TY - JOUR
T1 - Firm employee relations system and financial performance
T2 - Unfolding the Dual-Causal relationship and the associated temporal and resource boundary conditions
AU - Chang, Song
AU - Leung, Wai Kin
AU - Yao, Fiona Kun
AU - Gong, Yaping
N1 - Funding Information:
An early version of work has benefited significantly from Hui Liao’s comments. All four authors contributed to the paper equally and were predetermined at the beginning of the project.
Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022/10/11
Y1 - 2022/10/11
N2 - Prior research has reported a positive relationship between a firm’s human resource management system and performance. In this study, we add to this line of research by investigating the dual-causal relationship between firms’ employee relations system (ERS) and financial performance and the associated temporal and resource boundary conditions. Using matched data between firm ERS and financial performance across 18years, we find support for the dual-causal relationship between firm ERS and Tobin’s Q. We also find that the impact of firm ERS on Tobin’s Q loses its significance over time, whereas the impact of Tobin’s Q on ERS largely remains stable over time. Lastly, we find that firm resource availability makes the positive impact of firm ERS on financial performance (Tobin’s Q and net income per employee) stronger and longer lasting.
AB - Prior research has reported a positive relationship between a firm’s human resource management system and performance. In this study, we add to this line of research by investigating the dual-causal relationship between firms’ employee relations system (ERS) and financial performance and the associated temporal and resource boundary conditions. Using matched data between firm ERS and financial performance across 18years, we find support for the dual-causal relationship between firm ERS and Tobin’s Q. We also find that the impact of firm ERS on Tobin’s Q loses its significance over time, whereas the impact of Tobin’s Q on ERS largely remains stable over time. Lastly, we find that firm resource availability makes the positive impact of firm ERS on financial performance (Tobin’s Q and net income per employee) stronger and longer lasting.
KW - dual-causal relationship
KW - financial performance
KW - firm employee relations system
KW - temporal and resource boundary conditions
UR - https://www.ingentaconnect.com/content/routledg/rijh/2022/00000033/00000018/art00001
UR - http://www.scopus.com/inward/record.url?scp=85108288027&partnerID=8YFLogxK
U2 - 10.1080/09585192.2021.1931409
DO - 10.1080/09585192.2021.1931409
M3 - Journal article
AN - SCOPUS:85108288027
SN - 0958-5192
VL - 33
SP - 3591
EP - 3628
JO - International Journal of Human Resource Management
JF - International Journal of Human Resource Management
IS - 18
ER -