Human Resource Practices and Firm Performance in China: The Moderating Roles of Regional Human Capital Quality and Firm Innovation Strategy

2015 ◽  
Vol 11 (2) ◽  
pp. 237-261 ◽  
Author(s):  
Xiaobei Li ◽  
Xin Qin ◽  
Kaifeng Jiang ◽  
Sanbao Zhang ◽  
Fei-Yi Gao
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Human Resource ◽  
Business Strategy ◽  
Innovation Strategy ◽  
Performance Study ◽  
Firm Level ◽  
Capital Theory ◽  
Hr Practices ◽  
Capital Development

ABSTRACTWe conducted two studies to investigate the contingent role of regional human capital quality (i.e., the knowledge, skills, and abilities of the collective workforce in a region) in the relationship between firm-level human resource (HR) practices (i.e., practices focusing on employees’ human capital development) and firm performance in China. Drawing upon human capital theory, we hypothesized that the human capital–enhancing HR practices and regional human capital quality have a substitutive effect on firm performance. Study 1 uses a World Bank survey of 9,125 firms in 30 provinces. We found that the human capital–enhancing HR practices relate more strongly to firm performance when regional human capital quality was lower than when it was higher. Study 2 used a sample of 203 firms across seven provinces. We found similar results. We further hypothesized and found that the substitutive effect of regional human capital quality was stronger when a firm adopted an innovation strategy. Our findings provide new evidence for the contingency perspective of strategic HR management and highlight the importance of matching HR practices with local labor quality conditions and the business strategy of the firm.

scholarly journals Board Capital Effect on Firm Performance: Evidence from Indonesia

2021 ◽  
Vol 21 (1) ◽  
pp. 491-506
Author(s):  
Maria Kontesa ◽  
Andreas Lako ◽  
Wendy
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Financial Distress ◽  
Board Members ◽  
Firm Level ◽  
Capital Theory ◽  
Strategic Resources ◽  
Board Capital ◽  
And Performance ◽  
High Level

Human capital effects have been ignored as important resources to induce the organization’s performance in firm-level research. The proponents of human capital theory and resource-based view theory argue that the human resources attached to each board member, such as networking, education, and experience, might induce the performance. Yet, agency theory argues those strategic resources might bring higher transaction costs and entrenchment costs. Therefore, this study aims to examine the board's capital effect on firm performance for a sample of 252 listed firms in Indonesia over 2011–2017. Using dynamic GMM panel regression, we confirm the hypothesis about board capital and performance. The results imply that board members’ networking and experience are two important factors for firm performance. However, boar members’ education does not give any impact. It confirms prior theories whereby the capability and competency of directors are an important source for the firm to achieve its objective. Networking and experience might help the firm to avoid financial distress. It furthers implies that shareholders should choose board members with a high level of networking and experience, not education.

VALUE-SEMANTIC ECONOMY

ASJ. ◽  
2020 ◽  
Vol 1 (40) ◽  
pp. 53-57
Author(s):  
A.V. Kurbatov A.V., ◽  
L.A. Kurbatova
Keyword(s):  
Human Capital ◽  
High Efficiency ◽  
Human Capital Development ◽  
Capital Theory ◽  
The Sustainable Development ◽  
External Resources ◽  
Internal Resources ◽  
Value Determination ◽  
High Dynamics ◽  
Capital Development

The continuing build-up in the speed of deepening of the global economic crisis, driven by just as fast drop in quantity of the external resources calculated per inhabitant of our planet, forces us to refer to internal resources in order to prevent the irreversible losses, to overcome the crisis and ensure the sustainable development. Beginning from the second half of the 20-th century, the hopes for efficient deployment of internal resources have been laid on the development of the human-capital theory. However, despite the intensive change in perception of the very concept of "human capital" and a wide scope of innovative models of its practical application, aimed at bringing the economy out of stagnation, the desired outcome is not achieved. The trend of transferring of the bulk of investments to human capital, at the expense of the share of investments spent on increased production, has proved insufficient. The analysis of causes of ultra-high risks of investments in increase of human capital has helped to determine that the models, which are used currently, do not take into account some of the fundamental patterns, which ensure the high efficiency of investment in human capital. Most of the models are based on application of the methods of situational governance, which, at best, have a short-term positive effect. This trend results from the insufficient awareness of managers of the fundamental patterns of human capital development, which deprives the investors of the possibility to benefit from the optimal combination of the situational governance with relevant long-term programs, which can steadily increase human capital. The researches of the fundamental patterns of human capital development have shown, that the main factor for achieving the high efficiency of investment in human capital is the correct organization of the processes of value determination of the subjects of economic activity and the transition from the value determination to value-semantic determination, thus ensuring guaranteed attainment of goals along with high dynamics of resources. The work presented here is dedicated to the method of managing the quality of human capital, which is hereafter referred to as value-semantic economy.

Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises

2000 ◽  
Vol 25 (1) ◽  
pp. 43-58 ◽  
Author(s):  
Gaylen N. Chandler ◽  
Glenn M. Mcevoy
Keyword(s):  
Resource Management ◽  
Firm Performance ◽  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Best Practice ◽  
Medium Size ◽  
Current Debate ◽  
Total Quality ◽  
The Relationship

This study analyzes the moderating effect of two key human resource practices on the relationship between organizational strategy and firm performance. In a sample of 66 small to medium-sized manufacturing firms we found that a total quality management strategy was most effective when supported by significant training and group-based incentive compensation. This result is discussed in light of the current debate in the field about “best practice” versus “fit” models of human resource management and business strategy.

Human resource practices, employee competencies and firm performance: a 2-1-2 multilevel mediational analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sukhpreet Kaur ◽  
Gurvinder Kaur
Keyword(s):  
Firm Performance ◽  
Human Resource ◽  
Large Scale ◽  
Human Resource Practices ◽  
Related Factors ◽  
Firm Level ◽  
Content Type ◽  
Mediational Analysis ◽  
Academic Qualification ◽  
Employee Competencies

PurposeThis study aims to understand the role of employee competencies in terms of the relationship between Human Resource Practices (HRPs) and firm performance.Design/methodology/approachA sample of 60 HR managers and 546 employees from large-scale food processing firms were considered for the study. The study presents a 2-1-2 multilevel mediational analysis in which HRPs and firm performance are measured at the firm level (Level-2) and employee competencies are measured at employee level (Level-1).FindingsPositive relationship was found between HRPs and firm performance, which was partially mediated by employee competencies.Practical implicationsThe study highlights the importance of employee-related factors by focusing on the wider dimensions of human capital (e.g. academic qualification, job experience) in HRPs–performance relationship.Originality/valueThe study undertakes a 2-1-2 multilevel mediational analysis, which is rarely applied in HRM studies; however, this interaction between macro- and microlevel effects will create a better understanding of organization studies from an integrated and multilevel context.

Strategic human resource management and employees' intention to leave: testing the moderated mediation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subhash C. Kundu ◽  
Archana Mor ◽  
Neha Gahlawat
Keyword(s):  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Intention To Leave ◽  
Strategic Human Resource Management ◽  
Business Strategies ◽  
Innovation Strategy ◽  
Quality Enhancement ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this study is to examine the relationship between business strategies (i.e. cost reduction, quality enhancement and innovation strategy) and employees' intention to leave (ITL), through the mediating role of high-performance work system (HPWS). It also attempts to study variability in the relationship between business strategies, HPWS and employees' ITL on the basis of nature and ownership forms of the firms.Design/methodology/approachPrimary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.FindingsThis study has revealed that HPWS mediates the relationship between business strategy (specifically innovation and quality-enhancement strategy) and employees' ITL. Findings further indicate that the mediated relationships between quality enhancement and innovation strategy, HPWS and ITL do not vary across nature and ownership forms of the firms.Practical implicationsIn context of dynamic business environments in developing countries, the findings provide some important insights in exploring the relevance of strategic human resource management in improving employees' behavioural intentions.Originality/valueBy applying a three dimensional business strategy system (innovation, quality and cost) and by exploring the relevance of several contextual factors, this study attempts to expand the focus of turnover research.

Entrepreneurial actions: implications for firm performance

2019 ◽  
Vol 26 (5) ◽  
pp. 706-725
Author(s):  
Curtis Sproul ◽  
Kevin Cox ◽  
Amanda Ross
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Fixed Effects ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Competitive Dynamics ◽  
Human Capital Development ◽  
Content Type ◽  
Entrepreneurial Action ◽  
Capital Development

Purpose The purpose of this paper is to investigate different types of investment actions undertaken by entrepreneurial firms to determine how these actions influence performance. Specifically, the effects of entrepreneurial action with regards to investments in human capital, the capabilities of the firm and the competitive dynamics of the business relative to other firms are examined. These actions are examined in conjunction with the offering of products, services or both, to determine the benefits of specific actions for firms. Design/methodology/approach The sample is taken from the confidential version of the Kauffman Firm Survey (KFS). The data are analyzed using a fixed effects model. Findings Results show that investment in human capital development actions and capability development actions improve firm performance. Further, investment in human capital development actions is shown to have the largest positive impact on the performance of firms that offer products only. Competitive positions actions have the greatest positive impact on firms that offer products and services. Research limitations/implications Results contribute to multiple theoretical lenses within the context of entrepreneurship and demonstrate applicability of theory related to entrepreneurial action to other established theories. Findings also demonstrate that different entrepreneurial actions benefit firms that offer products or services in different ways. Limitations of the study are those associated with survey research generally, such as self-reported measures, non-response bias and the KFS specifically such as survivorship bias and variance in survey items across years. Originality/value The consideration of firms whose primary focus is the selling of products compared to services and how they moderate specific actions is novel and valuable. Theoretical development tying human capital, competitive dynamics and dynamic capabilities to entrepreneurial action creates new avenues for inquiry.

Human Capital Creation: Innovative Practices by an Indian Bank

2014 ◽  
Vol 3 (2) ◽  
pp. 195-205
Author(s):  
Alok Kumar Goel ◽  
Geeta Rana
Keyword(s):  
Human Capital ◽  
Human Resource ◽  
Employee Retention ◽  
Industrial Relations ◽  
Working Environment ◽  
Organizational Behaviour ◽  
Hr Practices ◽  
Hr Management ◽  
Management Students ◽  
Conducive Environment

Employee retention was a big challenge at YES Bank, an emerging Indian bank. The main objective of the study is to identify innovative steps taken by the management in their human resource (HR) practices to enhance employee retention and to create a conducive environment for human capital creation in the YES Bank. The case explores and provides useful insights as to how YES Bank has successfully transformed its working environment for human capital creation through innovative HR practices. The case concludes with questions to provoke discussion to understand the importance of various HR management initiatives. This case is recommended for study and analytical discussion for practicing managers, researchers and management students in HR management, organizational behaviour and industrial relations.

Corporate governance, human capital resources, and firm performance: Exploring the missing links

2020 ◽  
Vol 45 (4) ◽  
pp. 192-205 ◽  
Author(s):  
Kaouthar Lajili ◽  
Lauren Yu-Hsin Lin ◽  
Anoosheh Rostamkalaei
Keyword(s):  
Corporate Governance ◽  
Human Capital ◽  
Resource Management ◽  
Firm Performance ◽  
Human Resource Management ◽  
Human Resource ◽  
Strategic Human Resource Management ◽  
International Governance ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

This study explores the associations between human capital resources, firm performance, and corporate governance mechanisms. Based on the survey results of the “50 most attractive employers” conducted by Universum Global 2010, human resource, performance, and governance data was collected for the period from 2007 to 2011. Drawing on the strategic human capital and resource management, international governance, and organizational literature, this study examines the extent to which corporate governance mechanisms moderate the relationships between firm performance and human capital resources and posits that human resource performance is positively associated with corporate governance mechanisms that support and enhance strategic human resource management policies. Panel regression analyses are conducted to test the study’s hypotheses. The results show that human capital resources are positively related to firm performance, and that some corporate governance mechanisms may negatively affect performance when interacted with human capital variables. Furthermore, human resource performance is significantly related to some governance mechanisms, with interaction effects between human capital and other organizational attributes showing differential impacts. Overall, the results support a contingency-based view of strategic human resource management in the context of large and attractive global employers and highlight the importance of governance design in supporting investments and deploying human resources and capabilities at the firm and industry levels and across national boundaries.

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