co)p"!%on-( 9o!6%n#
P"pe! %n H*)"n Reo*!'e M"n"#e)ent 3;4
Fo),!*n( C4 L4( N4 M4( T%'hy "nd M4 A4 De&"nn" .3AK2E>3( L%,on( Po!t*#"l4
Ge!h"!t( 04 .122;"/4 IHo!%5ont"l "nd ?e!t%'"l F%t %n H*)"n Reo*!'e Syte)-4 In C4 Ot!off "nd T4 L*d#e .ed4/4
"ers#ectives on 3rgani4ational 5it4 Ne$ Yo!6: L"$!en'e E!l,"*) Ao'%"te P*,l%he!4
Ge!h"!t( 04 .122;,/4 IModel%n# HRM "nd Pe!fo!)"n'e L%n6"#e-4 In P4 0o+"ll( L4 P*!'ell( "nd P4 9!%#ht .ed4/( The
36ford Handboo( of Human esource Management4 O+fo!d: O+fo!d Un%&4 P!e4
Ge!h"!t( 04 .1227/4 IH*)"n Reo*!'e "nd 0*%ne Pe!fo!)"n'e: F%nd%n#( Un"n$e!ed R*et%on ( "nd "n Alte!n"t%&e
App!o"'h-( Management evue 3B .1/: 3;A.B/: 3BA1E3;314
G%ll( C4 .122A/4 IUn%on I)p"'t on the Effe't%&e Adopt%on of H%#h Pe!fo!)"n'e 9o!6 P!"'t%'e-( Human esource
Management eview 3A.3/: >AE724
God"!d( L4 .122A/4 IInt%t*t%on"l En&%!on)ent( 9o!6 "nd H*)"n Reo*!'e P!"'t%'e( "nd Un%on: C"n"d" &e!* En#l"nd-(
Industrial 7 ,abor elations eview B1.1/: 3;>E3AA4
God"!d( L4 .122>7E>7/4 IP!J't%'" de Get%Dn de Re'*!o
H*)"no en U!*#*"y: *n AnJl%% C*"nt%t"t%&o-( elaciones ,aborales 3: 3>E>Q
Re'!*%t)ent: Inte!n"l to the f%!) 34< >43Q Re'!*%t)ent: 9o!d of )o*th
%nfo!)"t%on
34K 14AQ Co))*n4 flo$: Othe! $o!6e! 342 14 741Q E&"l*"t%on A4< 134B
Q A't*"l 6%ll 24
F*t*!eEo!%ented 2471 Go"l: p!o)ot%on 24KA
P!o&en e+pe!%en'e 24
Independently of the strategy followed to define the relevant HRM indicators, the empirical literature to date has generally provided with supportive evidence on the existence of positive relationships between at least one specific dimension of firms' economic performance and certain Human Resources Management (HRM) practices (Brewster and Mayrhofer, 2012 provide a comprehensive updated review). However, only few multivariate analyses have been performed considering at the same time the configuration of these practices, the contingency variables of the organization, together with the institutional context in which these practices are implemented and their impact on organizational performance.
THE IMPACT OF HRM PRACTICES ON ORGANIZATIONAL PERFORMANCE: A GENERAL MODEL AND A
TEST FOR URUGUAY
INTRODUCTION
Independently of the t!"te#y follo$ed to def%ne the !ele&"nt HRM %nd%'"to!( the e)p%!%'"l l%te!"t*!e to d"te h" #ene!"lly
p!o&%ded $%th *ppo!t%&e e&%den'e on the e+%ten'e of po%t%&e !el"t%onh%p ,et$een "t le"t one pe'%f%' d%)en%on of
f%!)- e'ono)%' pe!fo!)"n'e "nd 'e!t"%n H*)"n Reo*!'e M"n"#e)ent .HRM/ p!"'t%'e .0!e$te! "nd M"y!hofe!( 1231
p!o&%de " 'o)p!ehen%&e *pd"ted !e&%e$/4 Ho$e&e!( only fe$ )*lt%&"!%"te "n"lye h"&e ,een pe!fo!)ed 'on%de!%n# "t the
")e t%)e the 'onf%#*!"t%on of thee p!"'t%'e( the 'ont%n#en'y &"!%",le of the o!#"n%5"t%on( to#ethe! $%th the %nt%t*t%on"l
'onte+t %n $h%'h thee p!"'t%'e "!e %)ple)ented "nd the%! %)p"'t on o!#"n%5"t%on"l pe!fo!)"n'e4 Th% p"pe! %nt!od*'e "
tet",le #ene!"l theo!et%'"l )odel "nd *))"!%5e the !e*lt of " e!%e of e)p%!%'"l "n"lye( *%n# d"t" fo! U!*#*"y4
Re'ent %nt%t*t%on"l 'h"n#e th"t h"&e t"6en pl"'e %n U!*#*"y t"!t%n# %n 1227 p!o&%de " *n%8*e oppo!t*n%ty to "n"ly5e
HRM *nde! d%ffe!ent 'onte+t of %nd*t!%"l !el"t%on( 'olle't%&e ,"!#"%n%n# "nd %n'!e"%n# *n%on%5"t%on4 The #ene!"l )odel
%nt!od*'ed l%n6 the p!o,",%l%ty of "tt"%n%n# " 'e!t"%n le&el of f%!) pe!fo!)"n'e to H*)"n Reo*!'e M"n"#e)ent .HRM/
p!"'t%'e( $h%le 'ont!oll%n# fo! d%&e!e 'h"!"'te!%t%' !el"ted to *n%on%5"t%on " $ell " fo! othe! 'ont%n#en'y &"!%",le4
P"!t%'*l"! e)ph"% % "lo et on the e+%ten'e of 'o)ple)ent"!%t%e ")on# p!"'t%'e4 9%th%n e)p%!%'"l t*d%e( th% %*e
%n&ol&e %n'l*d%n# HRM p!"'t%'e %nte!"'t%n# %nd%&%d*"lly o! ,y *,et( **"lly %n ,*ndle:'onf%#*!"t%on p!e&%o*ly
%dent%f%ed ,y d%ffe!ent t"t%t%'"l )ethod4
The U!*#*"y"n e&%den'e % )odeled "lon# thee l%ne( ,"ed on " ")ple of 1;< 'o)p"n%e $%th )o!e th"n 72 e)ployee(
)ot of the) SME "''o!d%n# to %nte!n"t%on"l t"nd"!d ,*t nonethele the l"!#et f%!) %n the 'o*nt!y4
The ne+t e't%on % de&oted to !e&%e$ the l%te!"t*!e on thee t$o top%' th"t %n t*!n =*t%f%e the pe'%f%'"t%on of the e)p%!%'"l
)odel "nd %t "ppl%'"t%on to U!*#*"y4 A de'!%pt%on of the %nfo!)"t%on et "nd the def%n%t%on of the &"!%",le th"t "!e
%n'l*ded %n Se't%on >4 In Se't%on < the o*t'o)e of the et%)"ted )odel % d%'*ed $h%le the )ot !ele&"nt 'on'l*%on "!e
*))"!%5ed %n the f%n"l e't%on4
14 LITERATURE RE?IE9
1434 HRM "nd O!#"n%5"t%on"l Pe!fo!)"n'e
The !epo!ted e&%den'e fo! the US .ee Ge!h"!t( 1227/ *##et th"t l",o! p!od*'t%&%ty "nd

po%t%&ely !el"ted to d%&e!e fe"t*!e of HR )"n"#e)ent yte) *'h " !e'!*%t)ent "nd ele't%on .@o'h y M'G!"th(
1
3AAB/C t!"%n%n# p!o#!") .0"!tel( 3AA/4 Ho$e&e!( the "*)pt%on h" l%ttle e)p%!%'"l *ppo!t e+'ept %n the '"e of "'t%&%t%e !el"ted to p"y "nd
'o))*n%'"t%on )ethod th"t #%&e d%!e't &o%'e to $o!6e! .God"!d( 122AC M"'h%n "nd 9ood( 1227/( o! the *e of I$o!d of
)o*th- " " !e'!*%t)ent o*!'e th"t h" ,e'o)e " p!o)%nent p!"'t%'e %n *n%on%5ed f!")e$o!6( " % the '"e of Ind%"
.0*dh$"! M @h"t!%( 1221/4 So)e "*tho! h"&e "!#*ed th"t the %)ple)ent"t%on of o)e HR p!"'t%'e )"y %n 'ont!"t
#ene!"te " G)*t*"l #"%nH $%th *n%on pl"y%n# " )o!e p"!tne!h%pEo!%ented !ole %nte"d of the%! t!"d%t%on"l "d&e!"!%"l
po%t%on%n# .ee the !e&%e$ %n G%ll( 122A/4
The 'ont%n#ent 'h"!"'te! of )"n"#e)ent h" ,een "lo "o'%"ted to othe! o!#"n%5"t%on"l 'h"!"'te!%t%'( *'h " the f%!)-
e'ono)%' "'t%&%ty .e4#4( %n 0loo) "nd ?"n Reenen( 122;/C "le )"!6et .e4#4( %n Ote!)"n( 3AA/ A!e the!e 'o)ple)ent"!%t%e ")on# d%ffe!ent ,*ndle of HRM p!"'t%'eN
/4
A''o!d%n# to thee t*d%e( the )ot $%dep!e"d p!"'t%'e( ,oth '*!!ently "nd %n the p"t( "!e !el"ted to !e'!*%t)ent "nd
t!"%n%n#( " oppoed to the *e of )onet"!y p!e)%" ,"ed on %nd%&%d*"l:te") pe!fo!)"n'e o! oph%t%'"ted pe!fo!)"n'e
e&"l*"t%on yte)4 Ho$e&e!( the p"tte!n d%ffe! ")on# f%!) depend%n# on e&e!"l fe"t*!e( *'h " f")%ly( n"t%on"l o!
'o!po!"te o$ne!h%pC %5eC "le )"!6etC "nd e'ono)%' e'to!C $h%le %t "lo depend on the f%!) h"&%n# o! not " HR
dep"!t)ent4 A h%#he! de#!ee of fo!)"l%ty "nd p!ofe%on"l%) of HRM % fo*nd ")on# l"!#e 'o!po!"t%on( nonEf")%lyE
o$ned f%!) th"t h"&e " fo!)"l HR d%&%%on( ope!"t%n# %n the e!&%'e e'to! "nd

.Rod!%#*e5EG*tJ et al. 122>C Font( 1232/4
The !el"t%onh%p ,et$een e'ono)%'

"*tho! of th% p"pe! (references available) *%n# t$o d%t%n't )ethodolo#%e4 Me"*!ed " the elfE!"n6%n# !el"t%&e to %t
'o)pet%to! %n te!) of p!of%t",%l%tyC l",o! p!od*'t%&%tyC "nd 8*"l%ty of the p!od*'t:e!&%'e( f%!) pe!fo!)"n'e % e+")%ned
%n !el"t%on to %nd%&%d*"l HRM p!"'t%'e .!e'!*%t)entC t!"%n%n#C pe!fo!)"n'e e&"l*"t%onC "nd )onet"!y p"y)ent/4 Font
f*!the! 'on%de! e&e!"l "dd%t%on"l fe"t*!e th"t "!e #!o*ped *%n# f"'to! "n"ly% to ,*%ld %nd%'"to! of I,et p!"'t%'e- "nd
7
dep%te the #ene!"l 'on'l*%on po%nt "t p!ofe%on"l HRM ,e%n# )"t'hed to "n %)p!o&ed f%!) e'ono)%'

pe!fo!)"n'e( the fo*! 'onf%#*!"t%on o,t"%ned '"nnot ,e *n"),%#*o*ly o!de!ed %n te!) of I,et p!"'t%'e-( e+'ept fo!
f%!) %n the 'l*te! denoted " Ilo$Ep!of%le-4
P!e&%o*ly( L","d%e .1227/ h"d hypothe%5ed th"t the l%n6"#e ,et$een HRM p!"'t%'e "nd pe!fo!)"n'e "!e %nfl*en'ed ,y
the o&e!"ll %nt%t*t%on"l f!")e$o!6 of l",o! !el"t%on "nd p"!t%'*l"!ly ,y the !ole pl"yed ,y HR dep"!t)ent %n !el"t%on to
t!"de *n%on4 The "dd%t%on"l %n%#ht p!o&%ded %n Font .1232/ "lo po%nt %n th"t d%!e't%on $h%le they f*!the! *##et th"t the
t!*'t*!e of ,"!#"%n%n# "nd %t 'ont%n*%ty %n t%)e h"&e "lo " )"=o! %n'%den'e4
141414 HRM "nd Ind*t!%"l !el"t%on %n U!*#*"y
M"=o! %nt%t*t%on"l 'h"n#e h"&e 'h"!"'te!%5ed the %nd*t!%"l !el"t%on yte) %n U!*#*"y4 St"!t%n# %n 3AK7 U!*#*"yP
*n%8*e yte) of 9"#e Co*n'%l $" !eE%nt%t*ted "fte! "l)ot 37 ye"! "lon# $h%'h 'olle't%&e ,"!#"%n%n# $" ",ent #%&en
th"t the 3A;> )%l%t"!y 'o*p h"d ,"nned *n%on4 The t!"d%t%on"l yte) ope!"ted )"%nly th!o*#h " yte) of t!%l"te!"l
ne#ot%"t%on O *n%on( e)ploye!P !ep!eent"t%&e "nd #o&e!n)ent E $%th%n $"#e 'o*n'%l ,y %nd*t!y4 M%n%)*) $"#e ,y
=o, '"te#o!y $e!e et th!o*#h 'olle't%&e "#!ee)ent "nd endo!ed ,y the #o&e!n)ent to "ll f%!) $%th%n the e'to!4 The
yte) %)pl%ed th"t fo! )ot SME the le&el "nd t%)%n# of $"#e ett%n# $e!e lo'"ted o*t%de the ,o*nd"!%e of f%!)
de'%%onE)"6%n#( ,y the ne#ot%"to! of the l"!#e! 'o)p"n%e th"t $e!e !ep!eented %n the e)ploye!P "o'%"t%on .ee
f*!the! det"%l %n C"on% et al4( 1224 P!od*'t%&%ty )odel O Et%)"ted 'oeff%'%ent fo! 'ont!ol &"!%",le
?"!%",le Coef4
Se'to!: M"n*f"'t*!%n# M Cont!*'t%on %nd*t!%e E34A
SSS
Se'to!:Se!&%'e E14<
SSS
Med%*)E%5ed .,et$een 72 "nd AA $o!6e!/ E342
SSS
F")%lyEo$ne!h%p E241
N"t%on"lEo$ne!h%p 24>
Co!po!"te n"t*!e 24<
Lo'"lE)"!6et o!%ented 342
SSS
H%#h *n%on %nfl*en'e "t f%!) E343
SS
In'!e"ed *n%on %nfl*en'e "t f%!) E24<
Co)pet%t%&e "d&"nt"#e E "ll 342
SSS
Note:
S
:
SS
:
SSS
!efe! to pT2437C pT2432C pT2427( !epe't%&ely4 The f*ll o*tp*t % "&"%l",le *pon !e8*et4
The )odel % ",le to %dent%fy e&e!"l l%n6"#e ,et$een p!od*'t%&%ty "nd d%&e!e d%)en%on of HR )"n"#e)ent th"t %n&ol&e
,oth '"l'*l"t%&e "nd 'oll",o!"t%&e p!"'t%'e( e%the! %nd%&%d*"lly o! %n ,*ndle .T",le A.E114
0l"'6( S4E4 "nd L4 Lyn'h .1223/4 IHo$ to 'o)pete: The %)p"'t of $o!6pl"'e p!"'t%'e "nd %nfo!)"t%on te'hnolo#y on
16
p!od*'t%&%ty-( eview of !conomics and %tatistics K>: /: 1>AE17A4
0!e$te!( C4L4 .3AA7/4 ITo$"!d " IE*!ope"n- Model of H*)"n Reo*!'e M"n"#e)ent-( Journal of International 'usiness
%tudies 1B .3/: 3E134
0!e$te!( C4 L4 "nd 94 M"y!hofe! .ed4/ .1231/4 Handboo( of esearch on )om#arative Human esource Management(
Cheltenh"): Ed$"!d El#"! P*,l%h%n# In'4
0!e$te!( C4 L4( 94 M"y!hofe! "nd4 M4 Mo!ley .ed4/ .122.7/: K22OK1B4
0*dh$"!( P4S4 "nd P4R4 Sp"!!o$ .1221/4 IAn %nte#!"t%&e f!")e$o!6 fo! *nde!t"nd%n# '!oEn"t%on"l h*)"n !eo*!'e
)"n"#e)ent p!"'t%'e-( Human esource Management eview 31: >;;O4
C"ppell%( P4 "nd D4 Ne*)"!6 .1223/4 IDo IH%#hEPe!fo!)"n'e- 9o!6 P!"'t%'e I)p!o&e Et",l%h)entELe&el O*t'o)eN-(
Industrial and ,abor elations eview 7/4 IF%t( E8*%f%n"l%ty( "nd O!#"n%5"t%on"l Effe't%&ene: A Tet of T$o
Conf%#*!"t%on"l Theo!%e-( Academy of Management Journal >B.B/: 33ABO31724
D!*6e!( L4 "nd G4 9h%te .3AA7/4 I0*%ld%n# "nothe! 9o!6%n# St!*'t*!e-( "eo#le Management 3.K/: 11E1;4
Ed$"!d( R4 C4 .3A;A/4 )ontested Terrain* the Transformation of the -or(#lace in the Twentieth )entury( London:
He%ne)"nn4
El&%!"( M4 M4 "nd A4 D"&%l" .1227/4 IE)e!#ent D%!e't%on fo! H*)"n Reo*!'e M"n"#e)ent Ree"!'h %n L"t%n A)e!%'"-(
International Journal of Human esource Management 3B.31/: 11B7E11K14
F"!nd"le( E4 "nd L4 P""*$e .122B/4 I0et P!"'t%'e &e!* 0et F%t HRM: 9%th%n "nd A'!o MNC Co)p"!%on-( 9o!6%n#
P"pe! %n H*)"n Reo*!'e M"n"#e)ent 3;4
Fo),!*n( C4 L4( N4 M4( T%'hy "nd M4 A4 De&"nn" .3AK2E>3( L%,on( Po!t*#"l4
Ge!h"!t( 04 .122;"/4 IHo!%5ont"l "nd ?e!t%'"l F%t %n H*)"n Reo*!'e Syte)-4 In C4 Ot!off "nd T4 L*d#e .ed4/4
"ers#ectives on 3rgani4ational 5it4 Ne$ Yo!6: L"$!en'e E!l,"*) Ao'%"te P*,l%he!4
Ge!h"!t( 04 .122;,/4 IModel%n# HRM "nd Pe!fo!)"n'e L%n6"#e-4 In P4 0o+"ll( L4 P*!'ell( "nd P4 9!%#ht .ed4/( The
36ford Handboo( of Human esource Management4 O+fo!d: O+fo!d Un%&4 P!e4
Ge!h"!t( 04 .1227/4 IH*)"n Reo*!'e "nd 0*%ne Pe!fo!)"n'e: F%nd%n#( Un"n$e!ed R*et%on ( "nd "n Alte!n"t%&e
App!o"'h-( Management evue 3B .1/: 3;A.B/: 3BA1E3;314
G%ll( C4 .122A/4 IUn%on I)p"'t on the Effe't%&e Adopt%on of H%#h Pe!fo!)"n'e 9o!6 P!"'t%'e-( Human esource
Management eview 3A.3/: >AE724
God"!d( L4 .122A/4 IInt%t*t%on"l En&%!on)ent( 9o!6 "nd H*)"n Reo*!'e P!"'t%'e( "nd Un%on: C"n"d" &e!* En#l"nd-(
Industrial 7 ,abor elations eview B1.1/: 3;>E3AA4
God"!d( L4 .122>7E>7/4 IP!J't%'" de Get%Dn de Re'*!o
H*)"no en U!*#*"y: *n AnJl%% C*"nt%t"t%&o-( elaciones ,aborales 3: 3>E>Q
Re'!*%t)ent: Inte!n"l to the f%!) 34< >43Q Re'!*%t)ent: 9o!d of )o*th
%nfo!)"t%on
34K 14AQ Co))*n4 flo$: Othe! $o!6e! 342 14 741Q E&"l*"t%on A4< 134B
Q A't*"l 6%ll 24
F*t*!eEo!%ented 2471 Go"l: p!o)ot%on 24KA
P!o&en e+pe!%en'e 24