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Research Linking HRM Systems with Firm Performance

Number

Study

Year

Level of Analysis

1

Ahmad & Schroeder

2003

2

Allen, Shore & Griffeth

2003

3
4
5

Applebaum, Bailey, Berg, & Kalleberg
Appleyard & Brown
Agarwala

2000
2001
2003

Manufacturing plants
employee (sales and
insurance agents)
Plant and individual;
40 plants; 4374 workers
Semiconductor firms
firm (Indian)

6
7
8

Bacon & Blyton
Bae & Lawler
Ballou, Godwin, & Shortridge

2001
2000
2001

Employees (Mfg firms)
Firm (Korean)
Firm (100 best to work for)

9

Banker, Field, Schroeder, & Sinha

1996

Establishment

10

Banker, Lee, Potter, & Srinivasan

1996

Firm (one retailer)

11
12

Barnard & Rodgers
Barrette & Ouellette

2000
2000

Firm (Singapore)

13
14
15

Bartel
Bartel, Freeman, Ichniowski, & Kleiner

16
17
18
19

Batt
Batt, Colvin & Keefe
Bayo-Moriones & Huerta-Arribas
Becker & Huselid

2002
2002
2002
1996

Service and Sales establishmen
Telecommunications firms
Manufacturing plants
Firm

20
21
22
23

Becker & Huselid
Becker & Huselid
Berg, Appelbaum, & Bailey
Berman, Wicks, Kotha & Jones

1998
1999
1996
1999

Firm
Find this
Firm (apparel)
Fortune 100 firms

62

Batt

2000 Bank branches
Find this
Find this
1999 1 firm (customer service reps)

Sample

HPWS Indicator

operational performance
107
HRM Practices
215 sales;
perceived organizational
197 insurance agents support (HR practices) voluntary turnover
Quality, productivity
labor costs; ee outcomes
45-3622
HRM Systems
productivity, defects
23 fabs
Employment System
Org commitment
7
HR Practices
attitude to change;
teaming
job satisfaction
401
138
HRM Strategy
Perceived performance
110
Quality of work life
Stock Price
Quality, productivity
labor costs; ee outcomes
328 periods
Team program
sales, profitability,
customer satisfaction
2618 store months Incentive pay
Internally oriented
Successful implementation
HR Practices
of HPWS
105
3 branches
(63-150 ee's)
Find this
202
270
302
719
check
548 - 699
Find this
117-131 ee's (2 firms)
81

HR practices; ee attitudesSales growth
Find this
Find this
TQM; self-managed team Sales
HR Practices
Sales growth; turnover
HR practices (emp voice) Quit rate
HR Practices
Incentives
HRM Systems
Profitability, stock value
HRM systems
Find this
HR Policies
Stakeholder Relations

Profitability, stock value
Find this
Work team quality
ROA

HRM Systems

Subjective assessment
foreign parent's satisfaction
w/performance

24

Bjorkman & Xiucheng

2002

Firm (manufacturing)
Chinese/Western joint
ventures & subsidiaries

25
26

Black & Lynch
Black & Lynch

1997
2000

Establishment
Private establishments

1621
1621

find this
HPWS

27
28

Black & Lynch
Boslie, Paauwe & Jansen

2001
2001

Private establishments
Review

1621

HR Practices

29
30

Boxall & Steenveld
Brynjolfsson& Hitt

1999
1998

Professional service firms
Firm

6
380

31

Brynjolfsson, Hitt & Yang

Firm

1031

32

Brynjolfsson, Hitt, Yang, Baily & Hall

2002

Firm (large)

1216

33
34
35

Burton & O'Reilly
Cabrera& Cabrera
Caligiuri & Stroh

2000
2000
1995

High technology startups
Banks
Multinational firms

101
4
46

36

Cappelli & Neumark

1999

Establishment

8/14/2003

find

Performance
Measure

433; 201; 660

HR Strategy;
HRM practices
Org Design
Computer capital;
work practices
Computer investment;
work practices
HR practices;
leadership values
HR practices
HR Practices
Work practices

Effect
Main Effect? InteractionSize
Weak

NA

yes

Yes

Yes
Mixed
Yes

NA

NA
NA
Partial

NA
NA
na

No
Yes
Yes

NA
NA
NA

NA
NA
NA

Yes

Yes

NA

Yes

Weak SuppNA

Mixed

Yes
Find this
Mixed
Yes
Yes
Yes
Yes
Yes
Find this
Yes
Mixed

NA

na

16-26% increase
deposits & loans
NA
Find this
Find this
Weak
9.3% sales/ee
46% lower TO;
16.3% sales grth
Partial
NA
NA
NA
NA
check
find out
$63K mkt value;
$4752 GRATE
Yes
Find this Find this
NA
NA
Yes
NA

Yes

NA

Productivity
Productivity
Productivity (Cobb-Douglas
Production Function)

Yes
Yes

Mixed
Yes

NA
If all HPWS, +20%
productivity
NA

yes

NA

NA

Industry leadership
Information technology

N
Yes

NA
Yes

Stock price

Yes

Mixed

market/book

Yes

NA

NA
NA
+$1 installed computer
capital->+$5 mkt value
+$1 computer
investment=> $10 mv

Yes
NA
Mixed

Yes
NA
NA

NA
NA
NA

Weak

Yes

NA

IPO
HR strategy
Strategy
Efficiency (labor costs &
productivity)

$4K profits NA $38K . & Kochhar 2001 2001 Firms (UK) Law firms 70 71 72 73 74 Hoque Huang Huang Hunter & Hitt Hunter & Lafkas 1999 2000 2001 Unpub 2003 75 76 Huselid Huselid & Becker 1995 1995 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 8/14/2003 Study Year Level of Analysis members of IPA Hotels Firms (Taiwan) Firms (Taiwan) Retail banks and branches Bank branches Firm Firm Sample 54 164 164 137 .1148 perception of profit sharing Coyle-Shapiro. Calantone & Shosh 2000 Manufacturing firms 290 Quality Management Deery & Iverson 1999 Bank branches 460 banks. profitability yes Mixed Yes Yes find this Yes Yes Mixed Weak Support na na NA NA Mixed NA Yes NA find this find this Weak SuppNA Weak SuppNA NA NA NA Productivity find this Performance Performance (subjective) Productivity Quality find this Yes find this Weak Yes Weak Support Yes find this Mixed find this NA NA NA NA find this NA find this NA NA NA NA Mixed Yes Yes Yes Mixed NA NA Yes NA NA NA NA find this quality. Handfield. Trenberth. Magnan & St-Onge 2001 Bank SBU's 95 . market performance indiv. Smith. Moynihan. stock value profitability 816 HRM Systems 628 HRM systems Market value NA NA yes Yes Yes Yes Yes Weak Trng only Yes Yes na high HIWP= + $184K productivity Low HIWP= -$89K high HIWP= + $184K productivity Low HIWP= -$89K na NA NA Partial Yes na Yes Mixed NA weak NA NA Yes Yes Yes Yes Yes NA Mixed Mixed Yes Weak Yes Yes na NA NA NA NA ********** NA 7% TO. $27K sales Weak Supp$19K mv. profitability Yes NA 17% incr profitability Org performance Yes NA NA Yes Mixed NA Firm perf. sales 303 Work practices Wages Turnover. Spell & Nyamori 1999 2002 Firms (New Zealand) Firms (New Zealand) 66 Harel & Tzafrir 1999 Firm (Israel) 67 Harel. Bjorkman. & Wright 2002 Business Unit 40 (one firm) 219 orgs. Tzafir & Baruch 2003 Firm (Israel) 68 69 Harris & Ogbonna Hitt. org citizenship Gardner. job satisfaction. & Pavlovskaya 2000 Firms (Russia) 101 HRM practices Freeman. 70. & Shaw find this find this find this find this HR practices. quality. Subjective firm performance 315 HRM Practices Subjective firm performance 315 HRM Practices 35 branches (101 banksFlexibility. Batt & Katz 2001 establishment (telecom) 242 HR Practices Conyon & Read 1998 Firm 139 HRM Practices Profit sharing plans Cormier. Ichniowski. effectiveness Guest. productivity.$73K market valu . productivity performance org perf perception. quality Subjective org perf. knowledge creatiion Collins. Bierman. Jenkins. ee retention HIWP HIWP Retention. Kleiner. Michie. trust in management Firm performance ROA. & Stevens.Research Linking HRM Systems with Firm Performance Number 60 61 HPWS Indicator Hr Practices. & Ostroff 1997 Firm 260 Employee Involvement Fynes & Voss 2001 Manufacturing plants (Ireland) 200 Quality practices Gant. 209 High commitment practiceproductivity. orientation as mediator) 342 93 (252 observations) Human capital Effect Main Effect? InteractionSize Org effectiveness Subjective Performance (sales growth. employee attitudes HR practices Productivity. McDonald 2001 Firm (mfg & service) 237 Guest & Pecci 1997 Partnership Organizations 54 partnership practices 62 Guest & Pecci 2001 63 Guthrie 2001 Firms 64 65 Guthrie Guthrie. HR Practices HR practices and fairness in promotion 102 SHRM(mkt. perf. Conway.684 observations Gerhart & Milkovich 1990 BU's and firms Human capital Gould-Williams 2003 HR practices. productivity. sales growth productivity find this Perceived performance Profitability Quit rate Lead time.165 76 partnership practices Performance Measure Sales growth Manager Pay Productivity ROA Org commitment. Richardson & Dunn 2002 employee (Engineering) 141 D'Arcimoles 1997 Firms 61 HR Policies Das. commitment productivity. & Ganster 2000 Trucking Cos 379 HR Practices Dunlop & Weil 1996 Business Units 42 Modular production Work practices (TQM teams) Eriksson 2001 Firm (Denmark) 1605 Fernie & Metcalf 1995 find this find this find this Fey & Bjorkman 2000 Subsidiaries (in Russia) 101 HRM practices Fey. Shaw. Morrow. Gupta. 2001 High technology firms 78 Colvin. 1145 ees IR climate Delaney 1997 find this find this find this Delaney & Huselid 1996 Firm (34 industries) 590 HR practices Delery & Doty 1996 Firm (banks) 101 HR practices Delery. market share) Firm performance commitment. Shimizu.

Lawthorne. Droge & Vickery Katz. profitability(ROA. plant. Kochan & Gobeille Kelly Khatri Khatri Koch & McGrath Konrad & Mangel Koys Lahteenmaki. Shaw.) First tier suppliers Automotive plants Establishment (mfg plants) 99 100 Lepak. productivity. Lau & Williams Liouville & Bayad Lowe. & Vanhala Lam & White Laursen Laursen & Foss Lee & Chess Lee & Miller Lepak & Snell 1999 1999 1983 1996 1999 2000 1996 2000 2001 1998 1998 2001 2003 1996 1999 2002 Firms Business Unit 41 steel productions 36 steel production lines individual (customers of telecommunications co.. & Nickell Richard & Johnson 8/14/2003 In Press firm 2002 Firm. flexible work practices Org commitment Find this Find this 965 HRM practices 1054 HRM practices 80 Integrated manufacturing Employee attitudes (job sat. org commit. firm value Quality. productivity Quality. & Carroll Firm (Danish) Firm (Danish) Mfg firms (Korean) Firm (Korean manufacturing) firm Sample 148 249 . Takeouchi & Snell Lewin 101 102 103 104 105 106 107 108 Li Lieberman. & West 2003 2001 1996 Unpub 1998 find 120 121 122 Patterson & West Patterson. stock value Profitability. Storey. Growth Employee commitment Innovative activities: R&D. performance productiviey. Gupta. new technology Effect Main Effect? InteractionSize +1sd HPWS= +q14% & GRATE + 13-28% Yes NA Yes NA +1sd HPWS= $41000 sales $44K. productivity Productivity. ROVA. quality. Delbridge. teamwork 109 110 111 McNabb & Whiffield Mendelson Meyer & Smith 2001 2000 2000 Establishment ROVA individual 688-703 63 281 112 113 Michie & Sheehan Michie & Sheehan-Quinn 1998 2001 Firm 114 115 116 117 118 119 Michie & Sheehan Miller & Lee Montemayor Moriones & deCerio Morishima Patterson. Wall. performance Productivity. turnover Yes Yes Mixed NA . long-term employment policy Labor utilization find this HR Practices HRM policies Executive HRM practices Martell.457 487 HR practices Organizational IQ HRM practices HRM practices HRM Practices. time Performance Productivity. HR bundles Performance Productivity Productivity Profitability Subjective performance 726 1884 48 138 148 Innovation Innovation Performance Firm performance Financial performance HR configurations MNEs (China) 296 Motor vehicle manufacturers 6 find this find this Plant 71 Establishment (auto assembly) 57 Business Units 115 McNabb & Whiffield 2003 1990 1998 1997 1995 1995 1996 1997 Establishment 587 flexibility. West. Performance Quality and efficiency Hours per unit of output 194 318-319 658 (195 public) 28 428 HR Practices HRM Sophistication Work life programs EE attitudes & behaviors Hr policies. Jackson. A.Research Linking HRM Systems with Firm Performance Number Study Year Level of Analysis 77 78 Huselid & Becker Huselid & Becker 1996 1997 Firm Firm 79 80 81 82 Huselid. sales/ee) Productivity find this productivity Production Performance Financial Performance subjective financial performance ROS. & Oliver MacDuffie Martell & Carroll Firm (Singapore) Business unit Firm Restaurant chain Firm (Finland) 218 548 HPWS Indicator HRM Strategy HRM Systems 293 176 2594 monthly periods 2190 line periods HRM Effectiveness HRM Systems HRM Systems HRM Systems 2491 57 18 (176 observations) 301-1301 customer satisfaction HRM Practices IR systems Group participation Financial performance Subjective mfg. stock value Firm performance. & Schuler Ichniowski Ichniowski & Shaw Ichniowski.field office find 1997 2001 Manufacturing and service sector firms (UK) Firm (Korean) Find this Factory (Spanish) Firm (Japanese) Firm (manufacturing) Firm (manufacturing) Firm (manufacturing) banks Performance Measure Profitability. cash flow $9673 Mixed NA Yes NA NA Yes NA Na Yes Yes NA Mixed Yes Mixed Yes NA NA NA NA NA NA NA NA Yes Yes Weak NA Weak NA NA NA NA NA Yes Yes No Yes Yes NA NA No Yes na NA NA NA NA NA Yes Mixed NA NA NA NA NA find this NA Yes NA NA find this NA mixed NA yes Yes Mixed Yes NA NA na na NA Yes NA NA NA Yes Find this NA NA NA NA NA Find this NA NA NA Yes Yes mixed NA NA na Modest Yes Weak No Weak Mixed Yes find this Mixed Yes Mixed Yes Innovation activities Firm performance Find this Efficiency. & Prennushi 1997 1990 1999 1997 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 Ittner & Larcher Jayaram. 42 firms (3977 ee's) mental health) 67 HR practices 73 SHRM effectiveness 361 129 Firm performance Performance turnover. MV: $9K. BU. productivity HRM practices HRM Practices High involvement mgt Org commitment Employment modes Employment modes/ flexibility HIWP higher pay. K. performance Yes Weak Find this Mixed Yes Yes Productivity.

& Gupta 1997 1999 1998 Firm Mfg Establishments (UK) Firm (trucking) 1 118 141-148 128 Shaw. Pillinger. Godfrey & Marchington Wilmalasiri Wood 1997 1999 1999 1987 2002 1996 1999 2002 1999 find 1999 1997 2001 1997 1995 1999 153 154 155 156 157 158 Wright. financial perf Yes Yes NA Org effectiveness Yes mixed NA Yes Limited Weak mixed NA NA NA NA NA Yes NA NA NA NA NA Employee development Yes Org effectiveness Yes Fin & operational perf Yes Yes quality. & Sesil Shaw. HR practices Profit sharing plans HR practices HR "values" Senior HRM executives Firm Top management teams Firm (manufacturing) Review Credit unions establishment 1 publishing co. Firm (trucking) 141. Review >100 42 81 NA 180 (1689 ee's) 9 151 employees NA HRM practices Team processes training NA HR practices HR Practices HRM Practices NA 86 38 105 HR effectiveness HR practices HR practices Find this HR practices HRM practices Find this 97 74 (Chinese) Performance Measure Customer satisfaction Effect Main Effect? InteractionSize Yes Yes NA Operating Income Yes NA NA Operating Income ROS. ROA Turnover Yes Yes Yes NA NA Yes NA NA NA Productivity. Patterson. & Gerhart Yang Youndt & Snell Youndt. sales growth Developmental Activities 4 economic perfomances Org climate. Baker. trng. dev Commitment-oriented HR philosophy HR Practices NA HR practices. & Ulrich Voos Way Welbourne & Andrews Welbourne & Cyr West..K. Snell.Research Linking HRM Systems with Firm Performance Number 123 Study Rogg. Scully. & Sherman Wright. Carter. OCB Stress NA Mixed Yes NA No NA Yes NA Yes NA Find this Find this Weak SuppFind this Yes NA . McCormick. firm performance Yes NA NA Org commitment Yes TQM Non-empirical Work performance Yes NA NA Perceived HR effectiveness Financial performance Mixed Financial performance Mixed Sales/employee Mixed Find this Find this Perceived performance Mixed Firm performance Mixed NA NA NA NA Yes Find This NA NA NA NA NA NA NA Find this NA NA ROA. C. Dean & Lepak Zheng 1998 1999 1998 1999 1996 2001 Petrochemical factories Petrochemical factories Firms Find this Establishment (mfg plants) Firm (small and medium) 8/14/2003 find Level of Analysis Small business firms 2 (pilot studies) 106 102 139 314 HPWS Indicator HR practices Employee-centered mgt (HR Index) Employee-centered mgt (HR Index) ee involvement HRM practices Voluntary turnover. & Nickell Whiffield & Poole Whitener Wilkinson. 379 129 130 131 132 133 Sheppeck Sheppeck & Militello Snell & Youndt Spell. Gupta & Delery 2002 Plant.S. HRM Investment HRM practices. Snell. McMahan. McMahan. Hagan. productivity. Borrill. labor cost turnover. Dunning. HRM strategy HR practices culture. Dawson. Patterson & Dawson West. Jr. West & Patterson West. productivity Mixed Profitability. Storey 1998 2000 1995 2001 2002 Firm Theory piece Firm Employees Middle sized companies 134 135 136 Takeuchi Teo & Waters Tier 2002 2002 find Employees White collar employees Review 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 Tregaskis Vandenberg. Jenkins. 49 (3579 ee's) 39 343 446 82 360 HRM control systems HRM Strategies Education. mgt support for HRM Firm Firm Firm Bargaining units Firm (small business) IPO Firms IPO Firms 269 109 NA 531 French. Morden. Beatty. IPO price Weak Support Stock price growth No Yes NA NA NA NA NA Mixed NA NA NA NA NA NA NA Productivity. Schneier. performance Yes Innovation. 879 U. Anelay. performance Yes Productivity. RIchardson & Eastman Varma. et al Year 2001 Canadian and Chinese firm Sample 351 124 Schuster 125 126 127 Schuster. Delery.