The Goldilocks Effect of Strategic Human Resource Management? Optimizing the Benefits of a High Performance Work System Through the Dual Alignment of Vertical and Horizontal Fit

Academy of Management Journal, Forthcoming

53 Pages Posted: 8 Jan 2019

See all articles by Joo Hun Han

Joo Hun Han

Rutgers, The State University of New Jersey

Saehee Kang

Rutgers, The State University of New Jersey - Rutgers University, Newark

In‐Sue Oh

Temple University - Department of Human Resource Management

Rebecca R. Kehoe

Rutgers, The State University of New Jersey - Rutgers University, Newark

David P. Lepak

Rutgers School of Management and Labor Relations - New Brunswick

Date Written: January 2019

Abstract

Although vertical and horizontal fit in strategic human resource management (SHRM) are foundational to the links between a High Performance Work System (HPWS) and organizational performance, little is known about how these two fits interact to affect organizational performance. We address this shortcoming while also advancing knowledge on each type of fit. We offer a more nuanced examination of vertical fit (which has typically been assessed with respect to organizations’ broad strategic types) by focusing on the alignment of a HPWS with an organization’s market entry timing mode – a key element of strategy. We propose that among organizations pursuing new product development, the effect of a HPWS on organizational performance is most positive under a fast-follower entry timing, followed by a first-mover and finally a fence-sitter entry timing. We then hypothesize that the benefit of vertical fit is magnified when the complementary HR practices comprising a HPWS are implemented with greater internal consistency (or with similar intensities) across the ability, motivation, and opportunity domains – reflecting a positive interaction between vertical and horizontal fit in predicting the effectiveness of a HPWS. Analyses of four-wave nationally representative panel data yield strong support for our dual-alignment model of SHRM.

Keywords: SHRM, HPWS, product market entry timing, vertical fit, horizontal fit, organizational performance

Suggested Citation

Han, Joo Hun and Kang, Saehee and Oh, In-Sue and Kehoe, Rebecca R. and Lepak, David P., The Goldilocks Effect of Strategic Human Resource Management? Optimizing the Benefits of a High Performance Work System Through the Dual Alignment of Vertical and Horizontal Fit (January 2019). Academy of Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3312147

Joo Hun Han

Rutgers, The State University of New Jersey ( email )

311 North 5th Street
New Brunswick, NJ 08854
United States

Saehee Kang

Rutgers, The State University of New Jersey - Rutgers University, Newark ( email )

180 University Avenue
Newark, NJ 07102
United States

In-Sue Oh (Contact Author)

Temple University - Department of Human Resource Management ( email )

1801 Liacouras Walk
Alter Hall 343
Philadelphia, PA 19122
United States

HOME PAGE: http://www.fox.temple.edu/mcm_people/in-sue-oh/

Rebecca R. Kehoe

Rutgers, The State University of New Jersey - Rutgers University, Newark ( email )

180 University Avenue
Newark, NJ 07102
United States

David P. Lepak

Rutgers School of Management and Labor Relations - New Brunswick ( email )

Piscataway, NJ 08854
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
8
Abstract Views
66
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information