Exploring the HRM-performance relationship: the role of creativity climate and strategy

Purpose. While an established stream of research evidence has demonstrated that Human Resource Management (HRM) is positively related to organisational performance, explanations of this relationship remain underdeveloped while performance has been considered in a narrow fashion. Exploring the relevant but often neglected impact of creativity climate, this paper examines key processes (mediation and moderation) linking high-performance human resource practices with a broad range of organisational performance measures. Design/methodology/approach The paper draws on a People Management Survey of 169 HR managers from top performing firms in the Republic of Ireland. Findings. The findings provide general support for the role of creativity climate as a key mediator in the HRM-performance relationship, while strategic orientation was found to play a significant role in moderating the impact between HRM and employee performance but not HPWS, HR performance and organisational performance. Practical implications. HPWS are found to directly impact a range of organisational performance outcomes. Creativity climate provides an understanding of the mechanisms through which such impact takes effect. Organisations should develop a clear and consistent general HR philosophy to realise HR and organisational performance, but also pay due attention to the key contingencies in terms of nature of employee desired behaviours. Originality/value. The paper offers a more intricate understanding of the key factors shaping both the operation and impact of the HRM-performance relationship. Purposeful consideration of multi-faceted dimensions of organisational outcomes enabled a more nuanced and considered explication of the impact of HPWS