Human Resource Management's Effects on Firm-Level Relative Efficiency

Clint Chadwick; Ji Young Ahn; Kiwook Kwon

doi:10.1111/j.1468-232X.2012.00696.x

Human Resource Management's Effects on Firm-Level Relative Efficiency

Clint Chadwick
, Ji Young Ahn
, Kiwook Kwon

Division of Business Administration

Research output: Contribution to journal › Article › peer-review

10 Scopus citations

Abstract

Using stochastic frontier production functions methodology with data from 1579 private-sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm-level efficiency. Supplemental analysis implies that this efficiency analysis is substantively different than the common approach to evaluating HRM's relationships with firm-level labor productivity. The results suggest that HR practices' contributions to relative firm-level efficiency are an important but heretofore overlooked factor in the relationship between HRM and firm performance.

Original language	English
Pages (from-to)	704-730
Number of pages	27
Journal	Industrial Relations
Volume	51
Issue number	3
DOIs	https://doi.org/10.1111/j.1468-232X.2012.00696.x
State	Published - Jul 2012

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abstract = "Using stochastic frontier production functions methodology with data from 1579 private-sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm-level efficiency. Supplemental analysis implies that this efficiency analysis is substantively different than the common approach to evaluating HRM's relationships with firm-level labor productivity. The results suggest that HR practices' contributions to relative firm-level efficiency are an important but heretofore overlooked factor in the relationship between HRM and firm performance.",

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AB - Using stochastic frontier production functions methodology with data from 1579 private-sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm-level efficiency. Supplemental analysis implies that this efficiency analysis is substantively different than the common approach to evaluating HRM's relationships with firm-level labor productivity. The results suggest that HR practices' contributions to relative firm-level efficiency are an important but heretofore overlooked factor in the relationship between HRM and firm performance.

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Human Resource Management's Effects on Firm-Level Relative Efficiency

Abstract

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