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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Background
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Chang, Y.-Y. (2016) · Journal of Organizational Change Management · doi:10.1108/jocm-09-2015-0150 · Cited by 43
The effect of management and employee perspectives of high-performance work systems on employees’ discretionary behaviour
Elorza, U., Harris, C. M., Aritzeta, A., & Balluerka, N. (2016) · Personnel Review · doi:10.1108/pr-07-2014-0167 · Cited by 45
Transformational Leadership and Employee Involvement: Perspectives from Millennial Workforce Entrants
Bodenhausen, C., & Curtis, C. R. (2016) · doi:10.1080/1528008x.2015.1048920 · Cited by 43
“Bowen and Ostroff (2004) note that there are varying practices for implementing EI; there is not one correct method.”
Background
Antecedents and outcomes of employee perceptions of intra‐organizational mobility channels
Webster, J. R., & Beehr, T. (2013) · Journal of Organizational Behavior · doi:10.1002/job.1823 · Cited by 43
“Informal messages through, for example, the results of a promotion decision, are more symbolic and convey or “signal” implicit information about the organization and the employee (Bowen & Ostroff, 2004 ; Connelly et al., 2011 ; Guzzo & Noonan, 1994 ).”
Linking perceptions of training with organizational commitment: The moderating role of self-construals
Yang, H.-D., Sanders, K., & Bumatay, C. P. (2012) · European Journal of Work and Organizational Psychology · doi:10.1080/1359432x.2010.546948 · Cited by 43
“Over the last decade, research in the field of HRM has shifted its focus from identifying the effective characteristics of HR policies and practices to investigating how HR policies and practises stimulate organizational effectiveness (Bowen & Ostroff, 2004).”
Background
DO SMEs BENEFIT FROM HRM-RELATED KNOWLEDGE PROTECTION IN INNOVATION MANAGEMENT?
Olander, H., Hurmelinna-Laukkanen, P., & Heilmann, P. (2011) · doi:10.1142/s1363919611003453 · Cited by 43
The impact of aesthetics on employee satisfaction and motivation
Bjerke, R., Ind, N., & Paoli, D. D. (2007) · doi:10.1108/14502190710749956 · Cited by 43
Organizational knowledge and collaborative human resource practices as determinants of innovation
Nieves, J., Quintana, A., & Osorio, J. (2016) · Knowledge Management Research & Practice · doi:10.1057/kmrp.2014.26 · Cited by 42
“Therefore, human resource management (HRM) practices will play a key role by helping to attain desired organizational outcomes through their possible influence on employee abilities and behaviour (Bowen & Ostroff, 2004).”
Background
The Digitalization of Human Resource Management: Present and Future
Zavyalova, E. K., Sokolov, D., Kucherov, D., & Lisovskaia, A. Y. (2022) · Foresight-Russia · doi:10.17323/2500-2597.2022.2.42.51 · Cited by 49
Success or growth? Distinctive roles of extrinsic and intrinsic career goals in high-performance work systems, job crafting, and job performance
Wang, L., & Chen, Y. (2022) · Journal of Vocational Behavior · doi:10.1016/j.jvb.2022.103714 · Cited by 56
Employees’ perceptions of human resource management practices and employee outcomes
Li, S., Rees, C., & Branine, M. (2019) · Employee Relations: The International Journal · doi:10.1108/er-01-2019-0065 · Cited by 42
Employee involvement, public service motivation, and perceived organizational performance: testing a new model
Qi, F., & Wang, W. (2018) · International Review of Administrative Sciences · doi:10.1177/0020852316662531 · Cited by 42
“Another group of researchers developed the motivational model, which argued that HIWSs empower employees and motivate them to work harder (Bowen and Ostroff, 2004).”
Background
Why Investing in Diversity Management Matters: Organizational Attraction and Person–Organization Fit
Madera, J. M., Dawson, M., & Neal, J. A. (2016) · Journal of Hospitality & Tourism Research · doi:10.1177/1096348016654973 · Cited by 62
“Organization values shape human resource management (HRM) practices (in this case diversity practices), which in turn reinforce cultural norms and performance (Bowen & Ostroff, 2004).”
Background
Line managers and HRM : A managerial discretion perspective
López‐Cotarelo, J. (2018) · Human Resource Management Journal · doi:10.1111/1748-8583.12176 · Cited by 54
“…actions “form and fulfil” employees’ psychological contracts (McDermott et al., 2013), while, at the group and organisational levels, consistency in the implementation of HRM systems underpins their ‘strength’ in creating organisational climates for performance behaviours (Bowen and Ostroff, 2004).”
Background
What Makes Firms Innovative? The Role of Social Capital in Corporate Innovation
Ahn, S.-Y., & Kim, S.-H. (2017) · Sustainability · doi:10.3390/su9091564 · Cited by 42
The individual and organizational level effects of TQM practices on job satisfaction
Prajogo, D., & Cooper, B. (2017) · International Journal of Manpower · doi:10.1108/ijm-12-2014-0240 · Cited by 42
The seasons of the psychological contract: Overcoming the silent transformations of the employer–employee relationship
Persson, S., & Wasieleski, D. M. (2015) · Human Resource Management Review · doi:10.1016/j.hrmr.2015.02.003 · Cited by 42
“Go beyond the usual dichotomy between the individual or collective levels (with trade unions) – Incorporate the “strength” of the HRM system (Bowen & Ostroff, 2004) by linking “strength” (from the Western thought) and “potential of the situation” (from the Chinese thought) – Revise the construct of…”
Background
Share capitalism and worker wellbeing,
Bryson, A., Clark, A., Freeman, R., & Green, C. P. (2015) · Labour Economics · doi:10.1016/j.labeco.2016.09.002 · Cited by 42
Linking HRM competency to firm performance: an empirical investigation of Chinese firms
Ngo, H., Jiang, C., & Loi, R. (2014) · Personnel Review · doi:10.1108/pr-05-2013-0086 · Cited by 42
High performance human resource practices and organizational performance: The mediating role of occupational safety and health
Chan, S., & Mak, W.-M. (2012) · Journal of Chinese Human Resource Management · doi:10.1108/20408001211279238 · Cited by 42
“Introduction Human resource management (HRM) functions have long been a central focus regarding its contributions to organizational performance (Arthur, 1994; Bowen and Ostroff, 2004; Boxall and Macky, 2007; Snape and Redman, 2010; Sun et al., 2007).”
Background
The role of training in the development of human resource management in Australian organisations
Smith, A. J., & Smith, E. (2007) · Human Resource Development International · doi:10.1080/13678860701515208 · Cited by 28
“The concept of ‘‘bundling’’ has defied strict definition but finds its roots in the concept of internal fit developed in the strategic human resource management literature (Bowen and Ostroff, 2004).”
Background
What's in a name? talent: A review and research agenda
Vardi, S., & Collings, D. (2023) · Human Resource Management Journal · doi:10.1111/1748-8583.12500 · Cited by 41
Positive psychology and human resource management: Building an HR architecture to support human flourishing
Gruman, J. A., & Budworth, M.-H. E. (2022) · Human Resource Management Review · doi:10.1016/j.hrmr.2022.100911 · Cited by 52
Inclusive leadership and team creativity: a moderated mediation model of Chinese talent management
Jia, J.-F., Jiao, Y., & Han, H.-M. (2021) · International journal of human resources management · doi:10.1080/09585192.2021.1966073 · Cited by 41
“Accordingly, Bowen and Ostroff (2004) propose that HRM system strength refers to a series of meta-features of HRM that affect the efficiency of delivering HRM information and lead to a strong climate.”
BackgroundMethodInfluential
Employer Branding and Organisational Citizenship Behaviour: The Mediating Role of Job Satisfaction
Kaur, P., Malhotra, K., & Sharma, S. (2020) · Asia-Pacific Journal of Management Research and Innovation · doi:10.1177/2319510x20931716 · Cited by 41
Employee stock ownership and financial performance in European countries: The moderating effects of uncertainty avoidance and social trust
Kang, S., & Kim, A. (2018) · Human Resource Management · doi:10.1002/hrm.21942 · Cited by 41
“As financial performance is a distal outcome, however, there has been a growing consensus that employment practices drive the distal performance of firms through intermediate outcomes, such as employee attitudes and behaviors (Bowen & Ostroff, 2004; Dyer & Reeve, 1995; Guest, 1997).”
Background
How do department high-performance work systems affect creative performance? a cross-level approach
He, C.-Q., Gu, J.-B., & Liu, H.-F. (2018) · Asia Pacific Journal of Human Resources · doi:10.1111/1744-7941.12156 · Cited by 41
Does Pay‐for‐Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee Turnover
Pohler, D. M., & Schmidt, J. A. (2015) · Personnel Psychology · doi:10.1111/peps.12106 · Cited by 68
Health-care quality management using the MBHCP excellence model
Lee, S. M., Lee, D., & Olson, D. (2013) · doi:10.1080/14783363.2012.728853 · Cited by 41
“Workforce has been recognised as a critical factor which influences OP (Delaney & Huselid, 1996; Bowen & Ostroff, 2004).”
Background
The determinants of line management internalisation of HRM practices in MNC subsidiaries
Björkman, I., Ehrnrooth, M., Smale, A., & John, S. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.565652 · Cited by 45
Foreword: linking HRM and performance - a never-ending search?
Marchington, M., & Zagelmeyer, S. (2005) · doi:10.1111/j.1748-8583.2005.tb00292.x · Cited by 41
Similarities and differences in international and comparative human resource management: A review of 60 years of research
Sanders, K., & De Cieri, H. (2021) · Human Resource Management · doi:10.1002/hrm.22028 · Cited by 41
The impact of discretionary HR practices on knowledge sharing and intention to quit – a three-wave study on the role of career satisfaction, organizational identification, and work engagement
Kundi, Y. M., Baruch, Y., & Ullah, R. (2023) · The International Journal of Human Resource Management · doi:10.1080/09585192.2023.2180652 · Cited by 45
“…research suggests that it is not the HR practices that affect employees’ attitudes or behaviors; rather, it is how they perceive these practices (Bowen & Ostroff, 2004) which, in turn, determines their attitudes and behavior and subsequent performance outcomes (Cooper et al., 2019; Shih et…”
Background
When employees and supervisors (do not) see eye to eye on family supportive supervisor behaviours: The role of segmentation desire and work-family culture
Marescaux, E., Rofcanın, Y., Heras, M. L., Ilieș, R., & Bosch, M. J. (2020) · Journal of Vocational Behavior · doi:10.1016/j.jvb.2020.103471 · Cited by 57
Important issues in human resource management: introduction to the 2020 review issue
Cooke, F., Dickmann, M., & Parry, E. (2020) · The International Journal of Human Resource Management · doi:10.1080/09585192.2020.1691353 · Cited by 40
Role of Green HRM Practices in Employees’ Pro-environmental IT Practices
Ojo, A. O., & Raman, M. (2019) · Advances in intelligent systems and computing · doi:10.1007/978-3-030-16181-1_64 · Cited by 67
Do high-performance human resource practices work? The mediating role of organizational learning capability
Gómez, P. J., Lorente, J. J. C., & Pérez‐Valls, M. (2017) · Journal of Management & Organization · doi:10.1017/jmo.2017.55 · Cited by 38
Beyond the mean: Understanding firm‐level consequences of variability in diversity climate perceptions
Reinwald, M., Huettermann, H., & Bruch, H. (2018) · Journal of Organizational Behavior · doi:10.1002/job.2344 · Cited by 46
High performance work practice implementation and employee impressions of line manager leadership
Russell, Z. A., Steffensen, D. S., Ellen, B. P., Zhang, L., Bishoff, J. D., & Ferris, G. R. (2018) · Human Resource Management Review · doi:10.1016/j.hrmr.2018.02.003 · Cited by 57
Idiosyncratic Deals to Employee Outcomes: Mediating Role of Social Exchange Relationships
Singh, S., Kaur, G. K., & Vidyarthi, P. (2017) · Journal of Leadership & Organizational Studies · doi:10.1177/1548051818762338 · Cited by 40
Job demands, job control, psychological climate, and job satisfaction
Karanika‐Murray, M., Michaelides, G., & Wood, S. (2017) · Journal of Organizational Effectiveness People and Performance · doi:10.1108/joepp-02-2017-0012 · Cited by 51
The role of knowledge sharing culture in business performance
Marouf, L. N. (2016) · VINE Journal of Information and Knowledge Management Systems · doi:10.1108/vjikms-10-2014-0061 · Cited by 32
The role of hospitals' HRM in shaping clinical performance: a holistic approach
Townsend, K., Lawrence, S. A., & Wilkinson, A. J. (2013) · The International Journal of Human Resource Management · doi:10.1080/09585192.2013.775028 · Cited by 41
“The first is that often, rather than assessing the effective functioning of implemented processes, researchers assess the presence of documented policy and practices and use this as a proxy for process implementation within an organisation (Bowen and Ostroff 2004).”
Background
Silencing Quiet Quitting: Crafting a Symphony of High‐Performance Work Systems and Psychological Conditions
Agarwal, P., Kaur, P., & Budhwar, P. S. (2024) · Human Resource Management · doi:10.1002/hrm.22275 · Cited by 52
Extending the Technology Acceptance Model: A New Perspective on the Adoption of Blockchain Technology
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“Strategies focusing on human resource management drawn from the RBV may also lead to competitive advantages such as high investment in employee skill and capability development toward speci ﬁ c behaviors [32].”
Background
Influence of strategic HRM and entrepreneurial orientation on dynamic capabilities and innovation in small- and medium-sized enterprises
Ho, M. W. Y., Soo, C. W., Tian, A. W., & Teo, S. (2023) · International Small Business Journal Researching Entrepreneurship · doi:10.1177/02662426231201761 · Cited by 46
“…because the strength of SHRM initiative on dynamic capabilities relies on how well EO as a strategic resource creates a culture that tolerates change, including motivating and developing their employees to support the SME’s strategic objectives (Bowen and Ostroff, 2004; Dello Russo et al., 2018).”

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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