Strategic HRM practices and their impact on company performance in Chinese enterprises

Abstract This study examined the factorial validity of strategic human resource management practices and their effects on company performance in a sample of 465 Chinese enterprises. Data were collected through two questionnaire surveys among general managers and HRM directors on product/service performance of their companies and a range of strategic HRM practices. Our findings indicate that a valid set of strategic HRM practices (training, participation, results‐oriented appraisals, and internal career opportunities) affect both product/service performance and financial performance. Employment security and job descriptions contribute uniquely to product/service performance, whereas profit sharing contributes uniquely to financial performance. © 2008 Wiley Periodicals, Inc.