Human resources strategy as a catalyst for the success of the competitive strategy: an analysis based on alignment
ISSN: 0048-3486
Article publication date: 24 May 2021
Issue publication date: 3 May 2022
Abstract
Purpose
Competitive strategy is one of the key factors traditionally related to performance, but research explaining the mechanisms through which this strategy improves business results is scant. This study aims to shed light on this relationship by analyzing human resource management (HRM) strategy as an essential tool for transforming business strategy into results.
Design/methodology/approach
Focusing on two generic competitive strategies, the authors establish hypotheses on the need for alignment among four echelons: business strategy, HRM system objectives, HRM system capabilities and business performance. The authors test these hypotheses with structural equation modeling techniques using data provided by 204 industrial companies.
Findings
The results show that to get the most out of a competitive strategy based on quality differentiation, HRM system objectives and capabilities must be focussed on quality. In the same way, a competitive strategy based on innovation differentiation requires HRM system objectives and capabilities focussed on flexibility to achieve the maximum impact on performance. In this second case, alignment is fundamental in low dynamic environments.
Originality/value
This research not only provides additional evidence for the strategic relevance of the human resources (HR) function but also reveals the potential benefits of focusing on objectives and capabilities rather than on practices. Moreover, it shows that the role of HRM objectives and capabilities in the implementation of a competitive strategy can be shaped by factors beyond the company's control, such as environmental dynamism.
Keywords
Acknowledgements
This study was carried out within the framework of research projects ECO2016-76876-R and ECO2013-47280-R, financed by Plan Nacional I+D+i, Ministerio de Economía y Competitividad, and research project PID2019-107546GA-I00, financed by Plan Nacional I+D+i, Ministerio de Ciencia y Tecnología. Support was also received from research project SA106P20 funded by Junta de Castilla y León.
Citation
Gonzalez-Benito, J., Suárez-González, I. and González-Sánchez, D. (2022), "Human resources strategy as a catalyst for the success of the competitive strategy: an analysis based on alignment", Personnel Review, Vol. 51 No. 4, pp. 1336-1361. https://doi.org/10.1108/PR-04-2020-0254
Publisher
:Emerald Publishing Limited
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