Market Forces, Strategic Management, HRM Practices and Organizational Performance, a Model Based in European Sample

FEUNL Working Paper No. 415

44 Pages Posted: 14 Feb 2006

See all articles by Rita Campos e Cunha

Rita Campos e Cunha

New University of Lisbon

Miguel Pina e Cunha

Nova School of Business and Economics

António José Morgado

Instituto Politécnico de Lisboa - ISCAL

Chris Brewster

Henley Management College - Human Resource Management

Date Written: 2002

Abstract

This study uses structural equation modeling to test a model of the impact of human resources management practices on perceived organizational performance, on a large sample of European companies. The influences of competitive intensity, industry attractiveness and strategic management are considered in the model, and their direct and indirect influence on organizational performance is assessed. The model produced an adequate fit and results show that strategic management does influence human resource practices. Human resource flexibility practices and performance management have a positive impact on organizational performance, while training was not found to have a significant impact. A direct positive impact of competitive intensity and industry attractiveness on strategic management was supported by the data, as well as a direct positive effect of industry attractiveness on perceived organizational performance.

Suggested Citation

Campos e Cunha, Rita and Cunha, Miguel Pina e and Morgado, António José and Brewster, Chris, Market Forces, Strategic Management, HRM Practices and Organizational Performance, a Model Based in European Sample (2002). FEUNL Working Paper No. 415, Available at SSRN: https://ssrn.com/abstract=882030 or http://dx.doi.org/10.2139/ssrn.882030

Rita Campos e Cunha (Contact Author)

New University of Lisbon ( email )

Campus de Carcavelos
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

Miguel Pina e Cunha

Nova School of Business and Economics ( email )

Campus de Carcavelos
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

António José Morgado

Instituto Politécnico de Lisboa - ISCAL ( email )

Avenida Miguel Bombarda 20
Lisbon, 1050-053
Portugal

Chris Brewster

Henley Management College - Human Resource Management ( email )

Greenlands
Henley-on-Thames
Oxfordshire RG9 3AU, England
United Kingdom