Flexing to outperform: workforce differentiation, HR flexibility and firm performance

Purpose Resource orchestration theory proposes that firms need resources, capabilities, and horizontal and vertical alignment to achieve high performance. Thus, we investigate which combinations of horizontal fit of resources (commitment-based HR systems for managers and nonmanagers) and capabilitie...

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Detalles Bibliográficos
Autores: Apascaritei, P. (Paula)|||/items/84660cf0-44ac-4413-986e-06a1e8edf3d5, Elvira, M.M. (Marta María)|||/items/d7ddae17-1301-43dc-8dd8-63936317c7fd, Rodríguez-García, M. (María)|||/items/61517100-e42d-4df4-adcd-36a704fe2d96
Tipo de recurso: artículo
Fecha de publicación:2024
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/111671
Acceso en línea:https://hdl.handle.net/10171/111671
Access Level:acceso abierto
Palabra clave:HR differentiation
HR flexibility
Business strategy
FsQCA
Descripción
Sumario:Purpose Resource orchestration theory proposes that firms need resources, capabilities, and horizontal and vertical alignment to achieve high performance. Thus, we investigate which combinations of horizontal fit of resources (commitment-based HR systems for managers and nonmanagers) and capabilities (HR flexibility) together with vertical fit with business strategy (innovation versus cost leadership strategies) relate to superior performance. Design/methodology/approach Our study is based on a sample of 113 Spanish firms from which we collected data on commitment-based HR systems for managers and nonmanagers, HR flexibility, business strategy and performance. We employ a fuzzy set qualitative comparative analysis (fsQCA) to analyze which configurations lead to firm performance. Findings The empirical analysis shows that both HR practices and policies (commitment-based HR systems) and HR capabilities (HR flexibility) need to be aligned for high performance. The path for performance is comprised of a combination of commitment-based HR systems for staff and HR flexibility and by the absence of an innovation strategy or commitment-based HR systems for managers, HR flexibility, and a cost leadership strategy. We also find four paths where performance relies on efficiently combining an innovation and cost leadership business strategy. Originality/value Our findings make three key contributions to the literature. First, we help elucidate multicausal relationships inside the black box of the “HR–performance” relationship for firm performance. Second, we study the vertical fit with business strategy by considering innovation and cost leadership strategies. Third, we analyze multicausal pathways, thus uncovering different combinations of resources and capabilities for performance.