A theory of the firm's demand for HRM practices
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Empirical data are presented that reveal a large variation in the pattern of HRM practice adoption across firms. The paper then develops an economics-based theory that explains this pattern. The model broadens the HRM concept; models the linkage between HRM practices and firm performance (the 'black box'); generates an HRM input demand function and demand curve; formalizes the concept of strategic HRM; suggests a new empirical tool for HRM research; generates new hypotheses and insights on the nature of the HRM-firm performance relationship; suggests that existing theories of the HRM-firm performance relationship are seriously mis-specified; and posits that on theoretical grounds the effect of more HRM on firm performance in long-run competitive equilibrium is not positive but zero.
The International Journal of Human Resource Management
Copyright 2010 Routledge. This is an electronic version of an article published in International Journal of Human Resource Management, Volume 21, Issue 5, 2010 , Pages 615-636. The International Journal of Human Resource Management is available online at: http://www.informaworld.com with the open URL of your article.
Business and Management not elsewhere classified