The impact of best HRM practices on performance – identifying enabling factors
Abstract
Purpose
The purpose of this paper is to empirically examine the relationships between best human resource management (HRM) practices, knowledge management (KM), organization learning and organizational capabilities (OC), as well as their impact on organizational performance.
Design/methodology/approach
To carry out this research, a structured questionnaire was designed and distributed to 212 manufacturing firms which employ at least 50 employees. The final sample consists of 138 useable questionnaires.
Findings
Results indicate that manufacturing firms pursuing best HRM practices achieve higher performance through the interaction of these practices with KM and organizational learning capability and the creation of OC.
Research limitations/implications
Possible limitations of the study include the measurement of OC, the use of subjective performance indicators and the data collection approach reflecting mainly HRM managers’ perceptions.
Practical implications
HR practitioners and/or managers should focus on establishing the appropriate mechanisms for integrating “best HRM practices” with learning, knowledge and OC in order to improve performance.
Originality/value
This paper empirically tests a new composite model which elaborates upon the mechanisms that seem to intervene between the best HRM practices – performance relationship. Moreover, the value of the human factor in KM and organizational learning initiatives, as well as on OC, is explored. While this has already been underlined in the past, there is still no complete model simultaneously describing and testing all those relationships.
Keywords
Acknowledgements
This research project is co-financed by EU-European Fund (75 percent) and the Greek Ministry of Development-GSRT (25 percent).
Citation
N. Theriou, G. and Chatzoglou, P. (2014), "The impact of best HRM practices on performance – identifying enabling factors", Employee Relations, Vol. 36 No. 5, pp. 535-561. https://doi.org/10.1108/ER-02-2013-0025
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited