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The International Journal of Human Resource Management Volume 20, 2009 - Issue 11: ‘Making Sense’ of HRM in China
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Selected Micro- and Macro- Studies

High performance work practices and firm performance: evidence from the pharmaceutical industry in China

Yi-Chi Zhang Department of Management and Organization, Guanghua School of Management, Peking University, Beijing, P.R. ChinaCorrespondence[email protected]
&
Shu-Ling Li Department of Management and Organization, Guanghua School of Management, Peking University, Beijing, P.R. China
Pages 2331-2348 | Published online: 10 Nov 2009
 
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Abstract

The current study analyzed the relationship of high performance work practices and firm performance in a sample of pharmaceutical companies in China. We found that the human resource management index composed of high performance work practices such as extensive training, participation, detailed job definition, result-oriented performance appraisal, internal career opportunities, and profit sharing as reported by the human resource or finance managers was significantly related to firm's market performance as evaluated by the firm's general managers or marketing directors. Results also showed that the positive effect of the HRM index on firm's performance was influence by innovation strategy in negative direction. Results extend our knowledge about strategic human resource management theory and suggest the need for further studies to identify other contingencies that may attenuate the universalistic nature of these valued practices.

Acknowledgement

This study is funded by a grant from the National Science Foundation of China (Grant Number 70572018).

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