Abstract
This article explores the relationships between human resource (HR) flexibility, organizational culture, and organizational performance. Drawing on previous works, we develop a conceptual model that links the constructs together. It is hypothesized that the three sub-dimensions of HR flexibility (i.e. employee skill flexibility, employee behaviour flexibility, and HR practice flexibility) affect adaptability culture, which in turn impacts HR-related and market-related outcomes. The data were collected via a questionnaire survey of HR directors/managers in multinational corporations (MNCs) in Hong Kong. The results of structural equation modelling (SEM) reveal the positive effects of employee behaviour flexibility and HR practice flexibility on adaptability culture. Employee skill flexibility, however, exerts no such effect. Further, adaptability culture is found to affect both HR-related and market-related performance in a positive manner.
Introduction
The notion of flexibility has attracted a great deal of research attention in the past decade. Sanchez (1995) defines it as the ability of a firm to respond to various demands from its dynamic competitive environment. Viewed as a critical organizational capability, flexibility enables a firm to adapt to diverse and changing requirements from the external environment (Snow and Snell 1993; Wright and Boswell 2002) and to achieve and maintain competitive advantage and superior performance (Sanchez 1995; Hitt, Keats and DeMarie 1998).
Conclusions
HR flexibility is a new construct that has attracted increasing research attention in recent years. Its emphasis is on adapting employee attributes such as knowledge, skills, and behaviours to changing environmental conditions. Based on resource-based view, HR flexibility is expected to enhance firm performance. In the study, we developed a conceptual model that links HR flexibility to organizational performance via adaptability culture. Some interesting findings have been obtained which supported our hypotheses. We hope that the study spurs additional research that advances our understanding of the set of issues and relationships surrounding HRM, organizational culture, and firm performance in the context of MNCs.
