The effect of aligning organizational culture and business strategy with HR systems on firm performance in Chinese enterprises

Abstract

This study examines the differential impact of an alignment of organizational culture and business strategy through which inducement-HR and involvement-HR systems may affect firm performance. It contributes to the strategic fit of the HRM literature by using empirical data from 451 firms in southern China to evaluate the linkages among organizational culture, HR systems, business strategies and organizational performance. The results show some support for an HR-organizational culture fit and an HR-business strategy fit, and have important managerial implications for matching the organizational culture and business strategy with an organization's choice of HR systems to achieve maximum impact on organizational performance.

Keywords:

• China
• business
• culture
• HR practices
• organizational culture
• organizations
• strategic fit
• strategy