Research Article

MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE RELATIONSHIP BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A CONCEPTUAL REVIEW

Nurudeen Oyairekhua Aileobini1*, Abubakar Sadiq Suleiman2
1 Department of Business Administration, Federal University Dutsi- Ma, Katsina State.
2 Federal University Dutsin-Ma, Katsina State-Nigeria
* Corresponding author: nuruaileobini@gmail.com
Published: Jun, 2023
DOI: 10.67894/bjms.2023.ljd2xmbe
Pages: 106-123

Abstract

The main objective of the study is to examine the moderating role of organizational culture on the relationship between strategic human resources management and organizational performance: a conceptual review. Literatures reviewed shows an inconsistency on the relationship between strategic human resources management and organizational performance and also it could be noted that based on the literature there is ample evidence that suggests that organizational culture has a positive and strong impact on organizational performance. Therefore, it is recommended that firms in developing countries like Nigeria should be careful in adapting strategic human resources management practices from the developed nations as literature shows that most of the studies conducted in developing country reveal insignificant or negative results. It is suggested that future studies to apply the proposed conceptual framework in developing nation like Nigeria to find out if organizational culture can moderate the relationship. 

Keywords

Organizational Performance SHRM Organizational Culture

References

  1. Abolo, A. P. (2023). Board Size and Financial Performance of Listed Real Estate Companies in Nigerian. International Journal of Advancement in Accounting, Management and Human Development, 8(1), 12-19.
  2. Aboramadan, M., & Borgonovi, E. (2016). Strategic management practices as a key determinant of superior non-governmental organisations performance. Problems of Management in the 21st Century, 11(2), 71–92.
  3. Abu-Jarad, Y. I., Yusof, N. & Nikbin, D. (2010). A Review Paper on Organizational Culture and Organizational Performance. International journal of Business and Social science, 1(3), 1-13.
  4. Abuzaid, A. N. (2018). Scenario planning as approach to improve the strategic performance of multinational Corporations (MNCS). Business: Theory and Practice, 19, 195–207. https://doi.org/10.3846/btp.2018.20.
  5. Aktaş, E., Ciçek, I., & Kiyak, M. (2019).The effect of Organizational Culture on Organizational Efficiency: The Moderating Role of Organizational Environment and CEO Values, Procedia - Social and Behavioral Sciences, vol. 24, pp. 1560–1573, 2019.
  6. Al-Muhrami, M. A. S., Alawi, N. A., Alzubi, M., & Al-Refaei, A. A. A. (2021, June). Affecting the Behavioural Intention to Use Electronic Banking Services Among Users in Yemen: Using an Extension of the Unified Theory of Acceptance and Use of Technology. In 2021 2nd International Conference on Smart Computing and Electronic Enterprise (ICSCEE) (pp. 257-264). IEEE.
  7. Almuslamani, H. A. I. & Daud, S. (2022). The Moderating Effect of Organizational Culture on the Relationship between Strategic Human Resource Practices and Stainable Competitive Advantage in Bahrain. Inf. Sci. Lett. 11(1), 293-308
  8. Alsamawi, M. A., Darun, M. R., & Panigrahi, S. K. (2019). Investigating the Effect of Corporate Social Responsibility and Affective Commitment on Corporate Performance in Oil and Gas Corporations in Yemen. Journal of Advanced Research in Business and Management Studies, 17(1), 41-56.
  9. Armstrong M. (2008). Strategic Human Resource Management: A Guide to Action, 4th Edition, Kogan Page, London; 11. PMid:22470592 PMCid:PMC3303257.
  10. Bamgbade, J. A., Kamaruddeen, A. M., & Nawi, M. N. M. (2017). Malaysian Construction Firms' Social Sustainability via Organizational Innovativeness and Government Support: The Mediating Role of Market Culture. Journal of Cleaner Production, vol. 154, pp. 114–124, 2017.
  11. Bamgbade, J. A., Nawi, M. N. M. Kamaruddeen, A. M. & Adeleke, A. Q. (2019). Building sustainability in the construction industry through firm capabilities, technology and business innovativeness : empirical evidence from Malaysia," International Journal of Construction Management, vol. 0, no. 0, pp. 1–16, doi: 10.1080/15623599.2019.1634666.
  12. Belias, D., Koustelios, A., Vairaktarakis, G., & Sdrolias, L. (2021). Organizational Culture and Job Satisfaction of Greek Banking Institutions," Procedia - Social and Behavioral Sciences, vol. 175, pp. 314–323, 2021.
  13. Boon, C., Eckardt, R., Lepak, D. P., & Boselie, P. (2018). Integrating strategic human capital and strategic human resource management. The International Journal of Human Resource Management, 29(1), 34-67.
  14. Boxall, P. (2018). The development of strategic HRM: reflections on a 30-year journey. Labour & Industry: A Journal of the Social and Economic Relations of Work, 28(1), 21–30. https://doi.org/10.1080/10301763.2018.1427423
  15. Brandão, C., Silva, R., & dos Santos, J. V. (2019). Online recruitment in Portugal: Theories and candidate profiles. Journal of Business Research, 94, 273-279.
  16. Brewster Chris et al. (2000). Contemporary Issues in Human Resource Management: Gaining a Competitive Advantage, Oxford University Press, Cape Town. 2000; 56pp.
  17. Cameron, K. & Quinn, R. (2006). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco: John Wiley & Sons, 2006.
  18. Chawla, A. S., Gahlawat, N., & Kumar, S. (2022). Strategic HRM and Firm Performance: Mediating Role of Knowledge Management Capacity and Innovation Performance. Sage Journal, 48(1), 1-12. https://doi.org/10.1177/0258042X221113676
  19. Chopra, R. (2017). Strategic Human Resource Management and its Impact on Organisational Performance, Global Journal of Enterprise Information System, 9(3), 89-93.
  20. Chourasia, A., & Bahuguna, P. C. (2023). HR Managers ' Competencies in Implementing Strategic HRM : A Causal Attribution Theory perspective. Indian Journal of Science and Technology, 16(22), 1645–1656. https://doi.org/https://doi.org/10.17485/IJST/v16i22.341
  21. Chourasia, A., Bahuguna, P. C., & Raju, T. B. (2023). Strategic Human Resource Management, a Road to Organizational Performance: Evidence from Public Sector Organizations in the Oil and Gas Sector. International Journal of Organizational Leadership 12(First Special Issue - 2023) 66-90 .
  22. Collins C. J., & Clark, K. D. (2003). Strategic Human Resource Practices, Top Management Team Social Networks, and Firm Performance: The Role of Human Resource Practices In Creating Organizational Competitive Advantage. Academy of Management Journal. 2003; 46(6):740. https://doi.org/10.2307/30040665
  23. Dani, S. S., Burns, N. D., Backhouse, C. J. & Kochhar, K. (2006). The Implications of Organizational Culture and Trust in the Working of Virtual Teams," Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, vol. 220, no. 6, pp. 951–960, 2006.
  24. Dessler G. (2007). Human Resource Management. New Delhi: Prentice Hall of India Private Limited. 2007.
  25. Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process , planning fl exibility , and innovativeness to firm performance. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2013.10.011.
  26. Dyer, L., & Reeves, T. (1995). Human Resource Strategies and Firm Performance: What Do We Know and Where Do We Need To Go? The International Journal of Human Resource Management. 1995; 6(3):656. https://doi.org/10.1080/09585199500000041
  27. Erkutlu et al., H. (2021). "The moderating role of organizational culture in the relationship between organizational justice and organizational citizenship behaviors," Leadership & Organization Development Journal, vol. 32, no. 6, pp. 532–554, 2021.
  28. Fahim, M. G. A. (2018). Strategic human resource management and public employee retention. Review of Economics and Political Science, 3(2), 20-39.
  29. Ferdousi, F. & Abedin, N. (2023). Strategic Human Resources Management for Creating Shared Value in Social Business Organizations. Sustainability 2023, 15, 3703. https://doi.org/10.3390/su15043703 \
  30. Fitz-enz J. (2000). The ROI of Human Capital: Measuring the Economic Value of Employee Performance. American Management Association, USA. 2000; 1pp.
  31. Frank, D. F., & Taylor, C. R. (2004). Talent Management: Trends that will shape the future. Human Resources Planning, 27(1), 33–41.
  32. García, J. A. M., & Tomas, J. M. (2016). Deconstructing AMO framework: a systematic review. In Intangible Capital (Vol. 12, No. 4, pp. 1040-1087).
  33. Gituma, M. & Beyene, T. (2018). Strategic Human Resource Management Practices and Organizational Performance: A Case of National Insurance Corporation of Eritrea (Nice). Global Journal of Management and Business Research: A Administration and Management, 18(1), 1-15.
  34. Gregory, T. B., Harris, S. G., Armenakis, A. A., & Shook, C. L. (2009). Organizational Culture and Effectiveness: A Study of Values, Attitudes, and Organizational Outcomes," Journal of Business Research, vol. 62, no. 7, pp. 673–679, 2009.
  35. Guha, S. (2023). Implication of Strategic Human Resource Management and Effectiveness of Organisational Performance. International Journal of Novel Research and Development, 8(6), 424-431.
  36. Hadi, A., Yanita, S., Hartanto, N. & Sychanina, S. (2020). Strategic environment resource management concept and needs. Journal of Environmental Treatment Techniques, 8(1), 652-656.
  37. Hammond, H., & Churchill, R. Q. (2018). The role of employee training and development in achieving organizational objectives: A study of Accra Technical University. Archives of Business Research, 6(2), 67-74.
  38. Han, J. H., Kang, S., Oh, I. S., Kehoe, R. R., & Lepak, D. P. (2019). The goldilocks effect of strategic human resource management? Optimizing the benefits of a high-performance work system through the dual alignment of vertical and horizontal fit. Academy of Management Journal, 62(5), 1388–1412. https://doi.org/10.5465/amj.2016.1187
  39. Henry, T. &Zheng, G. (2017). Institutional ownership and firm performance: Evidence from U.S- based public trade restaurants firms. Journal of Hospitality and Tourism Research, 3 (1), 19-38.
  40. Imran, M., Ismail, F., Arshad, I., Zeb, F., & Zahid, H. (2021). The mediating role of innovation in the relationship between organizational culture and organizational performance in Pakistan's banking sector. Journal of Public Affairs, e2717.
  41. Ironkwe, U, I., E., & Emefe, P. (2019). Corporate ownership structure on financial performance of quoted companies in Nigeria. International journal of Advance Academic Research, Social and Management Sciences, 5 (4), 67-87.
  42. Ismail, F. M. I., & Al Hosni, A. A. H. H. (2021). The Influence of Job Satisfaction and Organizational Culture on Organizational Performance: Empirical Evidence from Pakistan's Banking Sector. Webology (ISSN: 1735-188X), 18(3).
  43. Ismaila, H., & Tanko, H. A., (2023). Ownership Structure and Financial Performance of Listed Insurance Firms in Nigeria: Moderating Role of Independent Director. International Journal of Research and Innovation in Social Science (IJRISS), 7(5), 1833-1840.
  44. Jamali, A., Bhutto, A., Khaskhely, M., & Sethar, W. (2022). Impact of leadership styles on faculty performance: Moderating role of organizational culture in higher education. Management Science Letters, 12(1), 1-20.
  45. Kamaamia, A. T. (2017). The Effect of Organizational Culture on Organizational Performance: A Case of Kenya School of Monetary Studies (KSMS). Unpublished Masters Dissertation, United States International University - Africa
  46. Kaplan, F. L. (2012). Non-Financial Performance Indicator. Retrieved from: https://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Non-Financial%20Performance%20Indicators%20(NFPIs).aspx
  47. Keir, M. Y. A. (2016). "Staff Perceptions of how Human Organisational Performance: Mediating roles of Organisational Culture, Employees' Commitment and Employee Retention in Bahrain Private Universities," Cardiff Metropolitan University, 2016.
  48. Khan, M. H. (2018). Strategic Human Resource Practices and its Impact on Performance towards Achieving Organizational Goals. Business Ethics and Leadership, (2)2, 1-8.
  49. Khan, W. A., Minghai, Y., Nadim, M., Hafeez, A., Massinissa, K., Pucelj, M. (2023). The Impact Of Strategic Human Resource Management On Organizational Performance: Progress And Prospects-- Palarch's Journal of Archaeology of Egypt/Egyptology 20(2), 1465-1483. ISSN 1567-214x
  50. Kiowi, L. O. (2023). Human Resource Strategy Formulation: Process Review in the Tanzania Public Sector. Journal of Economics, Management and Trade, 29(9), 64–75. https://doi.org/10.9734/jemt/2023/v29i91129
  51. Kornelius, H., Supratikno, H., Bernarto, I., & Widjaja, A. W. (2021). Strategic Planning and Firm Performance : The Mediating Role of Maneuverability. Journal of Asian Finance, Economics and Business Vol, 8(April). https://doi.org/10.13106/jafeb.2021.vol8.no1.479.
  52. Kundu, S. C., Bansal, J., & Pruthi, M. (2019). Perceived workforce diversity and firm performance: a study of an Indian public sector organization. Journal of Strategic Human, 8(1), 47–60. http://search.proquest.com/openview/26e0d5324c8e2e31fa13f2dee5744831/1?pq-origsite=gscholar&cbl=2030931
  53. Kwon, H. W. (2020). Performance appraisal politics in the public sector: The effects of political skill and social similarity on performance rating. Public Personnel Management, 49(2), 239–261. https://doi.org/10.1177/0091026019859906
  54. Lee, I., & Cogin, J. (2020). Formalizing the HRM and firm performance link : the S-curve hypothesis Formalizing the HRM and firm performance link : The International Journal of Human Resource Management, 0(0), 1–32. https://doi.org/10.1080/09585192.2020.1746682
  55. Muideen, O. (2020). Strategic human resource practices and corporate performance in manufacturing industries in Ogun State Nigeria. Studies in Indian Place Names, 40(60), 3377-3388.
  56. Naranjo-Valencia, J., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología, vol. 48, no. 1, pp. 30–41, 2016.
  57. O'Donnell, O., & Boyle, R. (2008). Understanding and Managing Organisational Culture. Dublin: Institute of Public Administration, 2008.
  58. Patiar, A., & Wang, Y. (2020). Managers' leadership, compensation and benefits, and departments' performance: Evidence from upscale hotels in Australia. Journal of Hospitality and Tourism Management, 42, 29-39.
  59. Polychroniou, P., & Trivellas, P. (2018). The impact of strong and balanced organizational cultures on firm performance: Assessing moderated effects. International Journal of Quality and Service Sciences, 10(1), 16–35. https://doi.org/10.1108/IJQSS-09-2016-0065
  60. Rahmatullah, A., Ramdansyah, A. D., Kambara, R., & Haryadi, D. (2022). Improving Organizational Performance with Organizational Culture and Transformational Leadership through Intervening Organizational Commitment Variables. Dinasti International Journal of Digital Business Management, 3(2), 161-176.
  61. Ratnawati, K. (2020). The influence of financial inclusion on MSMEs' performance through financial intermediation and access to capital. Journal of Asian Finance, Economics and Business, 7(11), 205–218. https://doi.org/10.13106/jafeb.2020.vol7.no11.205.
  62. Savić, B., Jelić, S. & Ostojić, V. V. (2023). The impact of organizational culture on financial performance1of the company in Serbia. Savić et al. / Economic Themes, 61(2): 235-248.
  63. Schein, E., (2010). Organizational Culture and Leadership, vol. 7. San Francisco: John Willey & Sons, 2010.
  64. Sepahvand, R., & Khodashahri, R. B. (2021). Strategic Human Resource Management Practices and Employee Retention: A Study of the Moderating Role of Job Engagement. Iranian Journal of Management Studies (IJMS) 2021, 14(2): 437-468.
  65. Shaari, N. (2019). Organizational Culture as the Source of Competitive Advantage. Asian Journal Research in Education and Social Sciences, 1(1), 26–38.
  66. Su, Z. X., Wright, P. M., & Ulrich, M. D. (2018). Going beyond the SHRM paradigm: Examining four approaches to governing employees. Journal of Management, 44(4), 1598–1619. https://doi.org/10.1177/0149206315618011
  67. Suwarto, F. X., Subyantoro, A., Yuliarti, V. T., & Nur, Y. (2023). The effect of strategic human resource management, transformational leadership and information sharing on organizational performance (Case Study at Depok City Public Hospital). International Journal of Management Studies and Social Science Research , 5(1), 93-105
  68. Uysal, G. (2019). 3rd definition of SHRM: HR systems approach. Management Studies, 7(5), 496-501.
  69. Widyanty, W., Daito, A., Riyanto, S., & Nusraningrum, D. (2020). Gaining a competitive advantage through strategic human resource management in Indonesian construction industry. Management Science Letters, 10(2020), 2021–2028. doi:10.5267/j.msl.2020.2.010.
  70. Ying, L. H. &. Zaman, B. A. (2019). "The Moderating Effects of Organizational Culture on the Relationships between Leadership Behaviour and Organizational Commitment and between Organizational Commitment and Job Satisfaction and Performance," Leadership & Organization Development Journal, vol. 30, no. 1, pp. 53–86, 2019.
How to Cite

Aileobini, N. O., & Suleiman, A. S. (2023). MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE RELATIONSHIP BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A CONCEPTUAL REVIEW. Bayero Journal of Management Sciences, 5(1), 106-123. https://doi.org/10.67894/bjms.2023.ljd2xmbe

N. O. Aileobini, and A. S. Suleiman, "MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE RELATIONSHIP BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A CONCEPTUAL REVIEW," Bayero Journal of Management Sciences, vol. 5, no. 1, pp. 106-123, June 2023. doi: 10.67894/bjms.2023.ljd2xmbe

Share this article:
Facebook X / Twitter LinkedIn
Download PDF View Full Text (PDF) Back to Articles