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Understanding HRM–Firm Performance Linkages: The Role of the “Strength” of the HRM System
Abstract
Theory building has lagged on the intermediate linkages responsible for the relationship between HRM and firm performance. We introduce the construct “strength of the HRM system” and describe the meta-features of an HRM system that result in a strong organizational climate, analogous to Mischel's “strong situation,” in which individuals share a common interpretation of what behaviors are expected and rewarded. The strength of the HRM system can help explain how individual employee attributes accumulate to affect organizational effectiveness.
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“, distinctiveness, consistency, and consensus) (Bowen and Ostroff, 2004) has a pivotal role in relation to HRM practices.”
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Kehoe, R. R. (2019) · Academy of Management Perspectives · doi:10.5465/amp.2019.0070 · Cited by 33
“Bowen and Ostroff (2004) highlighted an important distinction between HRM content and process.”
BackgroundFinster, M., & Milanowski, A. T. (2018) · doi:10.14507/epaa.26.3500 · Cited by 33
“Based on the management literature (e.g., Bowen & Ostroff, 2004; Dickson, Resick, & Hanges, 2006; Lindell & Brandt, 2000), we further argue that PESs can help create this shared conception.”
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Wahlberg, T. A., Ramalho, N., & Brochado, A. (2017) · Tourism Review · doi:10.1108/tr-03-2017-0050 · Cited by 33
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Employees' satisfaction with HRM in Chinese privately-owned enterprises
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Batistič, S., & Poell, R. F. (2022) · Journal of Business Research · doi:10.1016/j.jbusres.2022.04.016 · Cited by 40
“HR systems as a contextual variable can influence or change employees’ behaviors (Jackson, Schuler, & Rivero, 1989) as a configuration or bundle of stimuli in place (e.g., Batistič et al., 2016; Bowen & Ostroff, 2004; Johns, 2006).”
BackgroundThe adoption of high performance work systems in foreign subsidiaries
Foley, S., Ngo, H., & Loi, R. C. H. (2010) · Journal of World Business · doi:10.1016/j.jwb.2010.10.025 · Cited by 37
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“mutually reinforcing conditions that shape employee attitudes and behaviours (Bowen and Ostroff, 2004).”
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“…commonly occur at either an organizational, functional, departmental, or group level, whereas the behaviors and cognitions they seek to influence are located at the level of the individual employee (Bowen & Ostroff, 2004; Snape & Redman, 2010; Wright & Boswell, 2002; Wright & Nishii, 2007).”
BackgroundGroen, B. A. C. (2018) · Journal of Management Accounting Research · doi:10.2308/jmar-52072 · Cited by 41
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“Furthermore, research also demonstrates that the meanings employees assign to HR programs play an important role in affecting employee outcomes (Bowen & Ostroff, 2004; Nishii, Lepak, & Schneider, 2008; Nishii & Wright, 2007; Sanders & Yang, 2016).”
BackgroundA Critical Review of Organizational Culture on Employee Performance
Narayana, A. (2017) · doi:10.11648/j.ajetm.20170205.13 · Cited by 32
Aagaard, A. (2017) · Journal of Product Innovation Management · doi:10.1111/jpim.12387 · Cited by 34
“innovation in practice and HR practices influence one another (Aagaard and Andersen, 2015; Bowen and Ostroff, 2004).”
BackgroundDoctor-patient relationships (DPR) in China
Ma, S., Xu, X., Trigo, V., & Ramalho, N. C. (2017) · Journal of Health Organization and Management · doi:10.1108/jhom-09-2016-0165 · Cited by 64
Who is attracted to an organisation using a forced distribution performance management system?
Blume, B. D., Rubin, R. S., & Baldwin, T. T. (2013) · Human Resource Management Journal · doi:10.1111/1748-8583.12016 · Cited by 45
“HRM systems are among the most salient aspect of an organisation’s environment (Wayne and Casper, 2012), and the performance management subsystem is of particular importance (Lawler, 1973; Bowen and Ostroff, 2004).”
BackgroundA contextual, flexibility‐based model of the HR‐firm performance relationship
Tracey, J. (2012) · Management Decision · doi:10.1108/00251741211227609 · Cited by 32
Unlocking the black box: exploring the link between high-performance work systems and performance
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“results are consistent with Bowen and Ostroff’s (2004) intermedi-”
ResultLambooij, M., Sanders, K., Koster, F., & Zwiers, M. (2006) · management revue · doi:10.5771/0935-9915-2006-3-223 · Cited by 37
“Some studies therefore argue that we need to take both the employers’ and employees’ perceptions of the situation into account in order to better understand the HRM-performance relationship (see: Bowen & Ostroff, 2004; Tsui & Wang, 2002).”
BackgroundInfluentialShantz, A. D., Wang, J., & Malik, A. R. (2017) · Human Resource Management · doi:10.1002/hrm.21845 · Cited by 44
“Finally, the (in)effectiveness of formal policy is also of great interest to HRM scholarship, as theoretical models imply that the benevolent intentions underpinning some policies translate into positive outcomes (e.g., Bowen & Ostroff, 2004; Guest, 1987), which may not always be the case.”
BackgroundAssessing human resource practices alignment: A case study
Heneman, H. G., & Milanowski, A. T. (2011) · doi:10.1002/hrm.20405 · Cited by 32
“For vertical alignment, a major refinement has been to provide a behavioral explanation for how HR practices can have strategic impacts (Bowen & Ostroff, 2004; Wright & McMahan, 1992).”
BackgroundHu, D., Oh, I., & Agolli, A. (2025) · Human Resource Management · doi:10.1002/hrm.22309 · Cited by 38
Creating an age-inclusive workplace: The impact of HR practices on employee work engagement
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“…HR practices can serve as a symbol of organizations ’ willingness to assist group members and to establish an organizational climate that collectively shapes employee attitudes at the organizational level (Bowen & Ostroff, 2004; Den Hartog, Boselie, & Paauwe, 2004; Polat, Bal, & Jansen, 2017).”
BackgroundThe two faces of HPWS in employee perceptions and organizational performance
Park, J., Ok, C., & Ryu, S. (2023) · Asia Pacific Management Review · doi:10.1016/j.apmrv.2023.03.001 · Cited by 31
Hassett, M. P. (2022) · Public Personnel Management · doi:10.1177/00910260221098189 · Cited by 46
“How employees perceive their job duties and work environment can affect their attitudes and behavior, which has implications at both the individual and organizational levels (Borst, 2018; Bowen & Ostroff, 2004; Jin et al., 2019).”
BackgroundPortocarrero, S., & Carter, J. T. (2022) · Sociology Compass · doi:10.1111/soc4.13001 · Cited by 73
“Although often ambiguous and undifferentiated, diversity initiatives provide stakeholders with at least some information about the values and priorities in an organization (Bowen & Ostroff, 2004 ).”
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“8 Third, we did not examine the potentially critical role of HPWPs’ implementation and its effectiveness (Guest & Bos-Nehles, 2013) nor did we measure the ‘strength’ of HPWPs, especially from the perspective of employees (Bowen & Ostroff, 2004).”
BackgroundThe role of HR attributions in the HRM – Outcome relationship: Introduction to the special issue
Sanders, K., Guest, D., & Rodrigues, R. (2021) · Human Resource Management Journal · doi:10.1111/1748-8583.12358 · Cited by 31
Luu, T. T. (2020) · Public Management Review · doi:10.1080/14719037.2020.1730942 · Cited by 45
“…finding is consistent with Chuang, Jackson, and Jiang (2016) substitutive effects of HRM systems and leadership, we should acknowledge that other types of HR practices and leadership may interact in different ways, for instance in a synergistic rather than substitutive way (Bowen and Ostroff 2004).”
ResultHRM systems and employee affective commitment: the role of employee gender
Shin, D., Garmendia, A., Ali, M., Konrad, A., & Madinabeitia-Olabarria, D. (2020) · Gender in Management · doi:10.1108/gm-04-2019-0053 · Cited by 31
Clarke, N., Alshenalfi, N., & Garavan, T. (2019) · Human Resource Management · doi:10.1002/hrm.21967 · Cited by 31
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“As the most proximal agent of the organization for employees, supervisors typically have the primary responsibility for implementing HPWS, converting the organization’s intended HRM policies into the actual practices that employees experience (Bowen & Ostroff, 2004; Purcell & Hutchinson, 2007).”
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“Moreover, HPWS foster employee understanding of the behavioural norms and standards within the organization and build a clear and transparent system of rewards and punishments (Bowen and Ostroff 2004; Jiang et al. 2012).”
BackgroundAdvancing human resource management scholarship through multilevel modeling
Shen, J., Messersmith, J., & Jiang, K.-F. (2018) · The International Journal of Human Resource Management · doi:10.1080/09585192.2017.1331622 · Cited by 31
“This is certainly the case in HRM research, where an increased emphasis on strategic HRM (i.e. Bowen & Ostroff, 2004; Guest, 2011) has led to a heightened need to understand the complex nature of the multilevel effects of HRM systems.”
BackgroundTransforming cross-cultural conflict into collaboration
Chen, Y., Chao, M. C., Xie, H. Y., & Tjosvold, D. (2017) · Cross Cultural & Strategic Management · doi:10.1108/ccsm-10-2016-0187 · Cited by 35
High-performance work systems, partnership and the working lives of HR professionals.
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Shen, J., & D’Netto, B. (2012) · doi:10.1080/13602381.2011.601163 · Cited by 31
“Bowen and Ostroff (2004) have argued that an HRM system that is not regarded as having been put in place for the purpose of taking care of employees has a negative impact on their attitudes, behaviour and performance.”
BackgroundPalmieri, P. A., Peterson, L. T., Pesta, B. J., Flit, M. A., & Saettone, D. M. (2010) · Advances in health care management · doi:10.1108/s1474-8231(2010)0000009009 · Cited by 34
The moderate success of quality of care improvement efforts: three observations on the situation.
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“Employees rely on cues from their surrounding work environments to help them interpret events, develop attitudes, and understand expectations concerning their behavior and its consequences [22].”
BackgroundNishii, L., & Bruyere, S. (2016) · doi:10.7591/cornell/9781501700583.003.0006 · Cited by 31
Human resource management system strength in times of crisis
Sanders, K., Nguyen, P. T., Bouckenooghe, D., Rafferty, A. E., Schwarz, G. M., Elias, A., jorgensen, F., Amarakoon, U., Babar, S., Bednall, T. C., et al. (2023) · Journal of Business Research · doi:10.1016/j.jbusres.2023.114365 · Cited by 43
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HRM system strength and employee well‐being: the role of internal process and open systems
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Lin, C., Sanders, K., Sun, J.-M., Shipton, H., & Mooi, E. (2020) · The International Journal of Human Resource Management · doi:10.1080/09585192.2018.1474938 · Cited by 30
“Because HRM practices are activities associated with the management of work and people (Boxall and Purcell, 2011) and are the primary means through which an organization communicates to employees (Guzzo and Noonan, 1994; Bowen and Ostroff, 2004), employee orientation is primarily manifested through HRM practices.”
BackgroundKim, K., Ok, C., Kang, S.-C., Bae, J., & Kwon, K. (2020) · Human Resource Management · doi:10.1002/hrm.22030 · Cited by 30
Can managing employee diversity be a pathway to creativity for tour companies?
Tuấn, L. T. (2019) · International Journal of Contemporary Hospitality Management · doi:10.1108/ijchm-12-2018-0990 · Cited by 38
Exploring the Curvature of the Relationship Between HRM–CSR and Corporate Financial Performance
Meier, O., Naccache, P., & Schier, G. (2019) · Journal of Business Ethics · doi:10.1007/s10551-019-04332-3 · Cited by 30
Amberg, J. J., & Mcgaughey, S. L. (2019) · The International Journal of Human Resource Management · doi:10.1080/09585192.2016.1192051 · Cited by 30
“…been criticised for focussing too narrowly on the perceptions of formal HRM practices held by HRM departments’ personnel and top management (Bowen and Ostroff 2004) and single-respondent, cross-sectional survey designs (Wright et al. 2001), rather than on how workers and subsidiary or…”
BackgroundMasud, H., Daud, W., Zainol, F. A., Rashid, N., & Afthanorhan, A. (2018) · International Journal of Academic Research in Business and Social Sciences · doi:10.6007/ijarbss/v8-i11/5159 · Cited by 30
“Connecting this with the viewpoint of HRM scholars, when HRM practices are operationalized at macro-level, their output can be observed the organizational level in the form of favorable work outcomes only if individuals also face the effects of these HRM practices (at the micro level) (Bowen and Ostroff, 2004).”
MethodSchmidt, J. A., Pohler, D. M., & Willness, C. R. (2017) · Human Resource Management · doi:10.1002/hrm.21836 · Cited by 56
Gubbins, C., Harney, B., van der Werff, L., & Rousseau, D. M. (2018) · Human Resource Development Quarterly · doi:10.1002/hrdq.21313 · Cited by 43
It’s more complicated than we think: The implications of social capital on innovation
Wang, S., Guidice, R. M., Zhou, Y., & Wang, Z. (2016) · Asia Pacific Journal of Management · doi:10.1007/s10490-016-9491-y · Cited by 27
Transformative HR practices and employee task performance in high-tech firms
Bodla, A. A., & Tang, N. (2017) · Journal of Organizational Change Management · doi:10.1108/jocm-02-2016-0030 · Cited by 31
Lin, Y., & Liu, N. (2016) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2016.04.005 · Cited by 34
Pinto, A. M., Ramos, S. C. D. S., & Nunes, S. (2014) · Tékhne · doi:10.1016/j.tekhne.2015.01.007 · Cited by 30
“Moreover, their nfluence on the attributes of workers will lead to the chievement of the desired outcomes at the organizational evel, particularly in terms of productivity, financial perormance, competitive advantage and innovative behavior Bowen & Ostroff, 2004).”
BackgroundOrganizational Climate on Employees' Work Passion: A Review
Permarupan, P., Al-Mamun, A., Saufi, R. B. A., & Zainol, N. (2013) · doi:10.3968/j.css.1923669720130904.2612 · Cited by 30
“…a shared perception of what the organization is like in terms of practices, policies, procedures, routines, and rewards- what is important and what behaviors are expected and rewarded- and is based on shared perceptions among employees within formal organizational units (Bowen & Ostroff, 2004) .””
BackgroundAdoption of Employee Involvement Practices: Organizational Change Issues and Insights
Benson, G., Kimmel, M., & Lawler, E. (2013) · Emerald Group Publishing Limited eBooks · doi:10.1108/s0897-3016(2013)0000021011 · Cited by 30
“They argue that distinct, coherent practices create a strong HR climate, mitigating individual differences in perceptions of specific practices and giving priority to the shared climate in shaping employee behavior (Bowen & Ostroff, 2004).”
BackgroundInfluentialCherian, J. P., & Farouq, S. (2013) · International Journal of Economics and Finance · doi:10.5539/ijef.v5n7p105 · Cited by 17
“SHRM can make HRM practices as specialized line functions (Bowen & Ostroff 2004; Ulrich 1998).”
Rangarajan, N., & Rahm, D. (2011) · Review of Public Personnel Administration · doi:10.1177/0734371x11408706 · Cited by 30
“Similarly, there is a significant body of research that explores the link between strong HR practices and strong private firm performance (Becker & Huselid, 1998; Bowen & Ostroff, 2004).”
BackgroundTrust and the Role of the Psychological Contract in Contemporary Employment Relations
Guest, D. (2016) · Industrial relations & conflict management · doi:10.1007/978-3-319-31475-4_8 · Cited by 30
Dill, J. S., Morgan, J., & Weiner, B. (2014) · Health Care Management Review · doi:10.1097/hmr.0b013e31829fcbfd · Cited by 30
“Consequently, we expect that supervisors and managers may influence the way that HPWPs are perceived by employees (Bowen & Ostroff, 2004).”
BackgroundXie, H., Fang, Y.-R., Wang, M., Liu, J., & Lv, A.-Q. (2023) · Work, Aging and Retirement · doi:10.1093/workar/waad004 · Cited by 31
Salvador-Gómez, A., Bou-Llusar, J., & Beltrán‐Martín, I. (2023) · International journal of human resources management · doi:10.1080/09585192.2022.2163855 · Cited by 29
“…attempt to disentangle these processes, a stream of the HRM literature has focused on how HR practices are adopted, under the premise that if they are not properly implemented, they may have minimal impact on performance, regardless of how well designed they are (Bowen & Ostroff, 2004; Chow, 2012).”
BackgroundRen, S., Wang, Z., & Collins, N. T. (2021) · Personnel Review · doi:10.1108/pr-07-2020-0506 · Cited by 38
Díaz-Fernández, M., López-Cabrales, Á., & Valle-Cabrera, R. (2020) · Business Research Quarterly · doi:10.1177/2340944420977506 · Cited by 29
“Following Bowen and Ostroff (2004) and Ostroff and Bowen (2016), HRM system strength is defined by its distinctiveness, consistency and consensus, variables that positively affect a psychological and organizational climate that produces individual and firm performance.”
BackgroundMethodInfluentialWhen do low-initiative employees feel responsible for change and speak up to managers?
Starzyk, A., & Sonnentag, S. (2019) · Journal of Vocational Behavior · doi:10.1016/j.jvb.2019.103342 · Cited by 37
Ouerdian, E. G. B., Mansour, N., Al-Zahrani, A., & Chaari, A. (2017) · The International Journal of Human Resource Management · doi:10.1080/09585192.2017.1322117 · Cited by 36
Kaur, P. (2018) · Metamorphosis · doi:10.1177/0972622518804025 · Cited by 35
Chao, M., & Shih, C.-T. (2018) · The International Journal of Human Resource Management · doi:10.1080/09585192.2016.1256904 · Cited by 29
“This concept, called horizontal or internal fit, contrasts with how an HRM system interplays with an organization’s competitive strategy to influence organizational performance (e.g. Bowen & Ostroff, 2004), which is called vertical or external fit.”
BackgroundVoice Climate, TMX, and Task Interdependence: A Team-Level Study
Duan, J., Xu, Y. Q., & Frazier, M. L. (2018) · Small Group Research · doi:10.1177/1046496418805855 · Cited by 30
Bendickson, J., Gur, F. A., & Taylor, E. C. (2018) · doi:10.1002/cjas.1412 · Cited by 29
The development of strategic HRM: reflections on a 30-year journey
Boxall, P. (2018) · Labour & Industry a journal of the social and economic relations of work · doi:10.1080/10301763.2018.1427423 · Cited by 29
“This is the key emphasis in the process approach that has gained momentum since influential papers by Purcell (1999) and Bowen and Ostroff (2004).”
BackgroundExtrinsic work values and feedback: Contrary effects for performance and well-being
Merriman, K. K. (2016) · Human Relations · doi:10.1177/0018726716655391 · Cited by 33
“At the same time, performance management practices are often treated uniformly in application and expected results without sufficient attention to employee differences (Bowen and Ostroff, 2004; Nishii et al., 2008).”
BackgroundStrategic HRM and devolving HR to the line: Cochlear during the shift to lean manufacturing
Gollan, P. J., Kalfa, S., & Xu, Y. (2014) · Asia Pacific Journal of Human Resources · doi:10.1111/1744-7941.12055 · Cited by 29
Chalikias, M., Kyriakopoulos, G. L., Skordoulis, M., & Koniordos, M. (2014) · Joint Conference on Knowledge-Based Software Engineering · doi:10.1007/978-3-319-11854-3_44 · Cited by 29
Challenges, issues and change: what's the future for UK policing in the twenty‐first century?
Barton, L., & Barton, H. (2011) · doi:10.1108/09513551111109044 · Cited by 29
Dickmann, M., Muller-Camen, M., & Kelliher, C. (2008) · doi:10.1108/00483480910920688 · Cited by 29
“A number of observers have noted the tendency for HR research to be focused either at the macro or micro level and have called for multi-level research to be conducted (Bowen and Ostroff, 2004; Wright and Boswell, 2002).”
BackgroundExploring the influence of paternalistic leadership on voice behavior
Jia, J., Zhou, S., Zhang, L., & Jiang, X. (2020) · Employee Relations · doi:10.1108/er-06-2019-0263 · Cited by 41
Oppel, E., Winter, V., & Schreyögg, J. (2017) · Health Care Management Review · doi:10.1097/hmr.0000000000000087 · Cited by 29
A taxonomic foundation for evidence-based research on employee performance management
Posthuma, R. A., Charles Campion, M., & Campion, M. A. (2018) · European Journal of Work and Organizational Psychology · doi:10.1080/1359432x.2018.1438411 · Cited by 28
“For example, a strong organizational culture will significantly influence employee behaviours (Bowen & Ostroff, 2004).”
BackgroundInfluentialDriving intrapreneurial behavior through high-performance work systems
Portalanza-Chavarría, A., & Revuelto-Taboada, L. (2023) · The International Entrepreneurship and Management Journal · doi:10.1007/s11365-023-00848-3 · Cited by 28
“Based on this process perspective, Bowen and Ostroff (2004) introduced the construct of Human Resource Management System Strength (HRMS).”
BackgroundMethodAfota, M., Savard, Y. P., Ollier‐Malaterre, A., & Leon, E. A. (2022) · The International Journal of Human Resource Management · doi:10.1080/09585192.2022.2090269 · Cited by 42
“Because HR practices contribute to shaping climate perceptions (Bowen & Ostroff, 2004), practitioners can fruitfully leverage these findings to design sustainable WFH programs.”
BackgroundFlynn, E., & Leslie, L. M. (2022) · Journal of Applied Psychology · doi:10.1037/apl0001023 · Cited by 28
“Novel and costly policies are often viewed as particularly strong signals of underlying characteristics (Bowen & Ostroff, 2004; Connelly et al., 2011), which further suggests egg freezing coverage may evoke positive attitudes because employees interpret the policy as a strong signal of…”
Background
Metadata
- Authors
- Bowen, D. E., & Ostroff, C.
- Affiliations
- Thunderbird, The American Graduate School of International Management
- Columbia University (US)
- Venue
- Academy of Management Review
- Publisher
- Academy of Management
- Published
- 2004-04
- Volume
- 29
- Issue
- 2
- Pages
- 203-221
- ISSN
- 0363-7425 (ISSN-L)
- 1930-3807
- OpenAlex
- W2079667200
- Cited by
- 2,996
- References
- 0
- Citations by year
- 2026: 127 · 2025: 105 · 2024: 153 · 2023: 184 · 2022: 161 · 2021: 197 · 2020: 195 · 2019: 195 · 2018: 190 · 2017: 170 · 2016: 200 · 2015: 157 · 2014: 189 · 2013: 167 · 2012: 148
- FWCI
- 77.01
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Academy of Management Review (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Human Resource and Talent Management
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Employee Performance and Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Management and Organizational Practices
- Keywords
- human resource management, firm performance, HRM system strength, organizational climate, employee characteristics, organizational effectiveness
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