The Effectiveness of Strategic Human Resource Management in Increasing Firm Performance in Indonesia

Proceedings of World Business and Economics Research Conference 2012

2 Pages Posted: 9 Dec 2012

See all articles by Yuniari Susilowati

Yuniari Susilowati

Bogor Agricultural University (IPB University)

Parulian Hutagaol

Bogor Agricultural University (IPB University)

Bomer Pasaribu

Bogor Agricultural University (IPB University)

Setiadi Djohar

Bogor Agricultural University (IPB University)

Date Written: November 23, 2012

Abstract

In Indonesia, HR practitioners and academics believe that Strategic Human Resource Management (SHRM) has a direct and positive impact on firm performance. This belief is thought to be rather conventional, since numerous studies across the globe on the relationship between SHRM and firm performance have shown the inconclusive results. There are unknown factors called "black-box" between SHRM-firm performance relationships that need to clarify. This study therefore aims at analyzing the "black-box" that may play a crucial role in the relationship between SHRM-firm performances in Indonesia. In order to gain a wider understanding of the context of Indonesian companies, this study involves companies from various industries, and to better understand the HRM practices in the participating companies, this study employs multiple respondents ranging from the Supervisor to the Director levels. The main findings of this study reveal that the role of line managers in implementing HR systems and procedures, employees' competency, motivation and performance are confirmed to be strong significant mediating variables between SHRM and firm performance relationship.

Keywords: Management, Strategic HRM, Black-box, The Role of Line Managers, Industrial Relations

Suggested Citation

Susilowati, Yuniari and Hutagaol, Parulian and Pasaribu, Bomer and Djohar, Setiadi, The Effectiveness of Strategic Human Resource Management in Increasing Firm Performance in Indonesia (November 23, 2012). Proceedings of World Business and Economics Research Conference 2012 , Available at SSRN: https://ssrn.com/abstract=2186296 or http://dx.doi.org/10.2139/ssrn.2186296

Yuniari Susilowati (Contact Author)

Bogor Agricultural University (IPB University) ( email )

Bogor Indonesia
Bogor, West Java 16680
Indonesia

Parulian Hutagaol

Bogor Agricultural University (IPB University) ( email )

Bogor Indonesia
Bogor, West Java 16680
Indonesia

Bomer Pasaribu

Bogor Agricultural University (IPB University) ( email )

Bogor Indonesia
Bogor, West Java 16680
Indonesia

Setiadi Djohar

Bogor Agricultural University (IPB University) ( email )

Bogor Indonesia
Bogor, West Java 16680
Indonesia

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