HRM systems and firm performance: The mediation role of strategic orientation

Strategic Attributes and Organizational Performance: Toward an Understanding of the Mechanism Applied to the Banking Sector

The study examines and theorizes the importance of strategic attribute constructs (strategic orientation, organizational culture, and organizational internal market orientation) as applied to Pakistan's banking sector by identifying their roles in enhancing organizational performance and the mediating effect of organizational commitment. The current study adopted quantitative research designs and methods to determine structural relationships between the proposed constructs. A total of 10 hypotheses were tested underpinned by the Resource-Based View of the Firm and Social Exchange theories. The strategic attributes studied were significantly and positively related to, and enhance, organizational performance if the banks: (1) focus on strategic positioning, (2) fostering a strong organizational culture, (3) strategize internal marketing practices, and (4) boost organizational commitment. The findings supported the mediating role of organizational commitment between strategic attributes and organizational performance. This study contributes to existing literature and supports prior research while filling in gaps in the literature concerning developing countries.

SME performance: does organizational learning capability really matter?

Purpose

The purpose of this paper is to establish if indeed human resource management (HRM) practices drive organizational learning capability and, in turn, fortify small and medium enterprises (SMEs) performance. The purpose of mediation analysis is to see if the influence of organizational learning capability is stronger than the direct influence of HRM practices on SME performance.

Design/methodology/approach

Data was collected from managerial-level employees of SMEs using questionnaire survey. This study used the Partial Least Squares approach to structural equation modeling to test the hypothesized relationship, as it involves the relationships among multiple variables.

Findings

Of the HRM practices, incentive and compensation and team working seem to be important for firm performance. As for organizational learning capability, only openness and experimentation and managerial commitment have a direct positive impact on firm performance. The results of the mediation analysis established organizational learning capability as a mediator, albeit partially.

Originality/value

Although prior research revealed a positive relationship between HRM practices and performance, this study illuminates the black box in-between, as few studies have established its importance in the relationship between HRM practices and firm performance. The findings provide more consensus on the ongoing debate on the linkages among HRM practices, SME performance and organizational learning capability.

Financial and Non-Financial Practices Driving Sustainable Firm Performance: Evidence from Banking Sector of Developing Countries

Since independence, state-owned enterprises in Pakistan have been struggling for performance enhancement. The goal of sustainable performance is still unachievable. Therefore, the paper evaluates sustainable corporate performance based on financial, social, and environmental performance areas. The organizational restructuring framework for sustainable performance enhancement is developed on software PLS-SEM. The financial and economic performance (FEP) was evaluated through financial reports and surveys; however, social and environmental performances (SEP) were quantified through survey questionnaires for seven performance areas with multiple sub factors, based on Weisbord’s six box model. The study time period in focus is 2011 to 2015. Data was collected from 517 employees of 19 public, private, and privatized banks of Pakistan. The results demonstrate that the total effect of FEP and SEP is much stronger (t-value = 7.619) than the individual direct impact of FEP (t-value = 5.189) on sustainable firm performance (SFP). This is a clear indication of the mediating role of SEP for SFP evaluation. Furthermore, FEP depends on significant indicators include net assets, total deposits, profit before tax, and earnings per share of total deposits with outer loadings, which are given as 0.995, 0.992, 0.978, and 0.954, respectively. Moreover, SEP depends on indicators, i.e., reward policies, redefining organizational purpose, coordination mechanism among employees, and supervisor relationships, with correlations of 0.864, 0.849, 0.805, and 0.761, respectively. The framework will assist in the enhancement of the performance of economically unviable public and loss-making privatized entities.

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

Purpose

The 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/approach

Primary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.

Findings

This 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 implications

In 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/value

By 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.