Abstract: In this paper,we study the relationship between HR involvement,commitment-based HR system and firm performance of Korean firms in China. To test the hypotheses,we collect data from Korean firms with at least 50 employees,operating in Yantai,Weihai and Qingdao in Shandong Province of China. Questionnaires were sent to 200 firms,and 139 firms replied the survey. After dropping questionnaires that contain unanswered items,the final sample for this study used is 130,using hierarchical regression to analyze the data. Research result reveals as below.HR involvement,differentiation strategy with commitment-based HR system,and the commitment-based HR system with firm performance have positive relationship with the performance of firms. Based on the above results research implication is discused,and future research direction is described.

Key words: HR involvement, commitment-based HR system, competitive strategy, firm performance, Korean firms operating in China