Business strategy and performance: the role of human resource management control

Abstract

Purpose

To illuminate how the alignment of HRM control and business strategy affects firm performance.

Design/methodology/approach

Empirical data are collected from computer and peripheral equipment industries via questionnaire. The measures include business strategy, HRM control, and performance. The major analytical technique used in this study is moderated hierarchical regression analysis.

Findings

The value of any approach to HRM control can be augmented or diminished by simultaneously matching the HRM to the type of business strategy adopted by firms.

Research limitations/implications

It is unknown how the selection of industries and geographical areas would affect this study's findings.

Practical implications

Firms should use an appropriate combination of HRM control systems aligned with their strategic goals in order to improve business performance.

Originality/value

This paper identifies the match between HRM control and business strategy and offers practical help to a firm when they are used in combination effectively.

Citation

Liao, Y. (2005), "Business strategy and performance: the role of human resource management control", Personnel Review, Vol. 34 No. 3, pp. 294-309. https://doi.org/10.1108/00483480510591444