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The Diffusion of HR Practices in Chinese Workplaces and Organizational Outcomes

Industrial and Labor Relations Review, Forthcoming

Posted: 15 Feb 2010 Last revised: 25 Jul 2012

Peter G. Gahan

University of Melbourne - Department of Management and Marketing

Marco Michelotti

Monash University

Guy Standing

affiliation not provided to SSRN

Date Written: February 11, 2010

Abstract

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

Suggested Citation

Gahan, Peter G. and Michelotti, Marco and Standing, Guy, The Diffusion of HR Practices in Chinese Workplaces and Organizational Outcomes (February 11, 2010). Industrial and Labor Relations Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1551529

Peter G. Gahan (Contact Author)

University of Melbourne - Department of Management and Marketing ( email )

5th Floor Babel Building
Melbourne, Victoria 3010
Australia
+61390359740 (Phone)
+61393494293 (Fax)

HOME PAGE: http://www.managementmarketing.unimelb.edu.au/who/staff.cfm?StaffId=241

Marco Michelotti

Monash University ( email )

Wellington Road
Victoria, Roodepoort 3145
Australia

Guy Standing

affiliation not provided to SSRN ( email )

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