Mixture Models of Human Resource Management Flexibility and Firm Performance

Numerical flexibility and functional flexibility are the two dimensions of human resource flexibility. The mixtures of the two dimensions form four models. They are HH model(high functional flexibility and high numerical flexibility), LL model (low functional flexibility and low numerical flexibility), LH model(low functional flexibility and high numerical flexibility) and HL model (high functional flexibility and low numerical flexibility). The various mixture models differ from firm performance. Principal Component Analysis is used in this paper to find which model contributes much more to firm performance. It is demonstrated that in Chinese firms HL model is more effective for firm performance than other models.