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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“Various researchers have found a positive association between human capital and firm performance (Andreeva & Garanina, 2016; Becker & Huselid, 2006; Bowen & Ostroff, 2004; Cisneros & Hernandez-Perlines, 2018; Crema & Verbano, 2016; Delgado-Verde et al., 2016; Ghosh & Mondal, 2009; Goh, 2005; X. L.…”
Background
The influence of calculative (“hard”) and collaborative (“soft”) HRM on the layoff‐performance relationship in high performance workplaces
Cregan, C., Kulik, C. T., Johnston, S., & Bartram, T. (2020) · Human Resource Management Journal · doi:10.1111/1748-8583.12291 · Cited by 36
Train to retain: Training opportunities, positive reciprocity, and expected retirement age
de Grip, A., Fouarge, D., Montizaan, R., & Schreurs, B. (2020) · Journal of Vocational Behavior · doi:10.1016/j.jvb.2019.103332 · Cited by 36
How, Why, and When High-Involvement Work Systems Are Related to OCB: A Multilevel Examination of the Mediating Role of POS and of the Moderating Role of Organizational Structures
Tremblay, M. (2017) · Group & Organization Management · doi:10.1177/1059601117736684 · Cited by 39
Managerial Quality and Productivity Dynamics
Adhvaryu, A., Nyshadham, A., & Tamayo, J. (2019) · The Review of Economic Studies · doi:10.3386/w25852 · Cited by 36
“…body of work focus on single practices, or narrowly defined sets of practices, and relate these practices to productivity in an unstructured manner (Bowen and Ostroff, 2004; Cappelli and Neumark, 2001; Collins and Clark, 2003; Collins and Smith, 2006; Combs et al., 2006; Delaney and Huselid, 1996;…”
Background
Employee involvement climate, task and citizenship performance, and instability as a moderator
Smith, M. B., Wallace, J. C., Vandenberg, R., & Mondore, S. P. (2018) · The International Journal of Human Resource Management · doi:10.1080/09585192.2016.1184175 · Cited by 36
“Thus, Bowen and Ostroff (2004) suggest that the immediate manager serves as a referent for group climates.”
BackgroundInfluential
Where hukou status matters: analyzing the linkage between supervisor perceptions of HR practices and employee work engagement
Li, X.-B., & Frenkel, S. (2017) · The International Journal of Human Resource Management · doi:10.1080/09585192.2015.1137613 · Cited by 36
The relationship between employee performance management and civil servants’ turnover intentions: a test of the mediating roles of system satisfaction and affective commitment
Waeyenberg, T. V., Decramer, A., Desmidt, S., & Audenaert, M. (2017) · Public Management Review · doi:10.1080/14719037.2016.1209230 · Cited by 36
“…support that the internal consistency is essential for establishing an effective EPM system (Aguinis 2013; Aguinis and Pierce 2008; Armstrong and Baron 2005) and consider it as a key element of so-called strong HRM systems that result in favourable organizational outcomes (Bowen and Ostroff 2004).”
BackgroundMethodResultInfluential
How Does Supervisor Support Influence Turnover Intent Among Frontline Hospital Workers? The Mediating Role of Affective Commitment
Nichols, H., Swanberg, J. E., & Bright, C. (2016) · Health Care Supervisor · doi:10.1097/hcm.0000000000000119 · Cited by 36
“Indeed, frontline supervisors now have primary responsibility for implementing human resource policies in many companies,(72) policies that can impact employee behaviors.(73,74) This is largely due to a reduction in middle and upper management roles and the subsequent flattening of organizational hierarchy, but this p…”
Background
Are Unions Good or Bad for Organizations? The Moderating Role of Management's Response
Pohler, D., & Luchak, A. A. (2015) · British Journal of Industrial Relations · doi:10.1111/bjir.12042 · Cited by 36
“In combination with research on situational strength (Bowen and Ostroff 2004; Mischel 1973, 1977), we argue that the stronger the union, the greater its ability to shape a strong and consistent message (Luchak and Pohler 2010) of competition or co-operation among its membership base.”
Promoting teacher's professional development
Runhaar, P. R. (2008) · doi:10.3990/1.9789036527514 · Cited by 37
Service-oriented high-performance work systems and service role performance: Applying an integrated extended self and psychological ownership framework
Jo, H., Aryee, S., Hsiung, H.-H., & Guest, D. (2021) · Human Relations · doi:10.1177/00187267211035656 · Cited by 36
“As Bowen and Ostroff (2004) noted, HR systems constitute communication mechanisms in that they signal important messages about organizational values.”
BackgroundInfluential
The interacting content and process of the employer brand: person-organization fit and employer brand clarity
Ghielen, S. T. S., Cooman, R. D., & Sels, L. (2020) · European Journal of Work and Organizational Psychology · doi:10.1080/1359432x.2020.1761445 · Cited by 46
Friend or foe? The impact of high‐performance work practices on workplace bullying
Salin, D., & Notelaers, G. (2020) · Human Resource Management Journal · doi:10.1111/1748-8583.12281 · Cited by 47
“The importance of consistency also aligns with that of HR system strength, as HR systems have been argued to have most impact if all practices send consistent signals about the organization’s underlying intentions (Bowen & Ostroff, 2004).”
Analytical strategies in HRM systems research: a comparative analysis and some recommendations
Hauff, S. (2019) · International journal of human resources management · doi:10.1080/09585192.2018.1547779 · Cited by 35
“Importantly, I focus on HRM systems’ content instead of the processes through which HRM’s effects evolve (for a discussion of the differences, see e.g. Bowen & Ostroff, 2004; Wright & Nishii, 2013).”
Background
A multifoci approach to study social support and job performance: A target similarity consideration of development-enhancing practices, leadership, and structure
Tremblay, M., & Simard, G. (2018) · Journal of Business Research · doi:10.1016/j.jbusres.2018.07.002 · Cited by 43
Human capital resources: a call to retire settled debates and to start a few new debates
Nyberg, A. J., Reilly, G., Essman, S., & Rodrigues, J. (2018) · doi:10.1080/09585192.2017.1381138 · Cited by 35
How does human resource investment in internal control affect audit reporting lag?
Shin, I.-H., Lee, H.-Y., Lee, H.-A., & Son, M. (2017) · Asia-Pacific Journal of Accounting & Economics · doi:10.1080/16081625.2015.1135751 · Cited by 40
“This result can also add to the literature of human resource strategic management that provides consistent evidence that investments in human resources can yield positive organizational-level outcomes (e.g. Bowen and Ostroff 2004; Becker and Huselid 2006; Crook et al. 2011).”
Result
Leader–member exchange, affective commitment, engagement, wellbeing, and intention to leave: public versus private sector Italian nurses
Trinchero, E., Borgonovi, E., & Farr-Wharton, B. (2014) · doi:10.1080/09540962.2014.962361 · Cited by 35
“Supervisor support contributes to enhanced employee engagement (Wright et al., 2001; Bowen and Ostroff, 2004).”
BackgroundResult
Contingency, fit and flexibility of HRM in nonprofit organizations
Akingbola, K. (2013) · doi:10.1108/er-01-2012-0009 · Cited by 35
The Effects of Perceived External Prestige on Positive Psychological States in Quick Service Restaurants
Mathe, K., & Scott-Halsell, S. (2012) · Journal of Human Resources in Hospitality & Tourism · doi:10.1080/15332845.2012.690684 · Cited by 35
“The use of CO as a moderator variable is warranted in this study because the “alignment or congruence between individuals’ and managers’ goals has been shown to have important consequences for both individual attitudes or behaviors” (Bowen & Ostroff, 2004, p.204).”
Feminisation of the medical profession: a strategic HRM dilemma? The effects of family-friendly HR practices on female doctors' contracted working hours
Pas, B., Peters, P., Doorewaard, H., Eisinga, R., & Lagro-Janssen, T. (2011) · doi:10.1111/j.1748-8583.2010.00161.x · Cited by 35
The devolution of HRM to middle managers in the Irish health service
Conway, E., & Monks, K. (2010) · doi:10.1108/00483481011030548 · Cited by 35
“The findings add to the debate on the importance of context and climate in understanding both HR processes and middle management roles (Paauwe, 2004; Marchington et al., 1994; Bowen and Ostroff, 2004; Dopson and Stewart, 1993; Currie, 2000).”
Background
Consensus on the leadership of hospital CEOs and its impact on the participation of physicians in improvement projects.
Dückers, M., Stegeman, I., Spreeuwenberg, P., Wagner, C., Sanders, K., & Groenewegen, P. (2009) · Health Policy · doi:10.1016/j.healthpol.2009.01.003 · Cited by 35
High-performance work systems in job demands-resources theory: Implications for employee burnout and quality of life
Afonso, D. D., & Romero‐Domínguez, L. (2024) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2024.104066 · Cited by 45
High technology workers and total rewards
Medcof, J. W., & Rumpel, S. (2007) · doi:10.1016/j.hitech.2007.03.004 · Cited by 35
Artificial intelligence in hospitality: A transactional stress perspective on the mental health of hospitality workers
Yan, J., Xiao, Q., Zhang, S. X., & Guchait, P. (2024) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2024.104029 · Cited by 38
Creativity-oriented HRM and organizational creativity in China
Song, Z.-G., Gu, Q.-X., & Wang, B.-Y. (2019) · International journal of manpower · doi:10.1108/ijm-05-2016-0108 · Cited by 34
Implementing commitment HR practices: line manager attributions and employee reactions
Yang, J., & Arthur, J. B. (2019) · The International Journal of Human Resource Management · doi:10.1080/09585192.2019.1629986 · Cited by 45
“The variance in the HR attributions of individuals is a function of the strength of an HR system (Bowen & Ostroff, 2004).”
BackgroundMethodInfluential
Stimulating teachers’ team performance through team-oriented HR practices: the roles of affective team commitment and information processing
Bouwmans, M., Runhaar, P. R., Wesselink, R., & Mulder, M. (2017) · The International Journal of Human Resource Management · doi:10.1080/09585192.2017.1322626 · Cited by 55
“…HR practices will influence teachers’ affective team commitment and information processing This occurs as HR practices have been found to ‘signal’ employers’ intentions to invest in employees, with employees (teachers) responding in ways they believe are appropriate (Bowen and Ostroff 2004).”
BackgroundResult
Expanding the work–life balance discourse to LGBT employees: Proposed research framework and organizational responses
Stavrou, E., & Ierodiakonou, C. (2018) · Human Resource Management · doi:10.1002/hrm.21910 · Cited by 34
Preserving employee capabilities in economic turbulence
Maley, J. (2018) · Human Resource Management Journal · doi:10.1111/1748-8583.12211 · Cited by 34
Rethinking Career Studies: Facilitating Conversation across Boundaries with the Social Chronology Framework
Gunz, H., & Mayrhofer, W. (2018) · doi:10.1017/9781107414952 · Cited by 34
Rewards for Patents and Inventor Behaviors in Industrial Research and Development
Giarratana, M. S., Mariani, M., & Weller, I. (2017) · Academy of Management Journal · doi:10.5465/amj.2015.0633 · Cited by 46
“Similarly, strategic HRM literature has recognized that firms can create more uniform and unambiguous reactions among employees if they implement strong, distinctive, and consistent HRM systems (Bowen & Ostroff, 2004).”
Background
High-Performance Work Systems as an Initiator of Employee Proactivity and Flexible Work Processes
Evans, W. R., & Davis, W. D. (2015) · Organization Management Journal · doi:10.1080/15416518.2014.1001055 · Cited by 39
“…constructs suggested as important include the internal social structure among employees (Evans & Davis, 2005), the strength of the HRM system (Bowen & Ostroff, 2004), line of sight (Buller & McEvoy, 2012), organizational resilience (Lengnick-Hall, Beck, & Lengnick-Hall, 2011), and adaptive…”
Background
Getting inside the black box
Mansour, N., Gara, E., & Gaha, C. (2014) · Personnel Review · doi:10.1108/pr-03-2013-0052 · Cited by 34
“Consequently, examining the relationships between HRM and firm performance has became a central research trend in SHRM (Boxall and Purcell, 2003; Choi and Lee, 2013). Indeed, a continuously growing body of research has steadily reported a statistically significant HRM-performance relationship across a wide variety of…”
Background
Climate and Culture Strength
Schneider, B. N., Barbera, K. M., González‐Romá, V., & Silla, J. M. P. (2014) · Oxford University Press eBooks · doi:10.1093/oxfordhb/9780199860715.013.0026 · Cited by 14
A Review of Human Resource Accounting and Organizational Performance
Cherian, J., & Farouq, S. (2013) · doi:10.5539/ijef.v5n8p74 · Cited by 34
“But, there is no adequate information on the role of HR measurement on firm’s growth (Bowen & Ostroff, 2004).”
Background
Facing e-HRM: the consequences on employee attitude towards the organisation and the HR department in Italian SMEs
Bissola, R., & Imperatori, B. (2013) · European J of International Management · doi:10.1504/ejim.2013.055282 · Cited by 34
“In terms of the employee-organisation relationship, e-HRM practices could help sustain transparency in the work environment, inducing employees to reciprocate (Bowen and Ostroff, 2004) Thus, e-HRM practices could sustain the up-to-date and expert image of the HR department, signalling the advanced competencies of HR p…”
Background
An Exploratory Examination of Supervisor Undermining, Employee Involvement Climate, and the Effects on Customer Perceptions of Service Quality in Quick-Service Restaurants
Mathe, K., & Slevitch, L. (2013) · Journal of Hospitality & Tourism Research · doi:10.1177/1096348011413590 · Cited by 34
When leaders victimize: The role of charismatic leaders in facilitating group pressures
Samnani, A., & Singh, P. (2012) · The Leadership Quarterly · doi:10.1016/j.leaqua.2012.10.006 · Cited by 32
Human resource management – practices, performance and strategy in the Italian hotel industry
Bresciani, S., Thrassou, A., & Vrontis, D. (2012) · doi:10.1504/wremsd.2012.050297 · Cited by 34
“Ostroff and Bowen (2000) and more recently Bowen and Ostroff (2004) have developed the most extensive multi-level model of HRM, arguing that HR practices serve as communication mechanisms signalling employees to engage in certain behaviours.”
Background
Senior managers' perceptions of the practice of human resource management
Maxwell, G., & Farquharson, L. (2008) · doi:10.1108/01425450810866550 · Cited by 34
“, 2007) and in terms of business performance (Bowen and Ostroff, 2004; Harris, 2005).”
BackgroundInfluential
Does alignment elicit competency-based HRM? A systematic review
Audenaert, M., Vanderstraeten, A., Buyens, D., & Desmidt, S. (2014) · Ghent University Academic Bibliography (Ghent University) · doi:10.1688/mrev-2014-01-audenaert · Cited by 34
Creating a compassion system to achieve efficiency and quality in health care delivery
Vogus, T. J., McClelland, L. E., Lee, Y. S. H., McFadden, K. L., & Hu, X. (2021) · Journal of Service Management · doi:10.1108/josm-05-2019-0132 · Cited by 34
LGBTQ Systems: A Framework and Future Research Agenda
Roberson, Q. M., Ruggs, E. N., Pichler, S., & Holmes, O. (2023) · Journal of Management · doi:10.1177/01492063231194562 · Cited by 33
“…the linkage between HRM and performance argues that people do sensemaking about HR practices based on their direct experiences with those practices (Bowen & Ostroff, 2004; Ostroff & Bowen, 2016), it follows that LGBTQ and non-LGBTQ employees may interpret supportive policies and practices…”
BackgroundInfluential
The role of collaborative human resource management in supporting open innovation: A multi-level model
Engelsberger, A., Bartram, T., Cavanagh, J., Halvorsen, B., & Bogers, M. (2022) · Human Resource Management Review · doi:10.1016/j.hrmr.2022.100942 · Cited by 33
Understanding developers’ privacy and security mindsets via climate theory
Peretz, R. A., Hadar, I., Luria, G., & Sherman, S. (2021) · Empirical Software Engineering · doi:10.1007/s10664-021-09995-z · Cited by 31
“Organizational climate is in general defined as shared perceptions of the organizational environment (Bowen and Ostroff 2004).”
Background

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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