Flexing to outperform: workforce differentiation, HR flexibility and firm performance

Paula Apascaritei, Marta M. Elvira and María Rodríguez-García

International Journal of Manpower, 2024, vol. 45, issue 8, 1540-1554

Abstract: Purpose - Resource orchestration theory proposes that firms need resources, capabilities, and horizontal and vertical alignment to achieve high performance. Thus, we investigate which combinations of horizontal fit of resources (commitment-based HR systems for managers and nonmanagers) and capabilities (HR flexibility) together with vertical fit with business strategy (innovation versus cost leadership strategies) relate to superior performance. Design/methodology/approach - Our study is based on a sample of 113 Spanish firms from which we collected data on commitment-based HR systems for managers and nonmanagers, HR flexibility, business strategy and performance. We employ a fuzzy set qualitative comparative analysis (fsQCA) to analyze which configurations lead to firm performance. Findings - The empirical analysis shows that both HR practices and policies (commitment-based HR systems) and HR capabilities (HR flexibility) need to be aligned for high performance. The path for performance is comprised of a combination of commitment-based HR systems for staff and HR flexibility and by the absence of an innovation strategy or commitment-based HR systems for managers, HR flexibility, and a cost leadership strategy. We also find four paths where performance relies on efficiently combining an innovation and cost leadership business strategy. Originality/value - Our findings make three key contributions to the literature. First, we help elucidate multicausal relationships inside the black box of the “HR–performance” relationship for firm performance. Second, we study the vertical fit with business strategy by considering innovation and cost leadership strategies. Third, we analyze multicausal pathways, thus uncovering different combinations of resources and capabilities for performance.

Keywords: HR differentiation; HR flexibility; Business strategy; fsQCA (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:ijmpps:ijm-02-2024-0146

DOI: 10.1108/IJM-02-2024-0146

Access Statistics for this article

International Journal of Manpower is currently edited by Professor Adrian Ziderman

More articles in International Journal of Manpower from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().