Moderating Effects of Management Philosophy on High-Performance Work Practices-Firm Performance Relationship

Research evidence has signified that relationship between human resource practices and performance is contingent on the effect of a contingent variable. Nevertheless, survey of the extant literature signifies paucity of research on moderating effect of management philosophy. Thus, this study examine...

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Published in:Journal of African business Vol. 22; no. 3; pp. 379 - 393
Main Authors: Iyanda Ismail, Abdussalaam, Awawdeh, Alaeldin, Al-Hiyari, Ahmad, Isiaka Jimba, Kareem
Format: Journal Article
Language:English
Published: Binghamton Routledge 03.07.2021
Taylor & Francis Ltd
Subjects:
Appraisal
Attitudes
Bootstrap method
Bootstrapping
Comparative advantage
Competition
Competitive advantage
contingency theory
Employees
high-performance work practices
Hiring
Human capital
Human resource management
Management
management philosophy
Organizational effectiveness
Organizational performance
Performance appraisal
Performance related pay
Philosophy
resource-based view
strategic human resource management
Succession
Succession planning
Training
Nigeria
ISSN:1522-8916, 1522-9076
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Summary:Research evidence has signified that relationship between human resource practices and performance is contingent on the effect of a contingent variable. Nevertheless, survey of the extant literature signifies paucity of research on moderating effect of management philosophy. Thus, this study examined the moderating effect of management philosophy on the relationship between high-performance work practices (i.e. selective hiring, training & development, performance appraisal, pay-for-performance, and succession planning) and firm performance. The study employed cross-sectional research approach in which data were collected from a sample of 372 managers in Nigerian firms. Partial Least Squares Method (PLS) algorithm and bootstrapping techniques were used to test the study's hypotheses. The overall findings confirm that selective hiring, training and development, performance appraisal and succession planning have significant positive influence on firm performance while pay-for performance has non-significant effect on firm performance. The findings also indicate that the positive effect of HR practices on organizational performance cannot be strengthened, if management philosophy of a firm is not consistent with the values, attitudes and beliefs of the employees. The findings have profound implications for both theory and practice. The findings support resource-based view (RBV) by implying that firm's human capital can serve as a basis of competitive advantage, given that employees are of strategic importance to the success of organization. HPWPs can be used as tools in managing human capital effectively. Nonetheless, the vague process (i.e. black box) in the HPWPs-Performance nexus should be examined by the future studies.
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ISSN:1522-8916
1522-9076
DOI:10.1080/15228916.2020.1785235