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The International Journal of Human Resource Management Volume 21, 2010 - Issue 9
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Original Articles

The relationship between human resource management practices, business strategy and firm performance: evidence from steel industry in Taiwan

Feng-Hui Lee Institute of International Management, National Cheng Kung University, TaiwanCorrespondence[email protected]
,
Tzai-Zang Lee Department of Business Administration, Kun Shan University of Technology, Taiwan
&
Wann-Yih Wu Institute of International Management, National Cheng Kung University, Taiwan
Pages 1351-1372 | Published online: 08 Jul 2010
 
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Abstract

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.

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