The authors’ affiliations are, respectively, School of Business, University of Kansas, 326 Summerfield Hall, 1300 Sunnyside Ave., Lawrence, KS 66045-7601, E-mail: firstname.lastname@example.org; School of Business, Ewha Womans University, 11-1 Daehyun-dong Seodaemun-gu, Seoul, Korea 120-751, E-mail: email@example.com; and School of Business, Konkuk University, 402 Kyungyoung Kwan, Hwayang-dong 1, Gwangjin-gu, Seoul, Korea 143-701. E-mail: firstname.lastname@example.org. We are indebted to Gopesh Anand for insightful suggestions on our analysis.
Human Resource Management’s Effects on Firm-Level Relative Efficiency
Article first published online: 21 JUN 2012
© 2012 Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 51, Issue 3, pages 704–730, July 2012
How to Cite
CHADWICK, C., AHN, J.-Y. and KWON, K. (2012), Human Resource Management’s Effects on Firm-Level Relative Efficiency. Industrial Relations: A Journal of Economy and Society, 51: 704–730. doi: 10.1111/j.1468-232X.2012.00696.x
- Issue published online: 21 JUN 2012
- Article first published online: 21 JUN 2012
Using stochastic frontier production functions methodology with data from 1579 private-sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm-level efficiency. Supplemental analysis implies that this efficiency analysis is substantively different than the common approach to evaluating HRM’s relationships with firm-level labor productivity. The results suggest that HR practices’ contributions to relative firm-level efficiency are an important but heretofore overlooked factor in the relationship between HRM and firm performance.