Conclusion
While there has been great research interest in the topic of the HRM–firm performance relationship for at least two decades, and making an important distinction between HRM practices and the role of the HR department, our understanding of the nature of the linkages remains limited. In this paper we suggest that in part this is because of the different approaches evident from a view of the extant literature. Our central argument is that this means that despite extensive and methodologically sophisticated research evidence, our understanding remains partial and incomplete; though many scholars have investigated the HR-performance link, they are not necessarily always talking about the same thing. To this end, this paper has reviewed the literature on the HRM–firm performance relationship and argues that our understanding of the mechanisms through which HR decisions create and sustain value in an organisation can be improved by a better integration of the literatures on HR practices and HR professionals/ department, and by adding a missing link to the insights offered in the CG literature. Specifically, this paper incorporates some key CG literature on boards and TMTs that has been considered in some studies of the HRM–firm performance relationship and provides a much-needed synthesis of the literature relating HR to firm performance and the moderating role of CG. Our work highlights the importance of HR professionals actively connecting to key stakeholders and understanding their expectations for both creating value of HR practices for the organisation, as well as increasing the profile of the HR department.