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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Buengeler, C., & den Hartog, D. D. (2015) · The International Journal of Human Resource Management · doi:10.1080/09585192.2014.991345 · Cited by 52
“If communication is provided consistently, managers may be able to create ‘strong situations’ that help engender uniformly favorable behaviors of employees (Bowen & Ostroff, 2004).”
Background
The Relationships of Informal High Performance Work Practices to Job Satisfaction and Workplace Profitability
Yanadori, Y., & van Jaarsveld, D. D. (2014) · Industrial Relations A Journal of Economy and Society · doi:10.1111/irel.12066 · Cited by 48
High-Performance Work Systems and Organizational Performance in Emerging Economies: Evidence from MNEs in Turkey
Demirbağ, M., Collings, D. G., Tatoğlu, E., Mellahi, K., & Wood, G. (2014) · Management International Review · doi:10.1007/s11575-014-0204-9 · Cited by 52
“The nature and extent of linkages between human resource management (HRM) practices and performance has become a key concern in international business and management studies over the past two decades (Bowen and Ostroff 2004; Boxall, 2013; Guest 1997; Guest 2011; Guthrie 2001; Marescaux et al. 2013; Monks et al. 2013;…”
Background
An experimental investigation of turnover intentions among new entrants in it
Agarwal, R., Ferratt, T., & De, P. (2007) · DATB · doi:10.1145/1216218.1216222 · Cited by 51
“Future research in this area could extend prior work on strong situations and individual differences that matter (Bowen & Ostroff, 2004; Mischel, 1977; 1997).”
Using Personality Traits to Select Customer-Oriented Logistics Personnel
Periatt, J., Chakrabarty, S., & LeMay, S. (2007) · Transportation journal · doi:10.5325/transportationj.46.1.0022 · Cited by 51
Innovation strategy, voice practices, employee voice participation, and organizational innovation
Shin, D., Woodwark, M., Konrad, A., & Jung, Y. (2022) · Journal of business research · doi:10.1016/j.jbusres.2022.04.015 · Cited by 51
Sparking creativity using extrinsic rewards: A self‐determination theory perspective
Lin, C.-H. V., Shipton, H. J., Teng, W., Kitt, A., Do, H., & Chadwick, C. (2022) · Human Resource Management · doi:10.1002/hrm.22128 · Cited by 48
Skills-based volunteering: A systematic literature review of the intersection of skills and employee volunteering
Dempsey-Brench, K., & Shantz, A. D. (2021) · Human Resource Management Review · doi:10.1016/j.hrmr.2021.100874 · Cited by 87
The influence of human resource practices on perceived work ability and the preferred retirement age: A latent growth modelling approach
Pak, K., Kooij, D. T. A. M., de Lange, A. D., Heuvel, S., & van Veldhoven, M. (2020) · Human Resource Management Journal · doi:10.1111/1748-8583.12304 · Cited by 50
“As the HR practices are bundled according to these employee goals, we argue that employees will use HR practices that fit their goals (Bowen & Ostroff, 2004; Wright & Nishii, 2013).”
The Role of employees’ perceptions of HPWS in the HPWS-performance relationship: A multilevel perspective
Xi, M., Chen, Y., & Zhao, S. (2019) · Asia Pacific Journal of Management · doi:10.1007/s10490-019-09694-w · Cited by 55
“When CEOs hold employee-centered values and exhibit benevolent leadership behaviors that are consistent with the messages sent from firm HPWS, it helps foster agreement among employees regarding how they are managed by the organization (Bowen & Ostroff, 2004).”
BackgroundMethodResultInfluential
How Does a Reward for Creativity Program Benefit or Frustrate Employee Creative Performance? The Perspective of Transactional Model of Stress and Coping
Li, F., Chen, T., & Lai, X. (2017) · Group & Organization Management · doi:10.1177/1059601116688612 · Cited by 62
“In doing so, we address the calls of Byron and Khazanchi (2012) and Zhou and Shalley (2003). Our results show that employees who appraise a reward for creativity program as a threat engage in blaming, and creativity suffers, thus supporting the contention of social-cognitive researchers that creativity-contingent rewa…”
Background
When health care workers perceive high-commitment HRM will they be motivated to continue working in health care? It may depend on their supervisor and intrinsic motivation
Schopman, L. M., Kalshoven, K., & Boon, C. T. (2015) · The International Journal of Human Resource Management · doi:10.1080/09585192.2015.1109534 · Cited by 63
A transformative service research agenda: a study of workers’ well-being
Edgar, F., Geare, A., Saunders, D., Beacker, M., & Faanunu, I. (2017) · Service Industries Journal · doi:10.1080/02642069.2017.1290797 · Cited by 57
“Perceptions about the underpinning motivations for employment practices are surprisingly important (Bowen & Ostroff, 2004).”
Background
Sabotaging the benefits of our own human capital: Work unit characteristics and sleep.
Barnes, C. M., Jiang, K., & Lepak, D. P. (2015) · Journal of Applied Psychology · doi:10.1037/apl0000042 · Cited by 62
High-Performance Work Systems and Proactive Behavior: The Mediating Role of Psychological Empowerment
Arefin, M. S., Arif, I., & Raquib, M. (2015) · International Journal of Business and Management · doi:10.5539/ijbm.v10n3p132 · Cited by 45
“However, research reveals that the intended HPWS are different from employee perceived HPWS (Bowen & Ostroff, 2004).”
Background
An integrative model for competency development in organizations: the Flemish case
Vos, A. D., de Hauw, S., & Willemse, I. (2015) · The International Journal of Human Resource Management · doi:10.1080/09585192.2014.1003078 · Cited by 50
Team staffing modes in organizations: Strategic considerations on individual and cluster hiring approaches
Munyon, T. P., Summers, J. K., & Ferris, G. R. (2010) · Human Resource Management Review · doi:10.1016/j.hrmr.2010.07.002 · Cited by 71
Social capital of the HR department, HR's change agent role, and HR effectiveness: evidence from South Korean firms
Kim, S., & Ryu, S. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.565649 · Cited by 50
“Building on the attribution theory (Kelley 1973), the HR strength theory suggests that HR services are effective when they encourage employees to develop unified collective interpretations regarding HR practices by sending messages that are (1) distinctive, (2) consistent, and (3) consensual (Bowen and Ostroff 2004).”
BackgroundMethodInfluential
The line makes the difference: line managers as effective HRM partners
Bos-Nehles, A. C. (2024) · doi:10.3990/1.9789085705130 · Cited by 40
“…HR role effectively (Bond & Wise, 2003; Gennard & Kelly, 1997; McConville & Holden, 1999; Whittaker & Marchington, 2003); and (5) they require clear policies & procedures concerning their HR responsibilities and how to apply them (Bowen & Ostroff, 2004; Brewster & Larsen, 2000; McConville, 2006).”
Background
What makes employees more proactive? Roles of job embeddedness, the perceived strength of the HRM system and empowering leadership
Jia, J.-F., Yan, J.-Q., Jahanshahi, A., Lin, W.-P., & Bhattacharjee, A. (2019) · Asia Pacific Journal of Human Resources · doi:10.1111/1744-7941.12249 · Cited by 50
Toward a non‐organizational theory of human resource management? A complex adaptive systems perspective on the human resource management ecosystem in (con)temporary organizing
Burke, C. M., & MORLEY, M. J. (2022) · Human Resource Management · doi:10.1002/hrm.22132 · Cited by 66
Refugee recruitment and workplace integration: An opportunity for human resource management scholarship and impact
Hirst, G., Curtis, S., Nielsen, I., Smyth, R., Newman, A., & Ning, X. (2021) · Human Resource Management Journal · doi:10.1111/1748-8583.12349 · Cited by 49
Control mechanisms, management orientations, and the creativity of service employees: Symmetric and asymmetric modeling
Coelho, F., Evanschitzky, H., Sousa, C. M. P., Olya, H., & Taheri, B. (2020) · Journal of Business Research · doi:10.1016/j.jbusres.2020.10.055 · Cited by 51
Strategic Diversity Leadership: The Role of Senior Leaders in Delivering the Diversity Dividend
Martins, L. L. (2020) · Journal of Management · doi:10.1177/0149206320939641 · Cited by 84
“Prior diversity research has found that diversity management practices (e.g., Bowen & Ostroff, 2004) and the presence of diversity in top management ranks (e.g., Ely, 1994) convey signals of the value of diversity and are used as such by organizations in stakeholder communications (e.g., Martins &…”
Background
Going beyond national cultures – Dynamic interaction between intra-national, regional, and organizational realities
Sasaki, I., & Yoshikawa, K. (2013) · Journal of World Business · doi:10.1016/j.jwb.2013.10.005 · Cited by 45
Do Human Resource Management Practices Inspire Employees’ Retention?
Hussain, T., & Rehman, S. S. U. (2013) · Research Journal of Applied Sciences Engineering and Technology · doi:10.19026/rjaset.6.3569 · Cited by 49
Franchised and Small, the Most Beautiful of All; HRM and Performance in Plural Systems
Brand, M., & Croonen, E. P. M. (2010) · Journal of Small Business Management · doi:10.1111/j.1540-627x.2010.00310.x · Cited by 49
“research on the relationship between HRM and performance mainly uses one of two approaches (Becker and Huselid 1998; Bowen and Ostroff 2004).”
BackgroundMethodInfluential
Gainsharing and knowledge sharing: the effects of labour–management co-operation
Arthur, J., & Kim, D.-O. (2005) · The International Journal of Human Resource Management · doi:10.1080/09585190500239077 · Cited by 49
A Multilevel Application of Learning and Performance Orientations to Individual, Group, and Organizational Outcomes
Gully, S. M., & Phillips, J. M. (2005) · Research in personnel and human resources management · doi:10.1016/s0742-7301(05)24001-x · Cited by 50
Top management: the missing stakeholder in the HRM literature
Boada-Cuerva, M., Trullen, J., & Valverde, M. (2019) · The International Journal of Human Resource Management · doi:10.1080/09585192.2018.1479878 · Cited by 49
Strategic human resource management in the context of environmental crises: A COVID‐19 test
Minbaeva, D. B., & Navrbjerg, S. E. (2023) · Human Resource Management · doi:10.1002/hrm.22162 · Cited by 48
“” The crisis demonstrated that the content of the HRM processes and practices was likely less important than the mechanisms through which that content was communicated to employees (Bowen & Ostroff, 2004, 2016).”
Background
Collectivism-oriented human resource management on team creativity: effects of interpersonal harmony and human resource management strength
Chen, S.-L., Fan, Y., Zhang, G.-L., & Zhang, Y. (2019) · International journal of human resources management · doi:10.1080/09585192.2019.1640765 · Cited by 48
“Finally, we followed Bowen and Ostroff (2004) by examining HRM strength and its moderating effect on the CHRM–team creativity relationship to determine whether it influences the HR function and if so, how.”
Method
Competing institutional logics in talent management: talent identification at the HQ and a subsidiary
Tyskbo, D. (2019) · The International Journal of Human Resource Management · doi:10.1080/09585192.2019.1579248 · Cited by 71
“This dominance of unitarist and economic logic exaggerates the instrumentality and predictability of rational action on the part of the actors (Bowen & Ostroff, 2004; Delbridge & Keenoy, 2010; Keegan & Boselie, 2006) and underestimates the local institutional environment and the social…”
Background
Paradoxical leadership incongruence and Chinese individuals’ followership behaviors: moderation effects of hierarchical culture and perceived strength of human resource management system
Jia, J.-F., Yan, J.-Q., Cai, Y.-H., & Liu, Y.-P. (2018) · Asian Business & Management · doi:10.1057/s41291-018-0043-9 · Cited by 48
“These meta-features comprise distinctiveness, consistency, and consensus (Bowen and Ostroff 2004).”
BackgroundInfluential
How and when service-oriented high-performance work systems foster employee service performance
Wang, Z., & Xu, H. (2017) · Employee Relations · doi:10.1108/er-07-2016-0140 · Cited by 51
The impact of work-life culture on organizational productivity
de Sivatte, I., Gordon, J. R., Rojo, P., & Olmos, R. (2015) · Personnel Review · doi:10.1108/pr-12-2013-0226 · Cited by 59
A three-step design science approach to develop a novel human resource-planning framework in projects: the cases of construction projects in USA, Europe, and Iran
Pournader, M., Tabassi, A. A., & Baloh, P. (2014) · International Journal of Project Management · doi:10.1016/j.ijproman.2014.06.009 · Cited by 51
“HRM practices in organizations could be defined as plans involved in eliminating HR-related issues in such processes including recruiting, screening, training, rewarding, and appraising the performance of HRs within organizations (Bowen and Ostroff, 2004; Dessler, 2012; Huselid, 1995).”
Background
Translating corporate social performance into financial performance: exploring the moderating role of high-performance work practices
Chang, Y., Oh, W.-Y., & Messersmith, J. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2013.778312 · Cited by 48
“Moreover, these practices are also recognized as having a strong influence on the collective perceptions of employees within the firm (Bowen and Ostroff 2004).”
Background
An international perspective on human resource management and performance in the health care sector: toward a research agenda
Bartram, T., & Dowling, P. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2013.775024 · Cited by 48
“…middle management, line management, clinicians and other hospital workers) and the contribution of HRM to the achievement of organizational goals and improved individual and hospital performance (Bowen and Ostroff 2004; Nishii, Lepak and Schneider 2008; Stanton et al. 2010; Gollan 2012).”
Background
HRM outsourcing: the impact of organisational size and HRM strategic involvement
Sheehan, C., & Cooper, B. (2011) · Personnel Review · doi:10.1108/00483481111169661 · Cited by 48
Revisiting Behavioral Integrity: Progress and New Directions After 20 Years
Simons, T. L., Leroy, H., & Nishii, L. H. (2021) · Annual Review of Organizational Psychology and Organizational Behavior · doi:10.1146/annurev-orgpsych-012420-062016 · Cited by 52
Do high-performance work systems always help to retain employees or is there a dark side?
Behravesh, E., Tanova, C., & Abubakar, A. (2020) · Service Industries Journal · doi:10.1080/02642069.2019.1572748 · Cited by 47
“Bowen and Ostroff (2004) developed a framework for having a better understanding of HRM practices as a system that supports firm performance by enhancing the motivation among the employees to adopt preferred attitudes and behaviors in order to achieve strategic goals of the organization.”
Background
Closing the gap between scholarly knowledge and practice: Guidelines for HRM action research
Bleijenbergh, I. L., van Mierlo, J., & Bondarouk, T. V. (2020) · Human Resource Management Review · doi:10.1016/j.hrmr.2020.100764 · Cited by 56
HR systems, attachment styles with leaders, and the creativity–innovation nexus
Černe, M., Batistič, S., & Kenda, R. (2018) · Human Resource Management Review · doi:10.1016/j.hrmr.2018.02.004 · Cited by 51
Climate and organizational performance in long‐term care facilities: The role of affective commitment
Woznyj, H. M., Heggestad, E. D., Kennerly, S. M., & Yap, T. L. (2018) · Journal of Occupational and Organizational Psychology · doi:10.1111/joop.12235 · Cited by 67
Hospitality service climate, employee service orientation, career aspiration and performance: A moderated mediation model
Li, Y., & Huang, S. S. (2017) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2017.07.012 · Cited by 57
‘The mission or the margin?’ A high-performance work system in a non-profit organisation
Kellner, A., Townsend, K., & Wilkinson, A. J. (2016) · The International Journal of Human Resource Management · doi:10.1080/09585192.2015.1129636 · Cited by 90

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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