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Chinese Journal of Management Science ›› 2008, Vol. 16 ›› Issue (3): 181-192.

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The Effects of Business Strategy and HRM Strategy on Organizational Performance

LIU Shan-Shi1, IRENE Hau-sin2, Chow HUANG Jia-zhen3, LIU Xue1   

  1. 1. Department of Business Management, south china University of Technology, Guangzhou 00, China;
    2. Irene Hau-siu Chow, Department of Management, Chinese University of Hong Kong, Shatian, Hong Kong, China;
    3. Department of Business Administration, Sooehow University, Taiwan, China
  • Received:2007-01-17 Revised:2008-05-30 Online:2008-06-30 Published:2008-06-30

Abstract: The strategic HR literature suggests that a firm will perform better through internal appropriate fir among HRM practices(the configuration fit) and through external appropriate fit between a firm's busiHess strategy and HRM practices.The present study adopts a configuration approach to identifity unique patterns of HR practices and business strategy which are posited to be maximally effective.research findlngs show not only competitive strategies have signficant effect on HR configuration,but also significant interaction effects of HR configurations and business strategy on profit and sales growth are observed.The results from the present study offer some support to the pint of that integrating HR configuration with business strategy is conducive to the enhancement of organizational perormance.

Key words: human resource configuration, business strategy, firm performance

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