| The basic argument underlying the study of strategic human resource management (SHRM) is that a firm can employ a set of HRM practices that are internally consistent and externally aligned with firm strategy, to facilitate the achievement of the organizational goals. However, this claim was not substantiated with enough studies, especially antecedent and moderating factors that may influence this relationship. In addition, most current studies draw on firms from the developed, market economy, with little studies among emerging economies. The purpose of this study is to explore the determinants of SHRM and investigate factors influencing the relationship between SHRM and firm performance, in the context of China.; Based on the theoretical perspectives of both resource-based view (RBV) and institutional theory, together with a set of factors unique to the Chinese context, market orientation, HRM competency, HRM importance and CEO demographics were suggested as the determinants of SHRM employment in Chinese firms. Moreover, the moderating effects of alignment of line and HR function, autonomy in hiring and firing, ownership types and firm size on the relationship between SHRM and firm performance were also examined in this study.; The model was tested through a survey of 600 Chinese firms. The results indicated that the more market oriented the firm is, the higher the HRM competency, and higher importance perceived on HRM by the top management, the more likely that the firm will employ SHRM. Besides, if the firm's CEO is younger, more educated and with a longer tenure in the current position, it is more likely that the firm will employ SHRM.; The results also indicated that the positive influence of SHRM on firm performance was moderated by a firm's autonomy and the size of the firm. Chinese firms with higher autonomy in hiring and firing employees are able to achieve a better financial performance when employing SHRM. This effect is true for the state-owned enterprises and foreign invested firms, but not found in the private firms. Firm size was found to influence the implementation of SHRM in Chinese firms, with larger private firms being able to gain more from the SHRM employment.; This study contributes to the body of knowledge of SHRM by examining the determinants of the employment of SHRM and generalizing the conclusions on effects of SHRM on firm performance drawn from the West to the context of China, as well as further examining several moderating roles on this relationship by contextualizing some universal variables and testing of some context specific factors. |
