Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector

Anastasia A. Katou and Pawan S. Budhwar

European Management Journal, 2010, vol. 28, issue 1, 25-39

Abstract: Summary Blending insights from the contingency theory, the resource-based view, and the AMO theory, the purpose of this paper is to investigate the HRM-performance causal relationship in the Greek context. The empirical research is based on a sample of 178 organisations operating in the Greek manufacturing sector. Using structural equation modelling the results of the study revealed that the ability to perform (resourcing and development), motivation to perform (compensation and incentives), and opportunity to perform (involvement and job design) HRM policy domains are moderated by business strategies (cost, quality, innovation), and additionally, the motivation to perform is further moderated by managerial style and organisational culture. Further, the results indicate that the impact of HRM policies on organisational performance is fully mediated by employee skills, attitudes, and behaviour. The paper concludes that although the motivation to perform HRM policy domain causes organisational performance, through employee attitudes, it may be supported that organisational performance positively moderates the effectiveness of this HRM policy domain, raising thus the question of reverse causality.

Keywords: HRM; policies; HRM; outcomes; Organisational; performance; AMO; theory; Causal; relationship (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0263237309000565
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:28:y:2010:i:1:p:25-39

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic
http://www.elsevier. ... me/115/bibliographic

Access Statistics for this article

European Management Journal is currently edited by Michael Haenlein

More articles in European Management Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().