The Diffusion of HR Practices in Chinese Workplaces and Organizational Outcomes
Peter G. Gahan
University of Melbourne - Department of Management and Marketing
affiliation not provided to SSRN
February 11, 2010
Industrial and Labor Relations Review, Forthcoming
How relevant are high performance work systems (HPWS) in economies undergoing significant economic transition from a command to market economy? Using data drawn from a large sample of Chinese establishments, this study investigates the relationship between the adoption of HR practices, innovation and organizational outcomes. The authors find significant relationships between labor management practices associated with HPWS and establishment productivity. However, the introduction of these practices was also associated with significantly higher labor costs. The strength of the HRM practice-performance relationship is also significantly moderated by the extent to which the workplace has experienced innovation (technological, work organization or product). These findings add further to understanding the relationship between work practices and performance, and contribute to understanding the impacts of the changing economic context on labor management practices in China.
Keywords: High Performance Work Practices, Innovation, Performance
JEL Classification: D23, L23. M12, M54
Date posted: February 15, 2010 ; Last revised: July 25, 2012
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