Organizational and HRM strategies in Korea: Impact on firm performance in an emerging economy

To examine the effects of organizational strategic variables, such as management values regarding human resource management (HRM) and the sources of competitive advantage, we developed a model and tested it with data from 138 firms in Korea. The workers studied were nonmanagers. Firms with high scores on valuing HRM and people as a source of competitive advantage were more likely to have high-involvement HRM strategies. These variables also had positive effects on firm performance. In addition, firms with high-involvement HRM strategies had better performance.