A Study of HR Flexibility and Firm Performance: A Perspective from IT Industry

The flexible HRM and firm performance nexus: can empowering leadership play any contingent role?

Purpose

The purpose of this empirical research was to investigate the individual effects of three dimensions of flexible human resource management (HRM) practices – skill flexibility, behavioral flexibility and human practice flexibility on firm performance and to what extent these relationships are strengthened/weakened when there was the moderation of empowering leadership in small- and medium-sized enterprises (SMEs) of the Kingdom of Bahrain.

Design/methodology/approach

The data were collected from chief executive officers (CEOs) through a questionnaire survey method to test the hypothesized relationships. A final dataset of 315 valid responses was utilized for data analysis, and results were analyzed using the Smart partial least squares structural equation modeling (PLS-SEM) technique.

Findings

The findings revealed positive effects of skill flexibility, behavioral flexibility and human practice flexibility on firm performance. The moderating role of empowering leadership further strengthened the effects of employee skill flexibility and employee behavioral flexibility had on firm performance. However, empowering leadership did not pose any moderating effect on human practice flexibility and firm performance relationship.

Research limitations/implications

This paper offers implications for theories on HRM and leadership. It also provides valuable insights for organizations and leaders seeking to boost firm performance across SMEs.

Practical implications

This paper offers implications for theories on HRM and leadership and also contributes in the understanding of the modern managers.

Originality/value

This paper investigated the effects of flexible HRM practices on firm performance and the role of empowering leadership across SMEs in Bahrain. It also explored how the performance of SMEs can be improved using flexible HRM practices followed by the presence of empowering leadership.

HR flexibility and firm performance in professional service firms

Human resource (HR) flexibility emerges as the most critical source of flexibility for professional services firms (PSFs), given that the success of these companies depends on the knowledge, expertise and behaviors of their employees. Nonetheless, few empirical studies have analyzed the extent to which the characteristics of the workforce explain the results of this type of firm. This study attempts to advance in this line of research by analyzing the influence of HR resource flexibility dimensions (skill flexibility – SF and behavior flexibility – BF) on PSF performance. It also examines whether HR coordination flexibility (CF) strengthens the effect of SF and BF on performance. Matched data from 97 general managers and 291 professionals in a sample of Spanish PSFs is used to test the hypotheses through structural equation modeling methodology. The study demonstrates that employee BF has a significant effect on the development of new services in PSFs. The moderation model shows that HR CF increases the influence of BF on the development of new services. Contrary to what was expected, no significant relationship between SF and PSF performance was found.

Knowledge management within a strategic alliances context: past, present and future

Purpose

This paper aims at reviewing the extant knowledge management (KM) research field within a strategic alliance context to understand the historical roots, its temporal progression, current state and potential future in a meaningful way.

Design/methodology/approach

Data for this study was retrieved from the Scopus database using a systematic literature search process. The bibliometric characteristics of 393 research documents were analyzed using bibliometric and structured network analysis.

Findings

The findings of the study suggest that the publication in the field have been growing with an average rate of 8.48%. This analysis also lists the most productive and impactful authors, main outlets, and the most impactful secondary and primary publication in the field. In addition, the conceptual and intellectual structure of the research field was constructed and discussed.

Originality/value

This paper uses an objective and quantitative approach by reviewing the related publications and virtually included all the relevant publications in the analysis, which was seen to be uneconomical when doing traditional literature reviews.

An exploration of key human resource practitioner competencies in a digitally transformed organisation

Orientation: Digital transformation lies at the heart of what has been termed the Fourth Industrial Revolution, and many researchers consider this as one of the most significant drivers of change in the area of human resource management. For this reason, organisations and human resource practitioners (HRPs) are encouraged to re-evaluate their roles to ensure that they are able to impact the business performance.Research purpose: This study reflects upon the potentially unique competency requirements of the HRP in a digitally transformed organisation by exploring the perceptions of the line partner.Motivation for the study: Digitalisation is transforming the roles of HRPs. Consequently, HRPs may need a different set of competencies. Despite the transformation and the associated change in competency requirements, little knowledge exists regarding the HRP competencies needed (especially in digitally transformed organisations).Research approach/design and method: The researcher identified 43 senior line partners through a purposive sampling procedure to participate in semi-structured interviews. Nineteen participants completed the interview process. The researcher analysed the interview data using thematic analysis.Main findings: The main themes are the ability to design, extract, understand, analyse, interpret and apply information (data); continuous learning; stakeholder relationship management; and cultivating positive organisational practices.Practical/managerial implications: The exploration of competencies provides organisations with additional context in terms of the complexity of the environment for the HRP, and provides a model that can be utilised for talent management.Contribution/value-add: This study contributes to the limited knowledge regarding HR competencies in digitally transformed organisations, especially from the perspective of line partners.

Causal modelling of HR flexibility and firm performance in Indian IT industries

Purpose

This paper aims to measure the human resource (HR) flexibility and firm performances confirmatory model and to map the causal relation structures in the HR flexibility and firm performance dimensions using the DEMATEL method.

Design/methodology/approach

Data were collected from leading national and multinational information technology (IT) firms operating in the southern part of India. Confirmatory factor analysis was used to measure the confirmatory model, and the DEMATEL method was used to map the causal relation among the dimensions of HR flexibility and firm performance.

Findings

HR flexibility could exist across IT firms. Organisations are required to anticipate and respond promptly to changing conditions in such a way that both technical and stakeholders’ complexity are effectively managed.

Research limitations/implications

The study was conducted at leading national and multinational IT firms operating in the southern part of India.

Practical implications

HR flexibility allows employees with a wide variety of work styles and lifestyles to be successful contributors, to advance and to lead in the parent firm. It brings out diversity and individuality, shared responsibility, wholeness, etc., among the employees. It applies to work schedules and career paths across the organisation. IT firms are advised to adopt an external focus, an organic and employee-oriented approach and long-term orientation.

Originality/value

Confirming the measurement model and mapping the causal relationship among the dimensions of HR flexibility and firm performance would be the novel contributions to the research in the areas of HR flexibility and firm performance with regard to IT firms. This paper contributes to the literature by theoretically and empirically investigating such relationships, thereby addressing the research gaps reviewed from literature.

Study of Intellectual Capital Dimensions in IT Industry Using DEMATEL Method

The purpose of this paper is to analyse the causal relation structure among the dimensions of Intellectual Capital (IC) by using the DEMATEL method. In this study, the dimensions of IC comprise human, structural, and relational capital. This study empirically analyses the causal relation structure with a sample of 18 (12 national and 6 multi-national) Information Technology (IT) firms operating in India. The respondents were the experts from IT firms encompassing chief executive officers, general managers, Human Resource (HR) managers, senior managers, and the IT consultants. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is used for the statistical treatment of the data. On the human, structural, and relational capital fronts, findings of the study suggest that “motivation of the personnel”, “operation process”, “brand value”, respectively, have the maximum causing properties. The study is limited to IT industry of India only. The dimensions of IC will differently trigger the attitude and behaviours of employees relevant for the parent organisation that helps the management to deal with different dynamic circumstances resulting in different outcomes. Study empirically assessed that there are synergy and causal relation structure between the dimensions. Present study contributes to retention and engagement of human capital and prefers potentially important policy implications. Examining the interrelationship among the dimensions of IC in the context of Indian IT is the novel contribution of the present study. Theoretically and empirically assessing the causal interrelationship and addressing the research gaps summarised from the literature will contribute to the IC research.