Cited by 2,996Human Resource and Talent ManagementEmployee Performance and ManagementManagement and Organizational Practices

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Understanding HRM–Firm Performance Linkages: The Role of the “Strength” of the HRM System

Bowen, David E., Ostroff, Cheri·2004·Academy of Management Review

DOI 10.5465/amr.2004.12736076

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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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BackgroundMethodInfluential
High commitment HR practices, the employment relationship and job performance: A test of a mediation model
Latorre, F., Guest, D. E., Ramos, J., & Gracia, F. J. (2016) · European Management Journal · doi:10.1016/j.emj.2016.05.005 · Cited by 164
“In line with signalling theory (Bowen & Ostroff, 2004), we expect that the presence of more high commitment HR practices will be positively associated with POS.”
Background
Understanding the link between work life balance practices and organisational outcomes in SMEs: The mediating effect of a supportive culture
Cegarra‐Leiva, D., Sanchez-Vidal, M., & Cegarra-Navarro, J. (2012) · doi:10.1108/00483481211212986 · Cited by 149
Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation
Ferreira, J., & Coelho, A. (2020) · International Journal of Innovation Science · doi:10.1108/ijis-10-2018-0108 · Cited by 190
Managing flexible work arrangements: Teleworking and output controls
Groen, B., van Triest, S., Coers, M., & Wtenweerde, N. (2018) · European Management Journal · doi:10.1016/j.emj.2018.01.007 · Cited by 147
“…about control policies, is that employee perceptions are the most proximal to the attitu-dinal and behavioural responses of employees that should lead to positive outcomes such as higher employee job performance and satisfaction (Bowen & Ostroff, 2004; Kehoe & Wright, 2013; Nishii & Wright, 2008).”
Strategic HRM in building micro-foundations of organizational knowledge-based performance
Minbaeva, D. (2012) · Human Resource Management Review · doi:10.1016/j.hrmr.2012.10.001 · Cited by 158
Employee engagement: a sceptical analysis
Guest, D. E. (2014) · Journal of Organizational Effectiveness People and Performance · doi:10.1108/joepp-04-2014-0017 · Cited by 172
A meta-analytic investigation into the moderating effects of situational strength on the conscientiousness–performance relationship
Meyer, R. D., Dalal, R. S., & Bonaccio, S. (2009) · Journal of Organizational Behavior · doi:10.1002/job.602 · Cited by 145
“…& Paluck, 2003; Wallace, Paulson, Lord, & Bond, 2005), metafeatures of the human resource management system such as consistently enforced rules (Bowen & Ostroff, 2004; see also Davis-Blake & Pfeffer, 1989), industry norms and market uncertainty (Mullins & Cummings, 1999), perceived control…”
Background
A Matter of Learning: How Human Resources Affect Organizational Performance
Camps, J., & Luna-Arocas, R. (2010) · British Journal of Management · doi:10.1111/j.1467-8551.2010.00714.x · Cited by 144
Employee benefits: Literature review and emerging issues
Dulebohn, J. H., Molloy, J. C., Pichler, S. M., & Murray, B. (2008) · Human Resource Management Review · doi:10.1016/j.hrmr.2008.10.001 · Cited by 162
Strategic promotion tournaments and worker performance
DeVaro, J. (2006) · Strategic Management Journal · doi:10.1002/smj.542 · Cited by 146
A lifespan perspective for understanding career self-management and satisfaction: The role of developmental human resource practices and organizational support
Jung, Y., & Takeuchi, N. (2017) · Human Relations · doi:10.1177/0018726717715075 · Cited by 157
“This line of inquiry suggests that employees’ perceptions of organizational practices or support are more directly linked to their work attitudes and behaviors than actual organizational programs (Bowen and Ostroff, 2004; Nishii et al., 2008).”
BackgroundResult
Examining the Intermediate Role of Employee Abilities, Motivation and Opportunities to Participate in the Relationship between HR Bundles and Employee Performance
Beltrán‐Martín, I., & Bou-Llusar, J. (2018) · BRQ Business Research Quarterly · doi:10.1016/j.brq.2018.02.001 · Cited by 142
“…another (i.e. they form a strong HR system), they help to develop similar causal maps among employees, for instance by inducing uniformity in perceptions of the situation or expected responses, which facilitates ‘‘compliance and conformity through social influence’’ (Bowen and Ostroff, 2004:213).”
Background
Guest editors' introduction: Is the HRM process important? Past, current, and future challenges
Sanders, K., Shipton, H., & Gomes, J. (2014) · Human Resource Management · doi:10.1002/hrm.21644 · Cited by 142
High‐performer turnover and firm performance: The moderating role of human capital investment and firm reputation
Kwon, K., & Rupp, D. (2013) · Journal of Organizational Behavior · doi:10.1002/job.1804 · Cited by 142
Working below and above the line: the research–practice gap in diversity management
Kulik, C. T. (2014) · Human Resource Management Journal · doi:10.1111/1748-8583.12038 · Cited by 158
Strategic human resource management and supply chain orientation
Lengnick-Hall, M., Lengnick-Hall, C., & Rigsbee, C. (2013) · Human Resource Management Review · doi:10.1016/j.hrmr.2012.07.002 · Cited by 142
Perceptions of HR practices, person–organisation fit, and affective commitment: The moderating role of career stage
Kooij, D. T. A. M., & Boon, C. T. (2017) · Human Resource Management Journal · doi:10.1111/1748-8583.12164 · Cited by 160
“…by organizational factors (e.g., Bretz & Judge, 1994; Kim, Cable, & Kim, 2005), and that, more specifically, HR systems can increase employees’ perceptions of goal alignment and feelings of value congruence with the organization (Bowen & Ostroff, 2004; Bretz & Judge, 1994; Jiang et al., 2012).”
Background
Convergence and emergence in organizations: An integrative framework and review
Fulmer, C. A., & Ostroff, C. L. (2015) · Journal of Organizational Behavior · doi:10.1002/job.1987 · Cited by 144
Self-citation
The future of HR management: Research needs and directions
Roehling, M. V., Boswell, W. R., Caligiuri, P., Feldman, D., Graham, M., Guthrie, J. P., Morishima, M., & Tansky, J. W. (2005) · Human Resource Management · doi:10.1002/hrm.20066 · Cited by 125
High‐Performance Work Systems in Professional Service Firms: Examining the Practices‐Resources‐Uses‐Performance Linkage
Fu, N., Flood, P. C., Bosak, J., Rousseau, D. M., Morris, T., & O’Regan, P. (2015) · Human Resource Management · doi:10.1002/hrm.21767 · Cited by 161
Diversity, Equity, and Inclusion in Artificial Intelligence: An Evaluation of Guidelines
Cachat-Rosset, G., & Klarsfeld, A. (2023) · Applied Artificial Intelligence · doi:10.1080/08839514.2023.2176618 · Cited by 138
“When widely perceived and interpreted by organizational incumbents, these messages create a strong climate (Bowen and Ostroff 2004), that would lead them to adopt the desired behaviors toward DEI.”
Background
The Effect of Strategic Human Resource and Knowledge Management on Sustainable Competitive Advantages at Jordanian Universities: The Mediating Role of Organizational Innovation
Alfawaire, F., & Atan, T. (2021) · Sustainability · doi:10.3390/su13158445 · Cited by 138
The consensus between Italian HR and sustainability managers on HR management for sustainability-driven change – towards a ‘strong' HR management system
Guerci, M., & Pedrini, M. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2013.860388 · Cited by 154
“Among the academics studying the relationship between the HR management system and organizational performance, Bowen and Ostroff (2004) proposed a model in which this relationship was mediated by the extent to which people’s views of situations converge.”
BackgroundInfluential
HRM and performance—The role of talent management as a transmission mechanism in an emerging market context
Glaister, A. J., Karaçay, G., Demirbağ, M., & Tatoğlu, E. (2017) · Human Resource Management Journal · doi:10.1111/1748-8583.12170 · Cited by 152
“…the creation of a suitable climate (Lepak et al., 2006, Heffernan et al., 2016, Lin et al., 2016), the development of similar cognitive maps (Bowen and Ostroff, 2004, Ostroff and Bowen, 2016), the level of human capital (Snell and Dean, 1992, McMahan et al., 1999), employee attitudes and…”
Performance management and teacher performance: the role of affective organizational commitment and exhaustion
Waeyenberg, T. V., Peccei, R., & Decramer, A. (2020) · The International Journal of Human Resource Management · doi:10.1080/09585192.2020.1754881 · Cited by 207
“This scale is based on Bowen and Ostroff (2004) conceptualization of HRM system strength as a higher-level construct, entailing experiences of distinctiveness, consistency and consensus and gained robust empirical support (Ostroff & Bowen, 2016).”
BackgroundMethodResultInfluential
When corporate social responsibility motivates employee citizenship behavior: The sensitizing role of task significance
Ong, M., Mayer, D. M., Tost, L. P., & Wellman, N. M. (2017) · Organizational Behavior and Human Decision Processes · doi:10.1016/j.obhdp.2017.09.006 · Cited by 146
“Research in organizational behavior and human resources (Bowen & Ostroff, 2004; Meyer, Tsui, & Hinings, 1993; Salancik & Pfeffer, 1978) suggests that consistency across multiple organizational cues plays an important role in determining employee behavior.”
Background
Linking people management and extra‐role behaviour: results of a longitudinal study
Knies, E., & Leisink, P. (2014) · Human Resource Management Journal · doi:10.1111/1748-8583.12023 · Cited by 135
Effect of Employees’ Perceived Green HRM on Their Workplace Green Behaviors in Oil and Mining Industries: Based on Cognitive-Affective System Theory
Chen, S., Jiang, W., Li, X., & Gao, H. (2021) · International Journal of Environmental Research and Public Health · doi:10.3390/ijerph18084056 · Cited by 161
“When an organization has a strong HRM system in place, employees may interpret and digest such a management style and in turn determine how they perceive such green values and their organization [36,51].”
Background
SHRM and product innovation: testing the moderating effects of organizational culture and structure in Chinese firms
Wei, L., Liu, J., & Herndon, N. C. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.538965 · Cited by 134
The performance effect of HRM and TQM: a study in Spanish organizations
Jiménez-Jiménez, D., & Martínez-Costa, M. (2009) · International Journal of Operations & Production Management · doi:10.1108/01443570911005992 · Cited by 134
Team Manager’s Implementation, High Performance Work Systems Intensity, and Performance: A Multilevel Investigation
Pak, J., & Kim, S. (2016) · Journal of Management · doi:10.1177/0149206316646829 · Cited by 146
“Bowen and Ostroff (2004) described a set of meta-features that constitute the strength of HRM systems.”
BackgroundResultInfluential
Quid pro quo? Examining talent management through the lens of psychological contracts
Höglund, M. (2012) · Personnel Review · doi:10.1108/00483481211199991 · Cited by 133
Navigating the shifting landscapes of HRM
Harney, B., & Collings, D. G. (2021) · Human Resource Management Review · doi:10.1016/j.hrmr.2021.100824 · Cited by 192
How perceptions of training impact employee performance
Guan, X., & Frenkel, S. (2019) · Person-centered review · doi:10.1108/pr-05-2017-0141 · Cited by 131
Arousing employee pro‐environmental behavior: A synergy effect of environmentally specific transformational leadership and green human resource management
Tu, Y., Li, Y., & Zuo, W. (2022) · Human Resource Management · doi:10.1002/hrm.22138 · Cited by 145
Do high performance work systems generate negative effects? How and when?
Han, J., Sun, J., & Wang, H.-L. (2019) · Human Resource Management Review · doi:10.1016/j.hrmr.2019.100699 · Cited by 169
Forging a Single-Edged Sword: Facilitating Positive Age and Disability Diversity Effects in the Workplace Through Leadership, Positive Climates, and HR Practices
Boehm, S. A., & Dwertmann, D. J. G. (2014) · Work Aging and Retirement · doi:10.1093/workar/wau008 · Cited by 171
Why individual employee engagement matters for team performance?: Mediating effects of employee commitment and organizational citizenship behaviour
Uddin, M. A., Mahmood, M., & Fan, L. (2019) · Team Performance Management: An International Journal · doi:10.1108/tpm-12-2017-0078 · Cited by 129
“Influence of individual-level behaviour could surpass individual-level performance to collective team and organizational-level performance or in the opposite direction (Bowen and Ostroff, 2004; Chan, 1998; Hobfall, 2001; Takeuchi, Chen and Lepak, 2009).”
Background
Using social exchange theory to predict the effects of high‐performance human resource practices on corporate entrepreneurship: Evidence from China
Zhang, Z., & Jia, M. (2010) · Human Resource Management · doi:10.1002/hrm.20378 · Cited by 121
Family friendly work practices, organizational climate, and firm performance: A study of multinational corporations in Hong Kong
Ngo, H., Foley, S. R., & Loi, R. (2009) · Journal of Organizational Behavior · doi:10.1002/job.606 · Cited by 129
“Bowen and Ostroff (2004) argued that a strong organizational climate affects how employees share a common interpretation of what behaviors are expected and rewarded, and hence a situation is created for better organizational performance.”
Background
How to identify leadership potential: Development and testing of a consensus model
Dries, N., & Pepermans, R. (2012) · Human Resource Management · doi:10.1002/hrm.21473 · Cited by 130
Impact of perceived corporate culture on organizational commitment
Ortega-Parra, A., & Sastre-Castillo, M. A. (2013) · Management Decision · doi:10.1108/md-08-2012-0599 · Cited by 127
Employee performance management culture and system features in higher education: relationship with employee performance management satisfaction
Decramer, A., Smolders, C., & Vanderstraeten, A. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2012.680602 · Cited by 127
“Because HRM practices communicate messages on what management expects, supports and rewards, higher education institutions and their management need to improve communication and prevent well-intended HRM practices from being misunderstood by employees (Bowen and Ostroff 2004).”
Background
HRM and strategic climates in hospitals: does the message come across at the ward level?
Veld, M., Paauwe, J., & Boselie, P. (2010) · Human Resource Management Journal · doi:10.1111/j.1748-8583.2010.00139.x · Cited by 127
“This might be due to differences in the implementation of HR practices and communication of relevant information towards employees (Bowen and Ostroff, 2004; Nishii and Wright, 2008).”
Background
The management of volunteers – what can human resources do? A review and research agenda
Alfes, K., Antunes, B., & Shantz, A. D. (2016) · The International Journal of Human Resource Management · doi:10.1080/09585192.2016.1242508 · Cited by 165
Job embeddedness in China: how HR practices impact turnover intentions
Bambacas, M., & Kulik, T. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2012.725074 · Cited by 126
Why Complementary HRM Practices Impact Performance: The Case of Rewards, Job Design, and Work Climate in a Knowledge‐Sharing Context
Foss, N. J., Pedersen, T., Reinholt, M., & Stea, D. (2014) · Human Resource Management · doi:10.1002/hrm.21649 · Cited by 138
Human resource management practices and affective organizational commitment: A comparison of Chinese employees in a state-owned enterprise and a joint venture:
Yu, B., & Egri, C. (2005) · doi:10.1177/1038411105058706 · Cited by 125
The link between e-HRM use and HRM effectiveness: an empirical study
Obeidat, S. M. (2016) · Personnel Review · doi:10.1108/pr-04-2015-0111 · Cited by 124
Impact of the strategic human resource management on organizational performance: evidence from Turkey
Gurbuz, S., & Mert, I. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.565669 · Cited by 124
Signaling in Secret: Pay for Performance and the Incentive and Sorting Effects of Pay Secrecy
Belogolovsky, E., & Bamberger, P. A. (2014) · Academy of Management Journal · doi:10.5465/amj.2012.0937 · Cited by 146
“They also reinforce the argument of Bowen and Ostroff (2004) regarding the beneficial effect of adopting human resources policies and practices that transmit unequivocal, consistent, and consensual signals to employees.”
Background
The effects of high performance human resource practices on service innovative behaviour.
Dhar, R. (2015) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2015.09.002 · Cited by 121
Linking employer branding orientation and firm performance: Testing a dual mediation route of recruitment efficiency and positive affective climate
Tumasjan, A., Kunze, F., Bruch, H., & Welpe, I. M. (2019) · Human Resource Management · doi:10.1002/hrm.21980 · Cited by 156

Authors: Bowen, D. E., & Ostroff, C.
Affiliations: Thunderbird, The American Graduate School of International Management
Columbia University (US)
ORCID: Bowen, David E.
Ostroff, Cheri
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
DOI: 10.5465/amr.2004.12736076
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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Understanding HRM–Firm Performance Linkages: The Role of the “Strength” of the HRM System

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